SAP has missed its quarterly profit targets after investment in innovation and expansion activities left their mark on the business application vendor's bottom line.
The Germany-based goliath fell short of Wall Street expectations as it posted an operating profit of €1.96bn (£1.63bn) for its fiscal fourth quarter, sparking a 4.6 per cent fall in its share price.
SAP claimed that "continued investments in key innovations as well as the expansion of [its] global go-to-market activities" are to blame.
In Q4, which ended on 31 December, SAP saw its total non-IFRS sales grow 12 per cent to €5.06bn, short of an average analyst forecast of €5.17bn.
Its non-IFRS cloud subscriptions and support revenue rocketed by 1,717 per cent to €342m in its FY12, while its software sales grew by 10 per cent to €4.66bn over the same period.
SAP's co-chief executives Bill McDermott and Jim Hagemann Snabe said 2012 was a record year for the vendor, despite falling short of market targets.
"2012 was an outstanding year where we set many new records. We continued our double-digit growth momentum and exceeded our revenue guidance," they added.
"We achieved a breakthrough in the cloud and today SAP is the second-largest cloud player in the world. And we overachieved on our SAP HANA revenue ambition, making SAP the fastest-growing next-generation database company in the market."
All figures are preliminary and unaudited.
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