German business software group SAP said that fourth-quarter revenue from its cloud computing business jumped 28% as more customers shift their IT operations to its cloud business database.
Cloud revenue climbed to €2.61 billion in the fourth quarter ended December 31, the company reported in a preliminary earnings statement.
SAP is targeting cloud revenue growth of up to 26% in 2022, helping its overall cloud and software revenue rise 4-6%, it said.
"More and more companies are choosing SAP to help them ... build resilient supply chains and become sustainable enterprises as they move to the cloud," chief executive Christian Klein said in a statement.
The company saw a 6% year-on-year increase in total revenue for the quarter ended December to 7.98 billion euros, while adjusted earnings per share rose 10% to €1.86.
SAP is expected to release full results on January 27.
Separately, the company also announced a new €1 billion share repurchase programme, to be carried out in the period between February 1 and December 31, 2022.