SAP Q1 results fall short of Wall Street estimates as transformation kicks off

April 22, 2024 4:58 PM EDT -- SAP reported Monday fiscal first-quarter results that missed on both the top and bottom lines as the software company kicked off its transformation to take advantage of the artificial intelligence revolution.

SAP SE ADR (NYSE: SAP) fell 0.4% in afterhours trading following the report.

For the three months ended Mar. 31, the company reported adjusted earnings of €0.81 per share, down from €0.83 a share on revenue of €8.04M, up from €7.44B. That was ahead of analyst estimates of €1.04 on revenue of €8.03B.

Cloud revenue jumped 24% to €3.93B in Q1 year on year.

The weaker results come despite a jump in cloud revenue as the company kicked off the implementation of its transformation program, strengthening its investments on the business AI opportunity.

The company reiterated its outlook for 2024, forecasting cloud revenue of €17.0B to 17.3B and adjusted operating between €7.6 and €7.9 billion.

SAP declared a dividend of €2.20 per share for fiscal year 2023, up 7% compared to the regular dividend paid for fiscal year 2022.

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