SAP lowers cloud revenue forecast after demand slows in 2Q

(Reuters) – German business software maker SAP on Thursday slashed its full-year sales forecast for key cloud services due to lower-than-expected second-quarter operating revenue.

The company posted a 5% revenue increase in the second quarter, in line with market expectations.

Cloud services revenue in the second quarter was €3.3 billion, below the company’s consensus median estimate of €3.4 billion, and total revenue reached €7.55 billion, compared to a median estimate of €7.6 billion.

SAP lowered its full-year cloud revenue forecast to €14.0-14.2 billion ($15.59-15.81 billion) from €14.0-14.4 billion and slightly raised its non-IFRS operating income forecast to €8.65-8.95 billion from €8.6-8.9 billion.

($1 = €0.8980)

The original message in English is available under the code: (Anna McKenzie and Andrey Sychev)