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SAP lowers FY20 outlook (NYSE:SAP)

SAP’s (NYSE:SAP) software license revenue was down 31% Y/Y in Q1, which ended on March 31.

The company says the first two months of the period had healthy activity, but the coronavirus pandemic postponed a “significant amount” of business at quarter’s end.

Total revenue was up 5%, and cloud revenue grew 25% Y/Y in constant currency.

SAP incurred a charge of €36M due to the cancellation of its in-person events.

FY20 outlook update: Cloud revenue is expected between €8.3B to €8.7B compared to the prior €8.7B to €9.0B. SAP sees total revenue of €27.8B to €28.5B (was: €29.2B to €29.7B) and operating profit of €8.1B to €8.7B (was: €8.9B to €9.3B).

SAP will report Q1 results on April 21.