Enterprise software company SAP reported third-quarter earnings and revenue that slightly beat estimates. SAP stock rose as the company raised its 2024 outlook for cloud computing and software revenue.
The Germany-based company reported earnings late Monday.
Third-quarter profit was flat at $1.32 per share on an adjusted basis. Revenue climbed 9% to $9.21 billion. Analysts had estimated adjusted EPS of $1.31 on revenue of $9.17 billion.
Cloud computing revenue rose 25% to $4.7 billion vs. estimates of $4.72 billion. For 2024, SAP said it expects cloud and software revenue growth in a range of 10% to 11%.
SAP reports its own financial metric called Current Cloud Backlog, or CCB. It refers to the amount of revenue a software company expects to recognize in the future from contracts with customers. In Q3, CCB rose 29% to $16.63 billion. Analysts expected CCB growth of 28%, the same as the previous quarter.
SAP Stock Up More Than 50% In 2024
On the stock market today, NYSE-listed SAP stock rose 4.8% to 240.49. SAP stock is up 51% this year.
Heading into the SAP earnings report, analysts expected management commentary on its U.S. federal business.
In addition, SAP recently acquired WalkMe, a digital adoption platform.
Like Oracle, SAP is moving away from software-licenses sales to subscription-based cloud services. Oracle stock has gained 64% in 2024.
Further, SAP stock holds a Relative Strength Rating of 89 out of a best-possible 99, according to IBD Stock Checkup. Also, SAP stock is extended from an entry point of 196.99.
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