⁍ SAP SAPG.DE on Sunday cut its guidance for the year and abandoned its forecast that profitability would expand steadily over the medium term.

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⁍ The German business software group said in an ad-hoc release it was shifting strategy to accelerate its push into cloud computing.

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⁍ Separately, SAP released third-quarter results showing a 4% decline in adjusted total revenue.

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– The world’s biggest maker of business software has scrapped plans to grow its profit margins steadily over the next five years and now expects them to be flat through 2023, the AP reports. In a Sunday press release, SAP said it now expects adjusted total revenue to be down 2% to 3% this year, with operating profit down 12% to 13%. The company also cut its guidance for 2020, saying the reimposition of coronavirus lockdowns by some governments had hit its business. “While SAP continues to see robust interest in its solutions to drive digital transformation as customers look to emerge from the crisis with more resilience and agility, lockdowns have been recently re-introduced in some regions and demand recovery has been more muted than expected,” the company said, per Reuters.