Enterprise software company SAP AG, which competes with Oracle, said its revenue rose 2 percent to €4.045 billion in the third quarter of 2013.
The German software major’s third quarter profit increase 23 percent to €762 million ($1.036 billion).
Rapid growth in its cloud computing business and initiatives to down costs contributed to growth in profit, SAP said on Monday.
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 from €63 million. Cloud 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.
SAP said software and Cloud subscription revenue increased 13 percent to €1.17 billion.
The software major posted triple-digit year-over-year growth in cloud subscription and support revenue and annual cloud revenue run rate now exceeds €1 billion.
Bill McDermott and Jim Hagemann Snabe, Co-CEOs of SAP, said: “We now are the second largest enterprise cloud company with an annual cloud revenue run rate exceeding €1 billion. We continue to gain market share and grow significantly faster than our primary competitor in all regions.”
SAP HANA, the platform for real-time business applications, grew 90 percent to €149 million and over 2,100 customers.
The Americas region revenue rose 17 percent.
The EMEA region revenue increased 14 percent. Software revenue in EMEA grew double-digit driven by strong double-digit growth in the Netherlands, Switzerland and the U.K.
Asia Pacific Japan (APJ) region marked a return to growth with solid single-digit growth, driven by a strong performance in China.
SAP affirmed its outlook for 2013 operating profit of €5.85-5.95 billion ($8.01-8.18 billion) at constant currencies, up 12-14 percent from €5.21 billion in 2012.
It also expects revenues from software and software-related services to rise at least 10 percent this year