SAP posted better-than-expected revenue growth for the second quarter, but profit fell short of estimates as the German enterprise software company’s transition to a cloud-based business model accelerated faster than expected, while a decision to exit Russia impacted earnings.
For the quarter, SAP (ticker: SAP) reported total revenue of €7.5 billion, up 13%, or 5% in constant currencies. It’s worth noting that unlike U.S.-based technology companies, which are seeing fierce headwinds from the appreciation of the dollar, SAP is seeing a huge tailwind as the value of each dollar collected translates into more euros. The company’s cloud software business in particular received a 10-percentage-point currency boost in the quarter.
SAP shares traded in Germany were falling 2.8% on Thursday. U.S.-listed shares fell 3.1%.
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