By Kelly Cloonan

SAP posted higher revenue and operating profit for the first quarter and maintained its guidance for the year.

Reporting on a non-IFRS basis, the business-software company said total revenue rose to 9.01 billion euros compared with 8.04 billion euros in the prior-year period. Sales from SAP's core cloud business rose to 4.99 billion euros from 3.93 billion euros.

Net income rose to 1.68 billion euros from 944 million euros. Operating profit--a closely watched metric for software companies--rose to 2.46 billion euros from 1.53 billion euros.

Analysts had forecast total revenue of 9.10 billion euros, cloud revenue of 5.06 billion euros and an operating profit of 2.22 billion euros, according to a non-IFRS consensus provided by the company.

SAP, like other European software companies, presents its figures as two sets of numbers. One set is based on the International Financial Reporting Standards--an international accounting method that seeks to provide a global reporting standard--though analysts and investors tend to follow SAP's non-IFRS numbers, which exclude restructuring expenses and acquisition-related charges.

For the year, SAP continues to expect non-IFRS operating profit between 10.3 billion euros and 10.6 billion euros, cloud revenue ranging from 21.6 billion euros to 21.9 billion euros and free cash flow of roughly 8 billion euros.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

April 22, 2025 16:33 ET (20:33 GMT)

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