FRANKFURT, Germany – Software-maker SAP SE said on Tuesday its net profit for the fourth quarter rose 21 percent, driven by a solid performance of its cloud business, according to a report from Dow Jones.
The German company said net profit for the three months was 1.85 billion euros ($2.29 billion) compared with 1.53 billion euros the year-earlier period.
Total revenue was 6.81 billion euros, up 1 percent.
SAP said bookings for cloud services grew 22 percent in the period, reaching 591 million euros.
Revenue at its cloud business grew 20 percent to 995 million euros.
The software company set its outlook for the full year 2018, which was based on calculations not recognized under international financial reporting standards, according to the Dow Jones report.
It expects non-IFRS operating profit to be between 7.3 billion euros and 7.5 billion euros at constant currencies, and non-IFRS total revenue of between 24.6 billion euros and 25.1 billion euros at constant currencies.
As of Jan. 1, SAP changed several of its accounting policies to apply standard IFRS 15, an accounting standard that sets out guidance for reporting revenue from contracts with customers.
As a consequence, the year-over-year growth of revenue and profit in 2018 will be impacted by the new policies, SAP said.
In another release, the company said that its subsidiary SAP America Inc. has entered into an agreement to acquire CallidusCloud for $36 a share, representing an enterprise value of about $2.4 billion.
The transaction is expected to close in the second quarter, Dow Jones added.