SAP shares fell 4% as the German software company cut its profit estimates for the year due to charges related to the war in Ukraine.
The company downgraded 2022 adjusted earnings estimates to 7.6-7.9 billion euros from 7.8-8.25 billion euros, while affirming revenue estimates.
The German company cited a €350m impact on adjusted earnings in constant currency from the war in Ukraine, and a potential drop in software license revenue.
Revenue from the company’s cloud operations rose 34% to 3.06 billion euros in the quarter.
The current cloud backlog, which captures new business, rose 34% to €10.4 billion.
Total revenue for the quarter rose to 7.52 billion euros in constant currency from 7.08 billion euros. Analysts had expected 7.32 billion euros.
Adjusted earnings per share came in at 28 cents versus estimates of 44 cents, mainly due to a lower contribution from investments in venture capital firm Sapphire Ventures.
The contribution from the said company decreased by 1 billion Euro, from the previous year.
Source: Capital
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