FRANKFURT — Business management software company SAP AG says net profit rose 23 percent in the third quarter as its cloud computing business grew rapidly and the company kept down costs by holding down hiring of new employees.
The company, based in Walldorf, Germany, said Monday that net profit rose to 762 million euros (US$1.036 billion). Revenues grew 2 percent to 4.045 billion euros.
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 software to manage customer companies’ business functions, but the company says it is the key to the industry’s growth.