By Mauro Orru
SAP said Tuesday that net profit and revenue for the fourth quarter of 2019 increased on year, and it upwardly revised guidance for 2020.
The German software company /zigman2/quotes/207905606/composite SAP -4.18% /zigman2/quotes/203458330/delayed DE:SAP -3.88% reported net profit of 2.18 billion euros ($2.4 billion) on a non-IFRS basis in the fourth quarter compared with EUR1.79 billion a year earlier. Operating profit for the period was EUR2.84 billion on a non-IFRS basis, beating Vara Research estimates of EUR2.83 billion.
Revenue was EUR8.05 billion on a non-IFRS basis, up from EUR7.43 billion a year earlier, with cloud and software contributing EUR6.86 billion on a non-IFRS basis, against Vara Research estimates of EUR6.92 billion.
SAP said it now expects 2020 revenue on a non-IFRS basis of between EUR29.2 billion and EUR29.7 billion at constant currencies, up from previous guidance of EUR28.6 billion and EUR29.2 billion. It also sees 2020 operating profit on a non-IFRS basis of between EUR8.9 billion and EUR9.3 billion at constant currencies, up from previous guidance of between EUR8.8 billion and EUR9.1 billion.