Dow Jones Newswires: SAP reports 28% profit jump, backs guidance

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SAP SE on Monday reported a significant rise in third-quarter net profit and revenue, and reiterated its guidance for the full year.

Net profit in the period rose 28% to 1.25 billion euros ($1.40 billion) from EUR971 million a year earlier, the German software company said. Revenue for the quarter was EUR7.79 billion, up 13%, while SAP’s SAP, +0.41% SAP, +1.23%  closely watched revenue from cloud subscriptions and support increased by 37% to EUR1.79 billion.

SAP had already reported some preliminary figures for the quarter earlier in the month, when it said that Bill McDermott, then chief executive, would step down. Executive board members Jennifer Morgan and Christian Klein were named co-CEOs at the time.

The company reiterated its full-year guidance, continuing to expect non-IFRS cloud revenue of between EUR6.7 billion and EUR7.0 billion at constant currencies and non-IFRS operating profit between EUR7.85 billion and EUR8.05 billion at constant currencies.

The company said it expects total revenue to increase strongly in the full year at a rate lower than operating profit.