SAP, a business software maker, reported first quarter revenue that was above analysts’ expectations and this was backed by growth in their cloud business. However, they did lower their outlook for the year due to the divestment of their subsidiary Qualtrics. This restructuring process did include the cutting of 3,000 jobs, but the company will no longer be restructuring this year. Artificial intelligence technologies such as generative AI are the ones SAP is focusing on to improve their products.
The first-quarter revenue of 7.44 billion euros (USD 8.2 billion) did beat analysts’ consensus. SAP is also working with OpenAI’s ChatGPT, a chatbot that can provide human-like answers to questions. It has built over 50 AI use cases and will make them available to customers next month after their annual Sapphire conference. They also have an internal committee which is responsible for checking the biases inherent in AI and make sure the technology is not being misused.
The cloud business of SAP has grown by 24 percent compared to the previous year and has taken into account the profits from Qualtrics as well. As a final note, their operating profit range for the year has been cut by 200 million euros, although their remaining forecasted guidance for cloud revenue remains unchanged.
SAP is an international company that specializes in enterprise software solutions for businesses. It provides its customers with products that enable digital transformation and intelligent technologies like the SAP cloud platform, SAP HANA, and SAP Concur. It has been in the industry since 1972, resulting in extensive experience and development of their products.
Christian Klein, Chief Executive Officer (CEO) of SAP, is a global executive who has been with the company since 2018. For much of his career he has been leading global organizations, such as his stints at McKinsey & Company and the British healthcare equipment and supplies retailer. In his career he has been successful in leading and driving organisational changes as well as implementing strategies. He joined SAP at a time of transition and has continuously adjusted their strategies and products to develop solutions which meet the sub-industry’s needs.
