SAP SE (NYSE:SAP) stock rose 1.14% (As on Oct 22, 11:18:30 AM UTC-4, Source: Google Finance) after the company in the third quarter of FY 21 has reported 2% increase in the non-IFRS earnings to €1.74 per share ($2.05), due to strong contribution from Sapphire Ventures. Total revenues, on a non-IFRS basis, were €6.845 billion ($8.071 billion), which is up 5% year over year (up 5% at constant currency or cc). Current cloud backlog increased 24% (up 22% at cc) to €8.17 billion. On a non-IFRS basis, Cloud and software business reported revenues (86.3% of total revenues) of €5.91 billion, up 7% year over year (up 6% at cc). Cloud revenues were €2.386 billion, up 20% year over year on a non-IFRS basis (up 20% at cc). Software licenses and support revenues totaled €3.524 billion, down 1% (down 1% at cc) year over year. The company further noted that non-IFRS software licenses revenues of €0.66 billion, declined 8% (down 8% at cc) year over year. Cloud revenues increased 21% at cc to €2.148 billion. Cloud revenues related to Infrastructure as a Service (IaaS) rose 15% year over year at cc to €238 million. Services business (13.7% of total revenues) delivered revenues of €0.93 billion, down 6% from the year-ago quarter’s levels (down 6% at cc). AT&S revenues were up 5% year over year (up 5% at cc) to €5.76 billion. Qualtrics segment revenues rallied 38% (up 39% at cc) to €233 million.

SAP raised 2021 outlook owing to strength in its new cloud business and expectations of macroeconomic improvement stemming from global vaccine rollout. For 2021, SAP anticipates non-IFRS cloud revenues in the range of €9.4-€9.6 billion, which suggests an increase of 16-19% at cc. The company earlier had projected cloud revenues between €9.3 billion and €9.5 billion on a non-IFRS basis, up 15-18% at cc. Non-IFRS cloud and software revenue is now expected between €23.8 billion and €24.2 billion, calling for a 2-4% rise at cc. The company earlier had projected non-IFRS cloud and software revenues in the range of €23.6-24 billion, indicating a 2-3% rise at cc. SAP now projects non-IFRS operating profit at cc in the range of €8.1-€8.3 billion, indicating flat to down 2% at cc. Earlier, SAP guided non-IFRS operating profit in the range of €7.95-€8.25 billion, indicating flat to down 4% at cc.