The headquarters of SAP AG, Germany's largest software company, on Jan. 8, 2013, in Walldorf, Germany.SAP on Wednesday posted a 58% year-on-year jump in first-quarter operating profit in constant currency, also confirming its outlook for full-year cloud revenues.SAP's operating profit hit 2.5 billion euros ($2.9 billion) in the first quarter, compared with analysts expectations near 2.2 billion euros, according to LSEG data.Shares of the company popped 9.3% by 8:59 a.m. in London on Wednesday.The German sof ...

Group 1 - U.S. stocks have consistently held a significant valuation premium over European stocks, attributed to the notion of "American exceptionalism" and the perception of stagnant growth in the Eurozone [1] - The article highlights the ongoing disparity in market performance between U.S. and European equities, suggesting that this trend may continue due to differing economic conditions [1] Group 2 - Gary Alexander has extensive experience in the technology sector, having worked on Wall Street and in Silicon Valley, which informs his insights into current industry trends [2] - His contributions to financial discussions have been recognized across various platforms, including popular trading apps, indicating a broad influence in the investment community [2]

Financial Data and Key Metrics Changes - Current cloud backlog increased by 29% to €18.2 billion in Q1 [5][37] - Quarterly cloud revenue grew by 26%, approaching the €5 billion mark [5][37] - Total revenue rose by 11% to €9 billion [42] - Operating profit surged by 58% to €2.5 billion, significantly exceeding the guidance for the year [41][45] - Cloud gross margin improved by 2.6 percentage points to 75% [6][40] Business Line Data and Key Metrics Changes - Cloud ERP suite revenue maintained high growth momentum with a 33% increase in Q1, accounting for 85% of total cloud revenue [37] - Software licenses decreased by only 10%, indicating resilience despite being a smaller quarter [38] - Approximately half of cloud order entries included AI use cases, reflecting strong demand for AI integration [13] Market Data and Key Metrics Changes - Strong cloud revenue performance noted in APJ and EMEA regions, with Brazil, Germany, and India showing outstanding results [40] - The Americas region also demonstrated robust performance, with notable strength in Canada and the US [40] Company Strategy and Development Direction - Company emphasizes a suite-first, AI-first approach to expand its offerings [36] - Focus on product innovation, particularly with the launch of Business Data Cloud, which aims to unify and govern business data [22][23] - Continued investment in AI and cloud solutions to enhance customer productivity and reduce implementation costs [30][31] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in the company's resilience despite high market uncertainty [9][45] - The pipeline for the year remains solid, with no significant deterioration in conversion rates observed [56] - Management acknowledges potential risks from geopolitical tensions and trade disputes but maintains a positive outlook for long-term growth [44][120] Other Important Information - The company plans to provide deeper insights into its growth strategy at the upcoming Sapphire event in May [34][47] - The transformation program concluded in 2024, positioning the company for focused investments in key areas [36] Q&A Session Summary Question: Current trading and confidence in cloud revenue guidance - Management noted strong customer engagement and resilience in supply chains, which supports confidence in cloud revenue guidance despite macro uncertainties [52][56] Question: Deceleration in cloud revenue growth - Management explained that the deceleration was influenced by the timing of cloud deals and expected a rebound in Q2 as these deals ramp up [58][62] Question: Current cloud backlog performance - Current cloud backlog performance was in line with expectations, with no significant changes in customer dynamics despite tariff uncertainties [68][71] Question: Product innovation and Business Data Cloud differentiation - Management clarified that Business Data Cloud offers a more comprehensive solution than the previous SAP Datasphere, enabling better data integration and AI capabilities [78][83] Question: Impact of tariffs on business and cloud margins - Management indicated that while tariffs could impact hardware costs, the company's multi-cloud strategy provides price security and mitigates risks [130][132]

First Quarter 2025 Results Christian Klein, CEO Dominik Asam, CFO April 22, 2025 Public First Quarter 2025 Results Presentation | April 22, 2025 Safe Harbor Statement During this presentation we will make forward-looking statements which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional in ...

Core Insights - SAP's Q1 2025 results demonstrate strong financial performance, with total revenue increasing by 12% to €9.01 billion, driven by a 27% rise in cloud revenue [4][5][8] - The current cloud backlog reached €18.2 billion, reflecting a growth of 28% year-over-year, indicating robust demand for SAP's cloud solutions [5][7] - The company maintains a resilient business model with 86% of revenue being more predictable, showcasing stability in uncertain market conditions [2][8] Financial Performance - SaaS/PaaS revenue grew by 30% to €4.89 billion, with Cloud ERP Suite revenue up 34% to €4.25 billion [4][5] - Operating profit surged to €2.33 billion, a significant increase from a loss of €787 million in Q1 2024, highlighting effective cost management and operational efficiencies [4][10] - Basic earnings per share rose to €1.52, compared to a loss of €0.71 in the previous year, reflecting improved profitability [11] Cash Flow and Share Repurchase - Operating cash flow increased by 31% to €3.78 billion, while free cash flow rose by 36% to €3.58 billion, driven by higher profitability [12] - As of March 31, 2025, SAP repurchased shares worth approximately €3.1 billion under its €5 billion share repurchase program [13] Strategic Initiatives - The 2024 Transformation Program aimed at enhancing operational scalability and strategic growth areas concluded successfully, with total expenses of approximately €3.2 billion [14] - SAP's "RISE with SAP" initiative continues to attract global customers, indicating strong market acceptance of its cloud solutions [15][18] Market Outlook - SAP anticipates a slight deceleration in current cloud backlog growth for 2025, reflecting the dynamic and uncertain market environment [21] - The company projects cloud revenue growth at constant currencies to be between 26% to 28% for 2025, indicating continued optimism despite market challenges [23]

SAP SE (SAP) is scheduled to post results for the first quarter of 2025 on April 22.The Zacks Consensus Estimate for first-quarter 2025 earnings has moved south 1 cent in the past 60 days and is pegged at $1.38 per share. The consensus mark implies a 56.8% increase from the year-ago reported actuals. The Zacks Consensus Estimate for first-quarter 2025 revenues is currently pegged at $9.68 billion, indicating a 10.87% uptick from the year-ago figure.SAP's earnings surpassed the Zacks Consensus Estimate in th ...

Group 1 - The article discusses a long-term, contrarian approach to equities investing, with a focus on the Tech, Commodities, and Energy sectors as the world undergoes an energy transition [1] Group 2 - No specific company or stock positions are disclosed, indicating a neutral stance on investment recommendations [2][3]

Delray Beach, FL, April 03, 2025 (GLOBE NEWSWIRE) -- The worldwide Customer Information System (CIS) Market is poised for substantial expansion, expected to reach a compound annual growth rate (CAGR) of 12.8%. The market, valued at approximately USD 1.79 billion in 2025, is anticipated to grow to USD 3.26 billion by 2030, according to a new report by MarketsandMarkets™. Rising digital transformation initiatives are fueling the growth of the customer information system (CIS) market. Utilities and service pro ...

PARIS and MUNICH, April 2, 2025 /PRNewswire/ -- Nagarro, a global leader in digital engineering, announced today the business transfer of Notion Edge France, an SAP gold partner specializing in the SAP Customer Experience (CX) suite. The strategic transfer of business expands Nagarro's CX offerings to key players in retail, CPG, manufacturing, and other sectors in France. The transfer also enables wider access to the African market while reinforcing Nagarro's market position in Europe.Notion Edge (NE) Franc ...

A general view of the headquarters of SAP AG, Germany's largest software company on January 8, 2013 in Walldorf, Germany. Thomas Lohnes | Getty Images News | Getty ImagesSoftware-maker SAP became Europe's most valuable company this week, riding a wave of artificial intelligence enthusiasm and German stock market gains.The company had a market capitalization of around $342.4 billion by Monday's close, according to FactSet data, with shares up 1.16% on the day and up more than 40% over the last year.SAP, whic ...