JAKARTA - Business software maker, SAP, on Friday 21 April reported first-quarter earnings above analyst expectations, supported by cloud business growth but lowered views for the year due to its Qualtrics unit release.
The SAP, which announced in January plans to cut 3,000 workers while looking for ways to cut costs, did not anticipate further restructuring this year and plans to use artificial intelligence technologies such as the AI's generative in its products.
Despite the more difficult economic conditions that have disrupted major tech companies, the SAP could still increase its revenue by 10% in the first quarter to 7.44 billion euros (Rp123.3 trillion), beating the consensus provided by the company.
SAP said it was working with chatbot ChatGPT from OpenAI backed by Microsoft Corp which could provide human-like responses to questions.
"We've been studying ChatGPT for a long time... we've been building more than 50 cases of AI use, embedding it with our technology," said SAP CEO Christian Klein, in an interview quoted by Reuters. The use case will be available to customers next month after Sapphire's annual conference.
"SAP also has internal committees with customers, researchers and analysts to examine bias in AI use cases and keep the technology from being misused," Klein said.
Revenue from the cloud business that benefits SAP grew 24% YoY, in line with consensus. SAP has reduced profits from its subsidiary Qualtrics, which was released last month, from its current profit report.
For this year, SAP estimates non-IFRS operating profit in the range of 8.6-8.9 billion euros, 200 million euros less than before. The forecast for cloud revenue looks down by 1.3 billion euros to between 14 and 14.4 billion euros.
"The underlying duo is essentially unchanged, although updated to reflect Qualtrics' release," wrote analyst Jefferies in his client's notes.
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