SAP raises guidance as cloud transformation gathers pace

FRANKFURT (Reuters) – Germany’s SAP said that its cloud revenues grew by 41 percent in the third quarter as its business transformation gathers pace, enabling management to raise guidance for revenues and profits this year.

FILE PHOTO: The logo of German software group SAP is pictured at its headquarters in Walldorf, Germany, May 12, 2016. REUTERS/Ralph Orlowski/File Photo

SAP, Europe’s most valuable tech company, said it now expects revenues to grow by 7.5-8.5 percent in 2018 and operating profits by 9.5-11 percent, its confidence buoyed by a strong order pipeline for the final quarter.

“The future has never been brighter at SAP – we’re fired up and ready to go,” CEO Bill McDermott told reporters on a conference call.

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Reporting by Douglas Busvine; editing by Thomas Seythal