Powered by resilient performance in the cloud business, SAP reported total revenues on a non-IFRS basis of €8.288 billion ($8,921.3 million), which rose 10% year over year both at nominal and constant currencies (cc) basis. The Zacks Consensus Estimate was pegged at $8,864.7 million. Additionally, it plans to invest substantially in Business AI capabilities, leveraging AI-driven insights to enhance customer value and operational efficiency. Current cloud backlog — a key indicator of go-to-market success in ...

Financial Data and Key Metrics Changes - Free cash flow in Q2 increased by 114% to EUR1.3 billion, primarily due to increased non-IFRS profitability and enhanced working capital management [14] - Operating profit jumped 35% to EUR1.9 billion year-over-year, with the operating margin improving by 4.4 percentage points [30] - Total revenue was EUR8.3 billion in Q2, up 10% year-over-year, marking the first double-digit growth since Q1 2019 [45] - Non-IFRS operating profit grew by 35% to EUR1.94 billion, supported by strong revenue growth and operational efficiency [79] Business Line Data and Key Metrics Changes - Cloud revenue expanded 25% to EUR4.2 billion, driven by a 33% increase in cloud ERP suite revenue, reaching EUR3.4 billion [40][77] - Software licenses revenue decreased by 27% compared to the same period last year, reflecting the ongoing shift towards cloud solutions [45] - Cloud gross profit grew by 29%, resulting in a cloud gross margin improvement of 2 percentage points to 73.3% [46] Market Data and Key Metrics Changes - Current cloud backlog rose 28% to EUR14.8 billion, indicating strong demand for cloud solutions [40][44] - Strong cloud revenue performance was noted particularly in APJ and EMEA regions, with Brazil, Canada, Germany, India, Japan, and South Korea showing outstanding growth [78] Company Strategy and Development Direction - The company is focusing on simplifying its go-to-market strategy to strengthen channel business and promote land-and-expand motions [32] - The transformation program initiated in January is aimed at enhancing operational efficiencies and laying the groundwork for long-term growth [1] - The company is confident in achieving its 2025 ambitions, raising the operating profit target by EUR200 million due to the transformation program [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong pipeline and positive customer feedback, indicating a healthy demand for solutions despite macroeconomic challenges [52][70] - The company is optimistic about the second half of 2024, with Q4 being crucial for cloud revenue growth [47][104] - Management acknowledged the need for caution regarding market dynamics but noted no significant macroeconomic impacts on their performance [133] Other Important Information - The company has published over 60 GenAI use cases and aims to deliver more than 100 scenarios by the end of the year [28] - The restructuring program is expected to affect between 9,000 and 10,000 positions, with an overall cash out of approximately EUR3 billion [79][80] Q&A Session Summary Question: Concerns about macro impact on performance - Management noted a strong performance in the first half of the year and a healthy pipeline, indicating no significant macroeconomic impacts [52][133] Question: Details on enterprise architects allocation - Management confirmed the need for reskilling existing architects and hiring new ones to meet customer demands [7][128] Question: Clarification on Q4 being decisive for cloud revenue growth - Management acknowledged the tougher comparisons in Q4 but maintained a bullish outlook based on current performance and pipeline [8][104] Question: Insights on clients' decision-making process regarding GenAI - Management indicated that while some peers have seen delays, they are experiencing acceleration due to embedding GenAI in their offerings [10][109] Question: Updates on restructuring and its impact on financial performance - Management confirmed that the bulk of restructuring expenses will occur in 2024, with significant run-rate savings expected in 2025 [80][138]

Core Insights - HERE Technologies announced the integration of HERE Matrix Routing with SAP's AI-enabled Field Service Management solution, enhancing operational efficiency, reducing costs, promoting sustainability, and improving customer experience in service management [5][9][11] Group 1: Efficiency and Cost Savings - The integration optimizes job assignments by minimizing travel and idle time, leveraging historical and real-time traffic data, which maximizes overall operational efficiency [2][10] - Significant reductions in operational costs are achieved through minimized travel time, fuel consumption, and overtime expenses [2][9] - The advanced routing capabilities allow for quick calculation of multiple routes and accurate estimated times of arrival (ETAs), streamlining field service operations [10][11] Group 2: Sustainability - Field service operations become more sustainable due to reduced travel time and energy consumption, contributing to environmentally friendly practices [2][9] Group 3: Customer Experience - Improved accuracy in appointment windows leads to timely service delivery, resulting in increased customer satisfaction [2][9]

Press release Trifork Group AG Schindellegi, Switzerland – 27 June 2024 Trifork acquires Sapere Group ApS to grow expertise in the SAP Business Technology Platform Trifork A/S ("Trifork") and Sapere Group ApS ("Sapere") today signed an agreement under which Trifork acquires 77.8% of Sapere, a Danish expert in the SAP Business Technology Platform. As partners, Trifork and Sapere will work closely together to help our SAP customers maximize the value of SAP BTP and through innovative solutions increase the ov ...

Choosing the Cloud to Support Future Growth "SAP S/4HANA Cloud Public Edition was the best ERP option to meet our needs because of its standard processes, latest industry best practices and continuously delivered innovation, and I believe that adopting an SaaS solution will help future-proof our technology stack as we continue to grow," Bain & Company Chief Information Officer Ramesh Razdan said. "We've already completed our first year-end close on SAP S/4HANA Cloud Public Edition and are very pleased with ...

SAP SE (SAP) recently announced that it was set to acquire Israel-based WalkMe in an all-cash deal. The executive and supervisory boards of SAP along with the board of directors of WalkMe had approved the transaction for $14 per share (45% premium to WalkMe's closing share price on Jun 4), bringing the total equity value to $1.5 billion. The acquisition subject to customary closing conditions and regulatory clearances is expected to close in the third quarter of 2024. The buyout is unlikely to have any mate ...

"By acquiring WalkMe, we are doubling down on the support we provide our end users, helping them to quickly adopt new solutions and features to get the maximum value out of their IT investments," Christian Klein, CEO and member of the executive board of SAP, said in the release. SAP plans to acquire WalkMe to add that company's digital adoption platforms (DAPs) and expand its own solutions that help customers on their digital transformation journeys. The two companies entered into a definitive agreement for ...

Key Takeaways German business software developer SAP (SAP) agreed to buy digital adoption platform provider WalkMe (WKME) for $1.5 billion in cash, in a deal set to boost SAP's artificial intelligence (AI) offerings. SAP announced Wednesday that the agreement would pay WalkMe investors $14 per share, a 45.2% premium to WalkMe's closing price Tuesday. WalkMe shares skyrocketed in intraday trading Wednesday, almost reaching the offer price level after the announcement. How WalkMe Will Add to SAP Offerings Tel ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Dan Adika, CEO of Israel-based WalkMe, added that the deal would provide the software-as-service company with the resources and customer base necessary to expand its market reach—pointing to "substantial growth opportunities." The board members of German software company SAP stand behind the company logo at its headquarters in Wa ...

WalkMe was valued at less than $880 million at the close of the markets yesterday, and the offer of $14 per share represents a 45% premium. Enterprise software giant SAP is acquiring "digital adoption" platform providerWalkMe in an all-cash transaction worth $1.5 billion. This is a break story, refresh for updates. Founded out of San Francisco in 2011, companies use WalkMe's software to integrate on-screen product walkthroughs into their software, for instance to guide users through new features or to on-bo ...