SAP slides after cutting full-year guidance

SAP shares tumbled on Monday after the German software company cut its full-year revenue guidance as the Covid-19 pandemic dents demand.

The company now expects €8bn to €8.2bn non-IFRS cloud revenue at constant currencies, down from a previous forecast of €8.3bn to €8.7bn and between €27.2bn and 27.8bn of non-IFRS total revenue at constant currencies, down from previous guidance of €27.8bn to €28.5bn.

"While SAP continues to see robust interest in its solutions to drive digital transformation as customers look to emerge from the crisis with more resilience and agility, lockdowns have been recently re-introduced in some regions and demand recovery has been more muted than expected," it said.

As a result, it also no longer expects a meaningful recovery in SAP Concur business travel-related revenues for the rest of 2020.

SAP said third-quarter total revenue fell 4% to €6.54bn, while operating profit nudged down 1% to €2.07bn. Cloud revenue rose 10% to €2bn, but cloud and software revenue declined 2% to €5.54bn.

At 0915 GMT, the shares were down 18% to €102.98.