Financial Data and Key Metrics Changes - In Q2, cloud revenue rose by 28%, marking an increase of two percentage points compared to Q1 [7][28] - Total revenue growth accelerated to 12% [8][34] - Current cloud backlog grew by 28% in Q2, reaching €18.1 billion [28][34] - Operating profit surged by 35%, reflecting improvements in the cost base due to the transformation program [9][33] - Non-IFRS operating profit increased to €2.6 billion [34] Business Line Data and Key Metrics Changes - The Cloud ERP suite continued to drive growth, achieving 34% growth in Q2, representing 86% of total cloud revenue [29][34] - Software licenses revenue decreased by 13% in Q2, aligning with the company's strategy to transition to cloud-based models [31][34] Market Data and Key Metrics Changes - Cloud revenue performance was particularly strong in the APJ and EMEA regions, with notable performances in Brazil, Chile, France, India, Italy, South Korea, and Spain [32][34] - The Americas showed solid performance, although specific figures were not disclosed [32] Company Strategy and Development Direction - The company is focusing on product innovation and increasing productivity through business AI [6][25] - SAP aims to strengthen its portfolio with data and AI innovations while maintaining cost discipline [26][35] - The partnership with Alibaba is expected to enhance market potential in China, targeting both existing and new customers [10][61] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing uncertainty in global markets but expressed confidence in the company's pipeline for the second half of the year [6][30] - The company is preparing for less favorable outcomes by focusing on elements within its control to protect its bottom line and free cash flow [31][35] - Management remains optimistic about sustaining momentum and closing the year strongly despite macroeconomic volatility [35] Other Important Information - The company released its first 14 AI agents in the first half of the year, with plans to increase this number to 40 by year-end [19][20] - The non-IFRS cloud gross margin expanded by 1.8 percentage points to 75.2% [33] Q&A Session Summary Question: Insights on operating margin and EBIT growth for the second half - Management highlighted that the strong performance in operating profit was partly due to a €331 million improvement in stock-based compensation, which is expected to have easier comparisons in the first half [42][44] Question: Long-term sustainability of margin improvements - Management expressed confidence in maintaining operating leverage ratios of 80-90% for the coming years, despite some continuous adjustments in workforce [54][56] Question: Details on the Alibaba partnership and its impact - The partnership aims to enhance SAP's presence in China, focusing on both large enterprises and the upper mid-market [61][62] Question: Impact of transformation credits on cash flow - Transformation credits are amortized over the term of the deal, and while they may create initial cash conversion challenges, they are neutral over the life of the transaction [68][70] Question: Demand impact on CCB and cloud revenue - Management noted that while there is a slight deceleration expected, the pipeline coverage remains strong, and customers are responding positively to business cases [80][100]

Financial Data and Key Metrics Changes - In Q2 2025, cloud revenue rose by 28%, an increase of two percentage points compared to Q1 2025 [8][27] - Total revenue growth accelerated to 12%, reaching €9 billion [9][33] - Operating profit surged by 35%, reflecting improvements in the cost base due to transformation programs [9][32] - Current cloud backlog grew by 28% to €18.1 billion [27][33] - Non-IFRS cloud gross margin expanded by 1.8 percentage points to 75.2% [32] Business Line Data and Key Metrics Changes - The Cloud ERP suite continued to drive growth, achieving 34% growth in Q2, representing 86% of total cloud revenue [27][32] - Software licenses revenue decreased by 13% in Q2, aligning with the company's strategy to transition customers to cloud solutions [30] Market Data and Key Metrics Changes - Cloud revenue performance was particularly strong in the APJ and EMEA regions, with notable performances in Brazil, Chile, France, India, Italy, South Korea, and Spain [31] - The US public sector and manufacturing sectors experienced elongated sales cycles due to geopolitical uncertainties [28][30] Company Strategy and Development Direction - The company is focusing on product innovation and increasing productivity through business AI [7][25] - SAP aims to strengthen its portfolio with data and AI innovations while maintaining cost discipline [25][34] - The partnership with Alibaba is expected to enhance market penetration in China, targeting both large enterprises and the upper mid-market [10][60] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing uncertainty in global markets but expressed confidence in the company's pipeline for the second half of the year [7][34] - The company is preparing for potential less favorable outcomes by focusing on elements within its control to protect its bottom line [30] - Management remains optimistic about sustaining momentum and closing the year strongly despite macroeconomic volatility [34] Other Important Information - The company has released over 100 pre-built SAP managed data products, with plans to double that by year-end [21] - The internal adoption of business AI is expected to further enhance productivity and operational efficiency [22][24] Q&A Session Summary Question: Insights on operating margin and EBIT growth for the second half of the year - Management highlighted that the strong performance in the first half was significantly influenced by a €331 million improvement in stock-based compensation, which is expected to normalize in the second half [41][42] Question: Long-term sustainability of margin improvements - Management expressed confidence in maintaining operating leverage ratios between 80% to 90% for the coming years, despite potential fluctuations in expenses [52][53] Question: Details on the Alibaba partnership and its impact - The partnership aims to leverage Alibaba's presence in China to enhance SAP's cloud offerings, targeting both multinational companies and local tech firms [60][63] Question: Impact of macroeconomic factors on demand - Management noted that elongated deal cycles are primarily due to stricter cost controls in certain industries, but emphasized that the pipeline remains strong [97][100] Question: Cash flow and transformation credits - Management explained that transformation credits are amortized over the term of deals and do not significantly impact cash conversion in the long term [66][67]

Financial Performance - Cloud revenue reached €5130 million, a 24% increase, or 28% at constant currency (cc)[6] - Cloud ERP Suite revenue was €4422 million, up 30%, or 34% at constant currency (cc)[6] - Current cloud backlog increased to €18052 million, a 22% increase, or 28% at constant currency (cc)[6] - Total revenue increased by 9% to €9027 million, or 12% at constant currency (cc)[24] - Cloud and software revenue increased by 11% to €7966 million, or 14% at constant currency (cc)[24] - Non-IFRS operating profit increased by 32% to €2568 million, or 35% at constant currency (cc)[24] - IFRS earnings per share increased by 91% to €145, while Non-IFRS earnings per share increased by 37% to €150[29] - Operating cash flow increased by 71% to €2577 million, and free cash flow increased by 83% to €2357 million[29] Regional Performance - APJ cloud revenue increased by 33%, or 37% at constant currency (cc)[26] - Americas cloud revenue increased by 16%, or 22% at constant currency (cc)[26] - EMEA cloud revenue increased by 29%, or 30% at constant currency (cc)[26] Outlook - The company expects cloud revenue of €216 - €219 billion at constant currency (cc), a 26%-28% increase[31] - The company expects cloud and software revenue of €331 - €336 billion at constant currency (cc), an 11%-13% increase[31] - The company expects Non-IFRS operating profit of €103 - €106 billion at constant currency (cc), a 26%-30% increase[31]

SAP reported quarterly cloud and software sales that fell just short of estimates as tariff insecurities weighed on Europe’s most valuable company https://t.co/3O0fjlm00u ...

Core Insights - SAP reported strong second-quarter results with adjusted earnings of $1.70, surpassing the consensus estimate of $1.47 [1] - Quarterly revenue reached $10.23 billion, exceeding the Street estimate of $9.11 billion [1] Financial Performance - Current cloud backlog stands at $21.26 billion, reflecting a 22% increase, and a 28% increase at constant currencies [4] - Cloud revenue grew by 24%, with a 28% increase at constant currencies [4] - Revenue from the Cloud ERP Suite increased by 30%, and by 34% at constant currencies [4] - Total revenue rose by 9%, with a 12% increase at constant currencies [4] - IFRS operating profit was reported at $2.93 billion, while non-IFRS operating profit was $3.05 billion, marking a 32% increase and a 35% increase at constant currencies [4] Strategic Initiatives - CEO Christian Klein highlighted the impact of AI innovations, such as Joule and SAP Business Data Cloud, in strengthening the company's portfolio [3]

二季度非IFRS云/软件营收79.7亿欧元，分析师预期79.9亿欧元。 预计全年非IFRS云营收216亿-219亿欧元，非IFRS运营利润103亿-106亿欧元。 二季度非IFRS云营收51.3亿欧元，分析师预期51.7亿欧元。 德国思爱普Sap二季度非IFRS营收90.3亿欧元，分析师预期90.7亿欧元。 ...

Core Insights - SAP SE reported strong financial results for Q2 2025, highlighting significant growth in cloud revenue and profitability driven by customer demand and AI innovations [2][3][4] Financial Performance - Total revenue for Q2 2025 reached €9.03 billion, an increase of 9% year-over-year, with a 12% increase at constant currencies [5][12] - Cloud revenue grew by 24% to €5.13 billion, with a 28% increase at constant currencies [8][11] - SaaS/PaaS revenue increased by 26% to €5.05 billion, with a 30% increase in Cloud ERP Suite revenue to €4.42 billion [5][11] - IFRS operating profit rose to €2.46 billion, reflecting a growth of over 100% compared to the previous year [14] - Earnings per share (basic) increased by 91% to €1.45 [15] Operational Highlights - The current cloud backlog grew by 22% to €18.1 billion, with a 28% increase at constant currencies [8][11] - Operating cash flow for Q2 was up 71% to €2.58 billion, while free cash flow increased by 83% to €2.36 billion [16] - The share of more predictable revenue increased to 86%, up 2 percentage points from the previous year [12] Strategic Developments - SAP's "RISE with SAP" initiative continues to attract global customers, indicating strong demand for business transformation solutions [19][20] - Partnerships with Accenture and Alibaba Group were announced to enhance cloud transformation efforts [24][25] Outlook - SAP maintains its financial outlook for 2025, expecting cloud revenue to reach €21.6 – 21.9 billion, representing a growth of 26% to 28% at constant currencies [26][27] - The company anticipates a slight deceleration in current cloud backlog growth for 2025 [27]

Core Insights - The global Supply Chain Management (SCM) Market is projected to grow from USD 38.51 billion in 2025 to USD 58.42 billion by 2030, reflecting a Compound Annual Growth Rate (CAGR) of 8.7% during the forecast period [1] Market Dynamics - Rising automation in production and distribution is driving demand for SCM solutions that align planning with real-time execution, enhancing efficiency and reducing errors [3] - The need for actionable insights from operational data is pushing companies towards intelligent SCM platforms that improve forecasting and streamline costs [3] - Mobile-first SCM tools are optimizing business performance by providing real-time access to information and enhancing agility in supply chain execution [4][5] Regional Insights - The US is the largest market for supply chain management, driven by operational resilience, digital transformation, and end-to-end visibility [6] - High demand from sectors such as manufacturing, retail, healthcare, and e-commerce is fueling investments in logistics optimization and warehouse automation [6] Deployment Trends - Cloud-based deployments in SCM are expected to witness the highest growth rate, offering scalable and remotely accessible platforms that enhance agility and reduce IT maintenance [7] - These cloud solutions support core modules such as planning, sourcing, production, logistics, and fulfillment, making them the preferred model across industries [7] Technological Opportunities - Digital twins and scenario simulation are transforming supply chain planning by allowing organizations to model and trial the effects of different decisions in real-time [8] - These technologies help businesses anticipate responses to disruptions and streamline resource deployment, enhancing strategic planning [8]

不过，二季度渠道商调查结果带来了更多信心，数据表明渠道商业务相较第一季度有所改善。2025年第 二季度，受访渠道商的整体SAP业务增长为1.1%，高于第一季度的0.7%。其中欧洲渠道商的表现更为强 劲，2025年第二季度整体增长为2.0%(第一季度为1.1%)，而美国渠道商为0.3%(与第一季度一致)。 云订阅和许可业务均加速增长。渠道商云订阅业务增速在第二季度季度反弹至2.6%，高于第一季度调 查的0.7%，美欧渠道商均表现强劲。许可业务增速也从第一季度的-1.0%反弹至1.4%。 展望2025年第三季度，渠道商预计其整体SAP业务增长将进一步加速至1.6%。其中，美国渠道商预计增 长将反弹至1.8%，欧洲渠道商则预计略微放缓至1.5%。 然而，尽管调查显示2025年第二季度的增长依然稳健，但渠道商对全年增长的预期在第二季度有所下 调。相比第一季度调查时预期的5.4%增长率，目前渠道商预计2025年SAP整体业务年增长为3.2%。按业 务划分，许可业务增长预期从3.7%下调至1.1%，云订阅业务增长预期从8.2%下调至3.6%。尽管这是一 个小幅负面调整，大摩注意到，2025年全年增长预期依然高于2024年 ...

Group 1 - SAP is the second-largest software company in the world by sales, following Microsoft [1] - The company is not widely recognized by most investors, which is surprising given its size and market position [1] Group 2 - The investment strategy focuses on companies with strong qualitative attributes, purchasing them at attractive prices based on fundamentals, and holding them long-term [2] - The portfolio management approach aims to avoid underperforming stocks while maximizing exposure to high-potential winners [2] - Companies may receive a 'Hold' rating if their growth opportunities do not meet the investor's threshold or if the downside risk is deemed too high [2]