SAP goes from profits to losses of 828 million in the first quarter of 2024
German enterprise software company SAP reported a loss of 828 million euros in the first quarter of 2024, compared to a profit of 479 million euros in the same period of 2023, the multinational said.
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Economia Resultados
The German company's accounts reflect the adverse impact of €2.2 billion recorded in the first quarter as a restructuring provision to cover the vast majority of the costs associated with the restructuring plan announced in January by the multinational, which affects around 8,000 jobs.
SAP's revenue between January and March totalled €8,041 million, an increase of 8%, of which cloud revenue grew by 24% to €3,928 million, while software licenses and support invoiced €3,031 million, down 5%.
"We are having an excellent start in 2024 and are confident that we will achieve our goals for the year," said SAP CEO Christian Klein.
For 2024, SAP expects cloud revenue to range between €17 billion and €17.3 billion, an advance of between 24% and 27% at constant exchange rates.
The company remains confident in achieving an operating profit of between €7.6 billion and €7.9 billion, an increase of 17% to 21%, with free cash flow of approximately €3.5 billion, above the €5.09 billion in 2023.
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