SAP (NYSE: SAP) ended the year 2015 with a bang, surpassing all market expectations and causing its stock to touch 52-week high levels. But if the market was expecting a similar performance for the first quarter of the year, it was disappointed. The company reported rather lackluster results, following the footsteps of most of the other tech giants. Its recent investments in the Cloud and Mobile space are expected to improve its performance.

SAP’s Financials

SAP’s reported first quarter revenues of €4.73 billion (~$5.21 billion) and an EPS of €0.64 (~$0.70). The market was looking for revenues of €4.82 billion (~$5.31 billion) and an EPS of €0.69 (~$0.76). The company blamed the shortfall in revenues to a delay in the Americas on the closure of deals. It claimed that deals that should have been signed during the quarter got pushed out to April of the year, thus leading to lower revenue in the first quarter and improving visibility of revenues in the current quarter.

By segment, Cloud and Software business grew 5% to €3,850 million (~$4,246.2 million). The growth was driven by a 35% increase in Cloud Subscriptions & Support revenues, which accounted for €677 million (~$746.7 million) in revenues. Software licenses and support revenues were flat at €3,172 million (~$3,498.4 million). SAP’s services revenue grew 4% over the year to €877 million (~$967.2 million). SAP HANA continued to attract new customers. During the quarter, SAP added 500 new customers which included names like Benetton, Norton Rose Fulbright, Beiqi Foton Motor, and Huaxin Cement.

For the current year, SAP expects non-IFRS cloud subscriptions and support revenues in the range of €2.95 billion-€3.05 billion (~$3.25 billion-$3.35 billion) on a constant currency basis. Overall it expects to end the year with non-IFRS operating profits of €6.4 billion-€6.7 billion (~$7.04 billion-$7.38 billion) on a constant currency basis.

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