The large-cap tech sector is showing signs of strain, especially after China’s DeepSeek AI models look to be competitive with U.S. versions. Amid the start to the fourth quarter earnings season, SAP (NYSE: SAP ), theWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alp ...

Cloud Performance - SAP's current cloud backlog reached €18.1 billion, up 32% year-over-year, and 29% at constant currencies[2] - Total cloud backlog increased to €63.3 billion, reflecting a 43% growth and 40% at constant currencies[2] - Cloud revenue for FY 2024 rose by 25% to €17.14 billion, with a 26% increase at constant currencies[20] - Cloud ERP Suite revenue surged by 33% to €14.17 billion, up 34% at constant currencies[9] - Cloud revenue for Q4 2024 was €4,708 million, with a year-over-year growth of 27%[49] - Cloud revenue for the full year 2024 was €17,141 million, representing a 25% increase from €13,664 million in 2023[54] - The Americas region contributed €7,872 million in cloud revenue for Q1–Q4 2024, a 19% increase from €6,642 million in Q1–Q4 2023[71] Financial Highlights - Total revenue for FY 2024 was €34.18 billion, marking a 10% increase year-over-year[20] - Total revenue for Q4 2024 reached €9,377 million, representing an 11% year-over-year increase[49] - Total revenue for Q1–Q4 2024 was €34,176 million, a 10% increase compared to €31,207 million in Q1–Q4 2023[71] - Free cash flow for the full year was down 19% to €4.11 billion, impacted by restructuring payouts of €2.5 billion and share-based compensation of €1.3 billion[24] - Free cash flow for Q4 2024 was reported at –€0.92 billion, down from €1.67 billion in Q4 2023[18] - Cash and cash equivalents at the end of Q4 2024 were €9,609 million, up from €8,124 million at the end of Q4 2023[55] Profitability Metrics - Non-IFRS operating profit increased by 25% to €8.15 billion, with a 26% rise at constant currencies[22] - IFRS operating profit decreased by 20% to €4.66 billion, primarily due to restructuring expenses of approximately €3.1 billion[22] - Operating profit (non-IFRS) for Q4 2024 was €2,436 million, showing a 24% increase compared to the previous year[49] - Profit after tax from continuing operations increased by 35% to €1,616 million, compared to €1,201 million in Q4 2023[52] - The company reported a total operating profit of €8,153 million for the year, a 26% increase from €6,514 million in 2023[63] Shareholder Returns - SAP's share repurchase program had an aggregate volume of up to €5 billion, with approximately €3.0 billion repurchased by December 31, 2024[27] - Earnings per share (basic, non-IFRS) for Q4 2024 was €1.40, up from €1.12 in Q4 2023[50] - Earnings per share (basic) from continuing operations rose by 31% to €1.37 in Q4 2024, up from €1.05 in Q4 2023[52] Employee Metrics - The number of employees at the end of Q4 2024 was 109,121, an increase from 107,602 in Q4 2023[50] - Customer Net Promoter Score (NPS) increased 3 points year over year to 12 in 2024, while employee engagement index decreased 6 percentage points to 74%[25] Future Outlook - SAP anticipates accelerating cloud revenue growth in 2025, supported by a strong position in data and Business AI[4] - For 2025, SAP expects cloud revenue to be between €21.6 billion and €21.9 billion, representing a growth of 26% to 28% at constant currencies[38] - SAP anticipates non-IFRS operating profit for 2025 to be between €10.3 billion and €10.6 billion, up 26% to 30% at constant currencies[38] - The effective tax rate (non-IFRS) is expected to be approximately 32% for 2025, consistent with 2024[38] Restructuring and Transformation - The 2024 Transformation Program is estimated to incur expenses of approximately €3.2 billion, with restructuring payouts of €2.5 billion for the full year[28] - Restructuring expenses in 2024 primarily related to a company-wide transformation program, with additions to the restructuring provision totaling €3,144 million[75] - The restructuring provision at the end of 2024 was €681 million, after utilizations of €1,061 million and transfers totaling €1,433 million[76] Acquisitions - SAP announced the acquisition of WalkMe Ltd. for approximately €1.3 billion, which closed on September 12, 2024[78] - WalkMe contributed approximately €61 million to revenue and approximately €-54 million to operating profit (IFRS) for the full year 2024[79] Changes in Reporting - SAP will change its cash flow statement presentation starting in 2025, moving interest paid and received to financing and investing activities, respectively[81] - The new definition of free cash flow (FCF) will include proceeds from sales of intangible assets and property, plant, and equipment, reflecting a more comprehensive cash flow evaluation[84] - Under the new FCF definition, the estimated impact for 2025 is approximately €0.2 billion positive effect[86]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

German tech giant SAP on Tuesday upgraded its financial outlook for the full year as artificial cloud computing and artificial intelligence operations fueled growth.Europe's largest software maker now expects operating profit on a constant currency basis in 2025 to be between 10.3 billion euros ($10.7 billion) to 10.6 billion euros, up from a previous target of 10.2 billion euros. The firm also expects an acceleration in cloud revenue growth.Adjusted operating profit rose 25% to 8.15 billion euros in 2024, ...

SAP SE (SAP) reported fourth-quarter 2024 non-IFRS earnings per share (EPS) of €1.40, which increased 24% from the year-ago quarter. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.SAP achieved significant strides in cloud adoption, with half of the fourth-quarter cloud order entries incorporating artificial intelligence (AI) capabilities. This highlights SAP's growing focus on Business AI, which is poised to play a pivotal role in driving revenue growth through 2027. The company ex ...

January 28, 2025 Christian Klein, CEO Dominik Asam, CFO Public Fourth Quarter and Full-Year 2024 Results Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 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 t ...

New Extended Board, including Chief Technology Officer (CTO) and Chief Revenue Officers (CROs), will further enhance efficiency and accelerate transformation.  WALLDORF, Germany, Jan. 28, 2025 /PRNewswire/ -- SAP SE (NYSE: SAP) today announced that Sebastian Steinhaeuser (39) has been appointed to join the SAP Executive Board. He will lead a newly formed board area called Strategy & Operations, continuing to support the execution of SAP's strategy and driving simplification in operations. The SAP Supervisor ...

Financial Performance - Q4 2024 cloud revenue grew 27% to €4.71 billion, driven by a 35% increase in Cloud ERP Suite revenue to €3.95 billion [10] - Full-year 2024 cloud revenue increased 25% to €17.14 billion, with Cloud ERP Suite revenue up 33% to €14.17 billion [6][17] - Total cloud backlog reached €63.29 billion, up 43% year-over-year [6][16] - Non-IFRS operating profit for 2024 increased 25% to €8.15 billion, with a margin of 23.9% [19] - Free cash flow for 2024 was €4.11 billion, down 19% due to restructuring payouts of €2.5 billion [21] Cloud and AI Strategy - Half of Q4 cloud order entry included AI, reflecting the company's strong position in Business AI [2] - Cloud ERP Suite, including SAP S/4HANA Cloud and SAP Business Technology Platform, contributed €14.17 billion in revenue, up 33% [6][17] - The company launched collaborative AI agents and SAP Green Ledger, a comprehensive carbon accounting system [31][32] - "RISE with SAP" and "GROW with SAP" offerings drove significant customer adoption, including BASF, BP, and Ford Motor Company [27][28] Regional and Customer Performance - Q4 cloud revenue growth was strong in APJ and EMEA, with outstanding performances in China, France, and India [30] - Full-year cloud revenue growth was led by China, Germany, and India, with Brazil and Saudi Arabia also showing strong results [30] - Key customer wins included ABB, Bayer, and PwC Germany, with notable go-lives for SAP S/4HANA Cloud by Coles Group and General Motors [29][28] 2025 Outlook - Cloud revenue is expected to grow 26%-28% to €21.6-21.9 billion at constant currencies [37] - Non-IFRS operating profit is projected to increase 26%-30% to €10.3-10.6 billion [37] - Free cash flow is anticipated to nearly double to approximately €8.0 billion, based on updated definitions [37] - Current cloud backlog growth is expected to slightly decelerate in 2025 [34] Transformation and Restructuring - The 2024 transformation program incurred €3.2 billion in expenses, with €2.5 billion paid out in 2024 and €0.7 billion expected in 2025 [25] - Restructuring expenses impacted IFRS operating profit, which declined 20% to €4.66 billion [19] - The program focused on scalability and strategic growth areas, with payouts affecting free cash flow [25][21] Non-Financial Metrics - Customer Net Promoter Score (NPS) increased to 12, at the upper end of the outlook range [22] - Employee engagement index recovered to 76% in H2 2024, ending the year at 74% [22] - The proportion of women in executive roles increased to 22.5%, in line with targets [23] - Carbon emissions remained flat at 6.9 Mt, missing the initial guidance for a decrease [23]

SAP SE (SAP) is scheduled to report results for the fourth quarter of 2024 on Jan. 28.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for fourth-quarter 2024 earnings has been revised 2.9% downward in the past 60 days and is pegged at $1.33 per share. Additionally, the consensus mark implies a 12.5% decline from the year-ago reported actuals. The Zacks Consensus Estimate for fourth-quarter 2024 revenues is currently pegged at $9.66 billion, indicating a ...

SAP SE (SAP) and Qualtrics, a leader in experience management (XM), have announced a new partnership to enhance employee experiences. Integration of SAP SuccessFactors with Qualtrics XM for Employee Experience is expected to reduce employee attrition, retain and develop top talent, boost engagement and drive productivity.With a new SAP Endorsed Apps agreement, organizations using SAP SuccessFactors can now integrate Qualtrics XM for Employee Experience, unlocking advanced tools like People Engage, People Li ...