Shares of SAP rose nearly 4% in premarket trading Friday after the company’s cloud business propelled it to a first-quarter expectations beat.
The business software producer posted revenue of $8.2 billion, up 10% from 2022 and ahead of Street expectations of $8 billion. Cloud revenue led the way with a year-over-year increase of nearly 25%.
SAP also said that the company is working with OpenAI chatbot ChatGPT. This comes after plans to cut 3,000 jobs were revealed in January.
"We were studying ChatGPT for quite a while... we have built over 50 AI use cases embedding it with our technology," CEO Christian Klein said in an interview.
Products featuring ChatGPT will be made available to customers in May following SAP’s annual Sapphire conference, he said.
For the year, SAP projected non-IFRS operating profit between 8.6-8.9 billion euros, 200 million euros lower than prior guidance. The company’s cloud revenue forecast declined 1.3 billion euros to between 14 billion and 14.4 billion euros.
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