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 Cloud revenue for SAP rose by 34 percent—24 percent in constant currency—to about $3.12 billion for the second quarter ended June 30. That represented an increasing portion of total revenue, which reached $7.69 billion for the most recently ended period, up 13 percent over a year ago, 5 percent in constant currency.

During a recent earnings webcast, CEO Christian Klein said the cloud performance was ahead of plan and explained. “In Q2, we hit the major milestone of cloud revenue becoming our largest revenue stream for the first time.” One notable negative impact was the cost of the war in Ukraine to the German software company, about a $357 million-dent to operating profit. However, the company said it was able to absorb much of that so that operating profit fell by roughly $255 million to approximately $1.76 billion, an 11-percent decline. CFO Luka Mucic noted during the webcast that “We will have really digested the impact of the war in Ukraine in Q4.” The decline contributed to an 86-percent fall in net income to roughly $207.3 million from last year’s corresponding period. Mucic said, “In Q3, we're still expecting negative operating profit and then a return to positive operating profit in Q4, making them the room for the return to double-digit growth in 2023.” Mucic also pointed to a slowdown in hiring to 600 additional employees during the quarter, bringing the total hired to 5,500 in additional employees in the last three quarters.

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