Most commonly software development companies have good statistics as their profit usually remains high. The same is true for the German company SAP SE. It is a leading global manufacturer of enterprise management software.
In the third quarter 2019, the developer’s net profit jumped by 28%. In the accounting period, the score reached €1.259 billion from €971 million over the same period in 2018. Total operating revenue, which SAP considers to be the most accurate indicator, skyrocketed by 36% to €1.679 billion. Adjusted operating profit for the quarter rose by 15% while total income increased by 13% to €6.791 billion.
Revenue from cloud subscriptions and support run high by 37% to €1.79 billion for the previous quarter. At the same time, software license sales and software user support grew by 4%. The total amount was €3.839 billion.
According to the SAP outlook, excluding exchange rates fluctuations, adjusted operating profit is set to increase by 9.5%–12% in the current year. That equals roughly to €7.85 - €8.05 billion.
In the long run, the company is planning to achieve all its objectives. The software manufacturer intends to reach profitability ratio in the cloud business at the level of 75%. The volume of expected revenue may exceed €35 billion, experts say. The company’s capitalization has expanded by over 34% since early 2019. At present, the market cap is estimated at €138 billion.
