What happened
Shares of SAP (SAP 0.38%) popped on Wednesday, rising as much as 13.4%. The stock's gain follows the business intelligence software company's first-quarter update, which included better-than-expected top- and bottom-line results. Shares are up 11.3% as of 12:56 p.m. EDT.
Management also said it is initiating a review of its business to help drive long-term growth.
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So what
SAP reported non-IFRS earnings per share of 0.90 euros ($1.02) on revenue of 6.1 billion euros ($6.92 billion), exceeding analysts' consensus estimates for non-GAAP EPS and revenue of $0.95 and $6.67 billion, respectively.
Highlighting the company's momentum, revenue was up 16% year over year. Additionally, cloud revenue surged 45% year over year.
"I am extremely pleased that we delivered rapid growth in the cloud and a rock-solid core," said CFO Luka Mucic in the company's first-quarter earnings release.
Now what
SAP also announced that on Nov. 12, 2019, management will share "details of several new initiatives to accelerate operational excellence and value creation." The company is forming a special executive board committee to help oversee an operational review focused on driving "growth, innovation, and efficiency."
SAP explained: "Over the next five years, SAP will significantly increase its investment in core product areas and empower its leadership team to drive faster development cycles and speed of execution."
