Shares in SAP dropped sharply on Tuesday after the world’s leading business software maker rolled back its profit target by two years as it invests in its web-based cloud business.
SAP’s operating profit margin goal of 35 per cent of sales will likely be reached by 2017 instead of the previously forecast of 2015, the German-based group said.
“Based on our strong global momentum from 2013 we will accelerate the transition to the cloud by offering customers choice,” said SAP co-chief executives Bill McDermott and Jim Hagemann Snabe.
Total revenues are expected to reach at least 22 billion euros ($ 29.8 billion) by 2017, with between 3-3.5 billion euros expected to be generated by its in demand cloud business, SAP said.
Shares were down 1.4 per cent at 59.83 euros on the Frankfurt Stock Exchange after falling by more than 2 per cent during opening trading.