Shares of SAP (NYSE:SAP) shares crashed Monday morning after the company announced its results for the third quarter of fiscal 2020 on Sunday. The software maker reported total revenue of 6.54 billion euros and profit per share of 1.32 euros.
Here are some other important numbers from the SAP stock earnings report:
- Earnings per share were 26% higher at €1.04 in the third quarter of fiscal 2019.
- Turnover fell by 4% compared to 6.79 billion euros last year.
- Cloud revenue jumped 11% year-on-year, from €1.79 billion to €1.98 billion.
- Operating profit of 1.47 billion euros was down 12% from 1.68 billion euros in the same period last year.
SAP CEO Christian Klein had this to say about the company’s earnings:
“COVID-19 has created an inflection point for our customers. The move to the cloud associated with a real business transformation has become a must for companies, to gain resilience and position themselves to emerge stronger from the crisis. Together with our customers and partners, we will co-innovate and reinvent the way businesses operate in a digital world. SAP will accelerate cloud growth to more than 22 billion euros in 2025 and bring the share of more predictable revenues to around 85%”.
Regarding the outlook for fiscal year 2021, SAP said the novel coronavirus pandemic will have a negative effect on business. In fact, it “is expected to impact the demand environment, particularly in hard-hit industries, at least through the first half of 2021.” In turn, the company cut its revenue outlook for total revenue, operating profit and certain business segments.
SAP stock was down nearly 23% on Monday afternoon.
As of the date of publication, Nick Clarkson had (neither directly nor indirectly) any position in the securities mentioned in this article.
Nick Clarkson is a web editor at InvestorPlace.