SAP SE (SAP) reported first-quarter 2025 non-IFRS earnings per share (EPS) of €1.44 ($1.51), which increased 79% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $1.39.Driven by momentum in the cloud business, SAP reported total revenues on a non-IFRS basis of €9.01 billion ($9.48 billion), which increased 12.1% year over year (up 11% at constant currency or cc). The Zacks Consensus estimate was pegged at $9.78 billion.Management emphasized that the first quarter marked a strong start t ...

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 ...

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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 ...

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Market Overview - The global Customer Information System (CIS) market is projected to grow at a compound annual growth rate (CAGR) of 12.8%, increasing from approximately USD 1.79 billion in 2025 to USD 3.26 billion by 2030 [1][2] Drivers of Growth - Rising digital transformation initiatives are driving the growth of the CIS market, with utilities and service providers utilizing AI-driven analytics and automation to improve customer engagement and operational efficiency [2][5] - The demand for real-time billing, predictive maintenance, and personalized service delivery is accelerating the adoption of cloud-based CIS solutions [2][10] - Regulatory compliance requirements and the need for robust data security are further propelling investments in advanced CIS platforms [2][5] Technological Advancements - The integration of Artificial Intelligence (AI) and Machine Learning (ML) is reshaping the CIS market by enabling predictive analytics and hyper-personalization [4][10] - Cloud deployment is identified as the fastest-growing mode in the CIS market due to its scalability, cost efficiency, and quick implementation [8][10] Regional Insights - North America holds a dominant position in the CIS market, attributed to its advanced technological infrastructure and strong digital transformation initiatives [6][7] - The presence of major industry players like Oracle, IBM, and SAP in North America contributes to continuous innovation and investment in customer data management solutions [6][7] Market Segmentation - Demand response analytics is the fastest-growing segment within the CIS market, driven by the need for energy efficiency and grid modernization [9][10] - Growth opportunities include AI-driven forecasting, personalized energy management, and IoT-smart grid integration [9][10] Strategic Opportunities - Market players can capitalize on the growing demand for modular, AI-powered solutions, ensuring cybersecurity, and forming cloud partnerships [8][10] - Investing in API-driven integrations with IoT and fintech, along with flexible pricing models, will enhance competitiveness in the CIS market [8][10]

Core Insights - Nagarro has announced the strategic transfer of Notion Edge France, an SAP gold partner, enhancing its Customer Experience (CX) offerings in key sectors such as retail, CPG, and manufacturing in France [1][2] - The acquisition allows Nagarro to expand its market presence in Africa while reinforcing its position in Europe [1][2] Company Overview - Notion Edge France specializes in delivering end-to-end SAP-enabled solutions for digital transformation, with successful projects across Europe, the USA, and Africa [2][4] - Founded in 2017 by SAP alumni, Notion Edge focuses on SAP CX, FSM, and BTP implementation, providing integrated digital transformation services [4] Strategic Benefits - The collaboration between Nagarro and Notion Edge is expected to create synergies, combining Notion Edge's expertise in SAP CX with Nagarro's capabilities in SAP S/4HANA ERP [3] - This partnership aims to enhance the delivery of intelligent customer experiences across various sectors, including digital commerce and customer service [3][5] Market Positioning - The integration of Notion Edge's services will allow Nagarro to address a broader range of customer needs and strengthen its global market position [3] - Nagarro employs nearly 18,000 people across 39 countries, emphasizing its global reach and entrepreneurial approach [5]