SAP has raised its full-year outlook on strong cloud performance as customers increasingly move their business to the cloud.
The global pandemic has accelerated many companies’ migration to the cloud, especially as workers have transitioned to remote and hybrid workflows. Many companies, including SAP, have benefited greatly.
After its third-quarter review, SAP is now revising its full-year outlook, raising it as a result of its cloud performance. The company says its current cloud backlog is up 24% and its cloud revenue is up 20%. SAP now expects its cloud and software revenue to grow 2% to 4%.
“Our strategy is clearly working,” said Christian Klein, CEO. “Customers are choosing SAP for their business transformation in the cloud. We see record adoption of our applications and our platform. This has resulted in strong acceleration of our cloud growth.”
“This has been an excellent quarter across all key financial metrics,” added Luka Mucic, CFO. “We are seeing sustained, strong progress in SAP’s transformation. Our cloud business is growing at an accelerating pace and has led to our improved full year outlook.”