SAP posted 2017 results on the lower side of market expectations after Chief Executive Bill McDermott had promised a "dynamite" final quarter in its cloud business, as Europe's top
technology company announced a $2.4 billion U.S. acquisition.
Fourth-quarter non-IFRS operating profit rose by 6 percent in constant currency terms to 2.37 billion euros ($2.93 billion), compared to average analyst expectations of 2.41 billion euros, according to a poll of 16 analysts by Thomson Reuters.
But executives of the German software giant said the company had turned the corner during the quarter and expected to begin to see sustained margin improvements during 2018.
"I'm happy to tell you that new cloud bookings surged 31 percent in Q4," CEO Bill McDermott told journalists on a conference call, adding that SAP was gaining market share against rivals purely focused on cloud-based software.