By Giulia Petroni
SAP SE said late Wednesday that revenue for the first quarter rose and adjusted its full-year guidance due to the effect of the coronavirus pandemic on its business.
The German software company said preliminary results showed total revenue rose 7% on year to 6.52 billion euros ($7.08 billion). Revenue in the cloud business segment grew 29% on year to EUR2.01 billion, while software licenses revenue was down 31% to EUR450 million.
"Business activity in the first two months of the quarter was healthy. As the impact of the Covid-19 crisis rapidly intensified towards the end of the quarter, a significant amount of new business was postponed," the company said.
Operating profit in the first quarter increased to EUR1.21 billion on year, SAP said, mainly due to a lessened hit from restructuring expenses and share-based compensation expenses.
The company said it had revised the outlook for the full-year to reflect the estimated impact of the coronavirus crisis on the second quarter.
On an adjusted basis, total revenue is now expected to be in a range of between EUR27.8 billion and EUR28.5 billion at constant exchange currencies from previous estimates of between EUR29.2 billion and EUR29.7 billion. Adjusted revenue in the cloud and software segments is estimated to be between EUR23.4 billion and EUR24 billion from a previously estimated range of EUR24.7 billion to EUR25.1 billion.
The company is scheduled to release first-quarter results on April 21.
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