The German software group – SAP - shares plummeted 21% after lower-than-expected Q3 numbers. Following the announcement, SAP lost €25 billion of its market #cap, dropping to €100 billion. For SAP, this marks the most significant intraday drop since 1999.
For the #Q3 2020, SAP reported revenues of €6.54 billion, below the €6.89 expected by the market. At the same time, its operating profit came in 12% lower compared to last year’s figures of €2.07 billion.
According to the company, the #pandemic negatively impacted the demand for its services. The lockdowns will continue to affect the business relations and customer management software sectors through 2021. Also, SAP plans to put its heart a soul in cloud computing services.
Now, SAP expects its revenues to come in at €27.2 billion, below the previously touted €28.5 billion. The operating profit has also been revised from the €8.7 billion expected to €8.1 billion. The profit is expected to reach a high of €8.5 billion.
Read more quarterly reports on CAPEX.com!
Sources: Bloomberg.com, cnbc.com