Core Insights - SAP SE has completed the acquisition of SmartRecruiters, aiming to enhance innovation in talent acquisition and provide a comprehensive platform for enterprise hiring needs [1] - The combination of SAP's global scale and SmartRecruiters' AI-powered platform is expected to deliver faster and more effective talent solutions [2][3] - SmartRecruiters is positioned to address both high-volume frontline hiring and corporate recruiting, establishing a new standard in the competitive talent market [3][4] Innovation and Integration - The integration of SmartRecruiters' capabilities into SAP SuccessFactors will improve time-to-hire and enhance user experiences for candidates and hiring managers [6] - SmartRecruiters will continue to operate as a standalone solution while being fully interoperable with SuccessFactors and other HCM systems [6] Market Impact - The acquisition emphasizes the importance of talent acquisition as a central element of enterprise transformation in the AI era [4] - Major organizations, including Amazon, Visa, and McDonald's, utilize SmartRecruiters to optimize their hiring processes, indicating strong market trust [8]

Core Insights - The article discusses a strategic acquisition that combines deep SAP expertise with enterprise orchestration capabilities, aimed at helping enterprises modernize their operations across hybrid IT environments [1] Group 1 - The acquisition is positioned to enhance operational modernization for enterprises, indicating a focus on improving efficiency and integration within hybrid IT systems [1] - The collaboration leverages specialized knowledge in SAP, suggesting a strong emphasis on enterprise resource planning and management solutions [1] - The move reflects a broader trend in the industry towards integrating advanced technologies to streamline business processes and adapt to evolving IT landscapes [1]

Group 1 - The macroeconomic environment has softened over the past year, but the company's performance has remained strong relative to the industry [1] - Geopolitical tensions are driving companies to seek productivity improvements, leading to increased interest in transformation projects [2] - AI is identified as a key catalyst for enhancing the benefits of company transformations [2] Group 2 - Customer spending on digitization projects is being influenced by the current macroeconomic conditions [1] - Companies are focusing on how to achieve savings and boost revenue through transformation initiatives [2]

Question-and-Answer SessionSo thank you for joining us. So maybe just to sort of kick off, the macro backdrop has obviously become a bit more sort of softer over the past year. I mean SAP's performance actually has been pretty good relative to that and versus the industry. Obviously, tariffs have come more into the picture. What's sort of the -- when you speak to customers, give us your sense on the spending environment, digitization projects in the context of this macro.Dominik AsamCFO & Member of Executiv ...

SAP (NYSE:SAP) 2025 Conference September 09, 2025 11:50 AM ET Company ParticipantsDominik Asam - CFOConference Call ParticipantsMohammed Moawalla - Equity AnalystMohammed MoawallaGreat. Good morning, everyone. Thank you for joining us. My name is Mohamed Moawalla. I cover the European software, IT services, and payment space here at GS. We are delighted to have SAP join us again at the conference. Representing the company is Dominik Asam, Chief Financial Officer. Dominik, welcome back. I know.Dominik AsamTh ...

Core Insights - SAP SE has launched an expanded cloud strategy focusing on digital sovereignty and AI-driven innovation in Europe, addressing regulatory requirements and data protection needs [1][5][10] - The SAP Sovereign Cloud offers flexible deployment options tailored to customer requirements, enabling organizations to innovate securely while maintaining control over their digital assets [2][4][10] Investment Commitment - SAP is committing €20 billion to enhance Europe's digital resilience through secure and regulation-compliant cloud solutions, particularly for the public sector and regulated industries [5][10] Cloud Infrastructure and Offerings - The SAP Cloud Infrastructure (Europe) operates within EU data centers, ensuring compliance with local regulations, while the SAP Sovereign Cloud On-Site provides infrastructure within customer-selected data centers [3][6] - Delos Cloud is specifically designed for the German public sector, facilitating digital transformation while adhering to national sovereignty requirements [4] Financial Performance - SAP's cloud backlog increased by 22% to €18.1 billion, with cloud revenues rising 24% to €5.13 billion, driven by a 30% increase in Cloud ERP Suite revenues to €4.42 billion [8][10] - The company maintains its 2025 outlook, projecting cloud revenues of €21.6–€21.9 billion, reflecting a growth rate of 26–28% at constant currency [8] Growth Strategy - SAP's growth strategy is built on four pillars: product innovation, go-to-market transformation, simplification, and talent investment, aiming for sustained growth through 2027 [9] - The SAP Business Data Cloud is emerging as a core platform, integrating enterprise data to enhance AI-driven operations [11]

Core Viewpoint - SAP is investing 20 billion euros ($23.3 billion) to expand its sovereign cloud services, reflecting Europe's demand for data localization and compliance with local regulations [1][2]. Company Summary - The investment will enhance SAP's Sovereign Cloud portfolio, providing European customers with a complete technology stack while ensuring sensitive data remains under local control [2]. - SAP's offering includes an Infrastructure-as-a-Service (IaaS) platform built on open-source technologies, hosted entirely within EU-based data centers [4]. - SAP has introduced a Germany-specific cloud, Delos Cloud, designed to comply with German regulations [4]. Industry Summary - The concept of sovereign cloud is gaining traction as European regulators enforce stricter data privacy and security laws, such as GDPR and the EU AI Act [3]. - Other cloud providers are also responding to this trend; AWS announced a new sovereign cloud for Europe, while Microsoft and Google Cloud have introduced similar offerings to ensure data remains within Europe and complies with local laws [5][6].

Core Insights - SAP SE has announced a new approach to digital sovereignty and AI innovation, expanding its SAP Sovereign Cloud portfolio to provide European customers with a comprehensive technology stack [1][2] - The initiative aims to reinforce digital sovereignty as a key element of Europe's technological resilience and strategic autonomy, ensuring compliance with local regulations while enabling innovation [1][4] Group 1: SAP Sovereign Cloud Offerings - The expanded SAP Sovereign Cloud provides customers with new deployment models that cater to specific regulatory and operational needs, allowing for secure innovation [3][5] - SAP's long-term investment of over €20 billion reflects its commitment to supporting Europe's digital autonomy through secure and compliant cloud solutions [4] - The offering allows organizations to run their SAP Business Suite in sovereign environments while benefiting from continuous innovation cycles, including SAP Business Technology Platform and embedded SAP Business AI capabilities [5][6] Group 2: Compliance and Security - SAP Sovereign Cloud ensures full-stack sovereignty across data, operational, technical, and legal dimensions, empowering customers to maintain control and meet regulatory requirements [6] - The solutions are designed to be compliant with European data protection regulations, with all data stored within the EU [8] - SAP offers Delos Cloud in Germany, a secure and sovereign cloud tailored for the public sector to meet specific sovereignty requirements [8]

Summary of Key Points from the Conference Call Industry Overview - The analysis focuses on the global equity market, particularly the performance and positioning of long-only funds across various sectors, including Semiconductors, Industrials, and Health Care [1][2][24]. Core Insights - **Equity Flow Trends**: Long-only funds globally purchased $27.2 billion in the Semiconductors sector, driven by positive sentiment towards AI, while they sold $42.3 billion in Industrials and $27.1 billion in Health Care [1]. - **Regional Activity**: Funds bought $21.0 billion in Asia Pacific excluding Japan, while selling $56.5 billion in the US [1]. - **Top Stock Movements**: In the US, NVIDIA saw a significant inflow of $16.9 billion, while Apple experienced an outflow of $11.2 billion. In Emerging Markets, TSMC gained $5.9 billion, and MercadoLibre lost $1.4 billion [2]. Crowded Stocks Analysis - **Crowded Positives**: Stocks with high ownership and positive momentum include Meta, Broadcom, Netflix, Visa, Mastercard, and Wells Fargo [3][4]. - **Crowded Negatives**: Stocks with high ownership but negative momentum include Meituan, LVMH, and Pilbara Minerals [3]. - **Under-owned Negatives**: Stocks like BHP, Targa Resources, and Lockheed Martin are under-owned but have potential upside [4]. Fund Ownership and Active Exposure - **Fund Ownership Metrics**: The report indicates that 73% of relevant funds own Stock B, highlighting the importance of fund ownership in investment decisions [28]. - **Active Exposure Analysis**: The analysis includes over 5,647 active long-only funds managing more than $29 trillion in equities, with a focus on their relative weight against benchmarks [18][19]. Performance Metrics - **Back-tested Performance**: Crowded Positive stocks have outperformed the global combined universe by 4.4% since January 2015, while Under-owned Negatives have consistently underperformed [73]. - **Equity Flow Calculation**: The report emphasizes the importance of equity flow in understanding fund behavior, with cumulative long-only equity flow for China stocks reaching $193.0 billion [27]. Methodology and Limitations - **Methodology**: The analysis combines fund ownership, active exposure, and Triple Momentum to identify investment opportunities and risks [36][63]. - **Limitations**: The report notes that the analysis does not include funds that do not declare holdings regularly or those with less than $500 million in AUM, which may skew results [72]. Conclusion - The report provides a comprehensive overview of fund flows, stock positioning, and performance metrics, highlighting significant trends in the equity market and identifying potential investment opportunities and risks across various sectors and regions.

Core Insights - SAP SE will participate in two upcoming events featuring CFO Dominik Asam, including the Goldman Sachs Communacopia + Technology Conference and the Jefferies Structural Winners Series [1][2] Group 1: Event Participation - SAP executives will hold a Fireside Chat at the Goldman Sachs Communacopia + Technology Conference on September 9, 2025, from 5:50 pm to 6:25 pm CEST [1] - A second Fireside Chat will take place at the Jefferies Structural Winners Series on September 16, 2025, from 5:00 pm to 5:45 pm CEST [2] Group 2: Company Overview - SAP is a global leader in enterprise applications and business AI, with over 50 years of experience in uniting business-critical operations across various functions such as finance, procurement, HR, supply chain, and customer experience [3]