German software maker SAP's quarterly cloud revenue surges 24%
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April 22 (Reuters) -SAP SAPG.DE reported a 24% jump in first-quarter cloud revenue to 3.93 billion euros ($4.19 billion) on Monday, buoyed by demand for its enterprise resource planning software.
The lucrative cloud business is the main growth driver for the German firm, which recently said it would spend 2 billion euros on a restructuring programme involving 8,000 jobs to either retrain employees with AI skills or to replace them through voluntary redundancies.
ERP software is used by companies to manage key business operations ranging from accounting to supply chain management and caters mostly to business clients.
SAP, one of Europe's biggest tech firms, recorded a quarterly operating loss of 787 million euros, owing to a 2.2 billion euro provision to cover expenses related to the restructuring programme.
The company reaffirmed its outlook for 2024 with cloud revenue expected between 17-17.3 billion euros.
($1 = 0.9390 euros)
Reporting by Kanjyik Ghosh in Bengaluru and Andrey Sychev; Editing by Shilpi Majumdar and Sriraj Kalluvila
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