By Mauro Orru

SAP SE said Friday that net profit for the fourth quarter of 2020 fell year-on-year, while it confirmed declines in operating profit and revenue as pre-announced earlier this month.

Reporting on a non-IFRS basis, the German software company said fourth-quarter net profit slipped to 2 billion euros ($2.42 billion) from EUR2.17 billion for the fourth quarter of 2019.

The company said earlier this month that operating profit fell to EUR2.77 billion from EUR2.84 billion, with operating margin rising to 36.7% from 35.3%.

Total revenue fell to EUR7.54 billion from EUR8.05 billion as pre-announced, with cloud revenue rising to EUR2.04 billion from EUR1.91 billion but software-licenses revenue declining to EUR1.70 billion from EUR2 billion.

SAP also reiterated guidance for 2021 issued earlier in the month, projecting non-IFRS operating profit at constant currencies between EUR7.8 billion and EUR8.2 billion. Non-IFRS cloud revenue at constant currencies for the year should come in between EUR9.1 billion and EUR9.5 billion, while non-IFRS cloud and software revenue at constant currencies should be between EUR23.3 billion and EUR23.8 billion, it said.

"SAP's expedited shift to the cloud will drive long-term, sustainable growth while significantly increasing the resiliency and predictability of our business," Chief Financial Officer Luka Mucic said.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

01-29-21 0123ET