Dive Brief:
- SAP released its third quarter results ahead of schedule, reporting a 19% rise in operating profit, Reuters reports.
- The company said its cloud subscriptions and support revenue doubled in the third quarter.
- SAP specializes in business applications ranging from accounting to human resources to supply-chain management.
Dive Insight:
SAP said third-quarter operating profit rose to $1.84 billion, beating average analyst estimates by a significant margin. SAP attributed the uptick to growth in its mature markets.
"Our strong double-digit growth in cloud and software revenue was mainly driven by excellent results in mature markets," SAP's Chief Financial Officer Luka Mucic said.
Third-quarter total revenue reached 4.98 billion euros.
SAP’s announcement was a bright spot for tech, as several other companies have announced slower sales, lower profits and even layoffs. Mucic did note that he expects continued volatility and economic challenges for SAP in emerging markets.
