SAP Quarterly Statement Q1 2025

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]