SAP Faces Contract Delays as Cloud Revenue Growth Slows, Shares Decline
SAP’s cloud revenue growth has slowed as customers in key sectors delay contract decisions, according to recent financial reports. The software giant’s shares declined as executives acknowledged elongated sales cycles affecting near-term performance.
Cloud Revenue Growth Disappoints
SAP’s cloud revenue growth has reportedly fallen short of analyst expectations, with the company acknowledging that customers in manufacturing and public sectors are taking longer to sign contracts. According to the company’s latest financial results, cloud revenue reached €5.29 billion in the third quarter, representing 22 percent year-on-year growth but falling below the €5.33 billion that analysts had projected.