FRANKFURT, Germany (AP) — Business management software company SAP AG says net profit rose 23 percent in the third quarter as the company saw rapid growth in its cloud computing business and held down costs.
Net profit rose to 762 million euros ($1.036 billion). Revenues grew 2 percent to 4.045 billion euros. The company said Monday profits grew faster than sales in part because it kept expenses down through restraint in hiring.
Cloud computing revenues more than tripled to 191 million euros from 63 million euros. In cloud computing, companies access software on SAP's computers over the Internet rather than having it installed and maintained on-site — saving them money.
That business remains smaller than SAP's older business selling on-site management software but the company says it is the key to the industry's growth.