business software manufacturer SAP Ltd reported first-quarter revenue on Friday that exceeded analysts’ expectations, supported by growth in its cloud business, but slashed its outlook for the year due to the divestment of its Qualtrix unit.
SAP, which announced plans to cut 3,000 jobs in January as it looked to cut costs, expects no further restructuring this year and plans to use artificial intelligence techniques such as generative oh in its products.
While tough economic conditions have troubled large technology companies, SAP still grew 10 percent to 7.44 billion euros (roughly Rs. 60,700 crores) in the first quarter, beating the consensus provided by the company.
said to be working with Microsoftsupported OpenAIchatbot of chatgpt Which can provide human-like response to questions.
We’ve been studying ChatGPT for a long time…we’ve built over 50 oh use cases, embedding them with our technology,” CEO Christian Klein said in an interview. Those use cases will be available to customers next month at its annual Sapphire conference, he said.
Klein said SAP also has an internal committee made up of customers, researchers and analysts to investigate AI use cases for bias and guard against potential misuse of the technology.
Revenue from SAP’s lucrative cloud business grew 24 percent year-over-year, broadly in line with consensus. SAP has already discounted the profits of subsidiary Qualtrix, which it divested, from its ongoing earnings report last month.
For the year, SAP expects non-IFRS operating profit of 8.6 million euros – 8.9 billion euros (roughly Rs. 70 crore to Rs. 73 crore), compared to 200 million euros (roughly Rs. 1,600 crore). Cloud revenue estimates have declined from 1.3 billion euros (roughly Rs. 10,700 crores) to 14 and 14.4 billion euros (roughly Rs. 1,14,900 crores to Rs. 1,18,100 crores).
“The underlying guidance remains essentially unchanged, although updated to reflect the settlement of Qualtrics,” analysts at Jefferies wrote in a client note.
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