SAP, a business software maker, has reported Q1 revenue that exceeded analysts’ expectations due to growth in its cloud business. However, the company lowered its outlook for the year because of the divestment of its Qualtrics unit.
SAP plans to incorporate artificial intelligence technologies such as generative AI into its products and has been working with OpenAI’s chatbot, ChatGPT.
SAP’s CEO, Christian Klein, stated that the company has built over 50 AI use cases that will be available to customers after the annual Sapphire conference. Additionally, SAP has an internal committee to check for biases in AI use cases and guard against potential misuse of the technology.
Although SAP has discounted Qualtrics’ profits from its current earnings report, revenue from its cloud business grew 24% YoY. For the year, SAP expects non-IFRS operating profit in the range of 8.6 to 8.9 billion euros and cloud revenue of between 14 billion and 14.4 billion euros.
Jefferies analysts wrote in a client note that underlying guidance is essentially unchanged, although updated to reflect the disposal of Qualtrics.
