SAP’s first quarter of operations under its new co-leadership structure produced a modest return, though concerns over growth of its cloud business left investors cold.

Similar to its third-quarter 2019 numbers, fourth-quarter cloud revenues surged 35% year over year. “We are seeing a huge acceleration into the cloud,” SAP co-CEO Christian Klein told investors during its quarterly results conference call, according to a Seeking Alpha transcript.

The company claimed that the S/4HANA Cloud platform that it unveiled last May had already attracted more than 2,300 customers. The platform also generated a run-rate of more than $500 million in revenues. Its broader S/4HANA platform served more than 13,800 customers at the end of 2019, which was a 24% increase compared to the end of 2018.

SAP also touted the Embrace agreement it struck during the quarter with Microsoft to have the cloud giant resell components of SAP’s Cloud Platform alongside its own Azure cloud service. The deal aims to migrate SAP’s enterprise resource planning (ERP) application and S/4HANA customers from on-premises locations to the public cloud. It will provide those customers with a unified reference architecture for that migration.

However, a modest 1% increase in SAP’s more financially lucrative “software license and support revenue” quelled overall Q4 revenue growth to just 8% year over year. For the full year, total revenues surged 12%, led by a 39% increase in cloud revenues.

SAP also trimmed about 4% from its worldwide workforce, which numbered approximately 95,000 employees at year-end. Most of that was part of a restructuring plan it announced early last year.

Despite the revenue growth, profits dropped. For Q4, earnings were down 2% year over year, while full-year profits were down a more substantial 17%.

“As expected … our cash flow performance in 2019 was likewise impacted by higher restructuring payments, higher share-based compensation payment, and higher tax payments than in 2018,” explained SAP CFO Luka Mucic.

SAP management also placed some of that drop on integration costs associated with its $8 billion acquisition of Qualtrics in late 2018. That deal, which closed early last year, provided SAP with a qualitative component for its platform and has been hyped by the company as a growth engine for SAP moving forward.

Looking ahead SAP narrowed the expected growth rate for its cloud business for 2020, raising the low end of its forecasts but also clipping a bit off the top end. That move left investors a bit cold with the company’s stock price trading down about 2% following release of its latest results.

The quarter was the first for SAP’s new co-leadership team of Christian Klein and Jennifer Morgan. Klein is a 20-year veteran at the company, most recently having served as its COO, while Morgan joined SAP in 2004, and had most recently served as president of the company’s Cloud Business Group.

The duo replaced long-time CEO Bill McDermott, who abruptly resigned at the end of its third quarter last year. According to SAP. McDermott “decided not to renew his contract.” McDermott within weeks re-appeared at ServiceNow as its new CEO.