Christian Klein, CEO, SAP. Photo credit: World Economic Forum, licensed under CC BY-NC-SA 2.0

German software giant SAP has updated its revenue forecast for this year, now expecting adjusted revenue of between €27.2 – 27.8 billion ($32.3 – $33 billion) compared to a previous forecast of €27.8 – 28.5 billion ($33 – $33.8 billion). For the year, the company expects an operating profit ranging from €8.1 – 8.5 billion ($9.6 – $10.1 billion) compared to previous estimates of €8.1 – 8.7 billion ($9.6 billion – $10.3 billion).

Although SAP predicts lower annual revenue, the company is, on the other hand, expecting increased cash flow, raising its forecast to €6 billion ($7.1 billion) compared to a previous €5 billion+ ($5.9 billion+) estimate. The company blames its lowered revenue forecast on the Covid-19 situation. It seems that SAP’s previous forecast banked on economies reopening widely as at this moment but which isn’t exactly the case now.

SAP’s business has been significantly affected by the Covid-19 pandemic, particularly the company’s SAP Concur travel management software suite. The German software giant is being led through the pandemic by its newish CEO Christian Klein, who became SAP’s sole CEO just in April this year. 

In addition to this year, SAP says it expects the coronavirus pandemic to also affect demand for its software through “at least” the first half of 2021.

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