Shares of SAP (NYSE:SAP) 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.
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.
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."