RTTNews | Jul 21, 2021 01:27AM EDT

01:26 Wednesday, July 21, 2021 (RTTNews.com) - SAP SE (SAP) reported that its second-quarter profit after tax rose 64% to 1.45 billion euros from 885 million euros in the previous year.

Earnings per Basic share increased 57% year-over-year to 1.15 euros and increased 50% to 1.75 euros on non-IFRS basis reflecting another outstanding contribution from Sapphire Ventures.

But operating profit declined 23% year-over-year to 984 million euros, due to higher share-based compensation expenses primarily related to Qualtrics.

Total revenue for the quarter declined 1 % to 6.67 billion euros from 6.74 billion euros in the prior year.

SAP raised its full-year 2021 outlook, reflecting the strong business performance which is expected to accelerate cloud revenue growth. The company continues to expect a software licenses revenue decline for the full year as more customers turn to the 'RISE with SAP' subscription offering for their mission-critical core processes.

SAP now expects annual operating profit, at constant currencies, to be in the range of 7.95 billion euros - 8.25 billion euros, flat to down 4% at constant currencies. The previous range was 7.8 billion euros - 8.2 billion euros at constant currencies.

The company now projects annual cloud revenue at constant currencies of 9.3 billion euros - 9.5 billion euros, up 15% to 18% at constant currencies. The previous range was 9.2 billion euros - 9.5 billion euros at constant currencies.

The company expects 23.6 billion euros - 24.0 billion euros cloud and software revenue at constant currencies, up 2% to 3% at constant currencies. The previous range was 23.4 billion euros - 23.8 billion euros at constant currencies.

SAP continues to expect operating cash flow of approximately 6.0 billion euros and free cash flow above 4.5 billion euros.

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