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 Data and Key Metrics Changes - Total revenue for Q2 was $272 million, up 3% year-over-year [27] - Cloud revenue increased 22% to $100 million, while services revenue declined 6% to $129 million [28] - Adjusted operating profit was $101 million with an adjusted operating margin of 37.1%, up 210 basis points year-over-year [30] - Adjusted earnings per share (EPS) for Q2 was $1.31, up 11%, and GAAP EPS was $0.93, up 9% [30] - Free cash flow margin was 26% with a 38% adjusted EBITDA margin [30] Business Line Data and Key Metrics Changes - RPO (Remaining Performance Obligations) increased 26% year-over-year to $2.01 billion [28] - More than 70% of new cloud bookings were generated from net new logos, with new logos representing approximately 35% of the current pipeline [12] - The average contract duration remains at 5.5 to 6 years, with 38% of RPO expected to be recognized as revenue over the next 24 months [29] Market Data and Key Metrics Changes - The company experienced strength from new customers across diverse end markets, including retail, grocery, life sciences, and technology [12] - Win rates against top five competitors remained consistent at over 70% [12] Company Strategy and Development Direction - The company is strategically increasing investment in sales and marketing to accelerate sales velocity and drive market share gains [13] - New partnerships with Google and Shopify are expected to enhance product accessibility and customer acquisition [15][16] - The company is focused on unifying its product portfolio to drive cross-selling opportunities, with 80% of customers purchasing multiple products [24] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term opportunities despite a volatile global macro environment [11] - The company is raising its full-year total revenue, operating margin, and EPS outlook based on strong first-half performance [33] - Management expressed confidence in sustaining 20% growth in cloud subscription revenue, supported by a large booked business in RPO [46] Other Important Information - The company has zero debt and ended the quarter with $231 million in cash [31] - A share repurchase program of $150 million has been executed year-to-date, with an additional $100 million approved by the Board [31] Q&A Session Summary Question: On supply chain unification and potential enhancements - Management is doubling down on investment in unification through dedicated engineering teams and customer engagement initiatives [41][44] Question: Confidence in sustaining cloud subscription revenue growth - Management remains confident in sustaining 20% growth due to a solid booked business and expanding total addressable market (TAM) [46][49] Question: Go-to-market investment areas and their potential impact - New hires and partnerships are expected to enhance market awareness and drive revenue growth, particularly in POS and TMS markets [56] Question: Status of on-premise to cloud migration - Approximately 20% of on-premise customers have started the conversion to cloud, with ongoing efforts to accelerate this process [65] Question: Impact of ERP migrations on new customer acquisition - ERP migrations are creating opportunities for new customer acquisitions as companies reassess their supply chain needs [67] Question: Trends in the macro environment and customer investment behavior - CIOs are increasingly recognizing the importance of investing in supply chain solutions despite macro uncertainties [85] Question: Updates on marketing initiatives and awareness - The company is actively searching for a Chief Marketing Officer to enhance market presence and awareness [88]

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]

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]

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 - Appian has appointed David Crozier as Chief Marketing Officer, effective July 21, 2025, reporting to CEO Matt Calkins [1] - Crozier has over 20 years of marketing experience, previously serving as Vice President of Marketing at Hewlett Packard Enterprise (HPE) [2] - His experience includes leading global marketing for HPE Services and HPE GreenLake, focusing on cloud and AI solutions [2] - Crozier has held various marketing leadership roles at IBM, covering enterprise software and financial services [3] - He holds a B.A. in Marketing from the University of Stirling and an MBA from Henley Business School [3] Company Overview - Appian is known as The Process Company, providing a software platform that enhances organizational processes, reduces costs, and improves customer experiences [4] - The company serves many of the world's largest companies across various industries, emphasizing client success [4]

Core Insights - UiPath (PATH) is trading at a forward 12-month price-to-sales (P/S) ratio of 4.12X, which is below the industry average of 5.75X, indicating a potential investment opportunity for those interested in enterprise automation [1][8] - The company has shown consistent revenue growth driven by strong demand in sectors such as finance, healthcare, and logistics, supported by its enterprise-first approach and recurring revenue model [2][8] - UiPath's lower P/S ratio may reflect market caution regarding its path to profitability, but it may also underappreciate the company's strategic positioning and innovation potential for long-term investors [3] Valuation and Competitive Position - UiPath stands out in valuation compared to peers like ServiceNow (NOW), which trades at a forward P/S of 13.85X, and Pegasystems (PEGA), which trades at 4.93X, highlighting UiPath's relative affordability [5][6] - The company's focus on automation-first solutions differentiates it from broader enterprise platforms like ServiceNow and Pegasystems, which incorporate automation as part of a wider offering [6] Growth Momentum - UiPath's shares have increased by 19% over the past three months, although this is below the broader industry's growth of 35% [9] - The Zacks Consensus Estimate for UiPath's earnings has been trending higher over the past 60 days, indicating potential strength ahead [11] - UiPath currently holds a Zacks Rank 1 (Strong Buy), reflecting its strong earnings estimate revisions and valuation [14] Conclusion - UiPath presents a compelling case for investment due to its discounted valuation, robust product offerings, expanding international presence, and strong positioning in the automation market [15][16]

Core Viewpoint - Salesforce is strategically positioning itself at the forefront of the AI shift in the tech industry with its AI-powered Service Cloud, which is reshaping investor perceptions of its long-term potential [1]. Group 1: Financial Projections - Analysts expect Salesforce's Service Cloud to generate $9.7 billion in revenue for fiscal 2026, accounting for 25% of total subscription revenue [2]. - Projected fiscal 2026 sales for Salesforce are $41.2 billion, with an EPS of $11.28 [10]. Group 2: Growth Trends - Growth for Service Cloud slowed slightly to 7% in the first quarter of fiscal 2026, but after adjustments, the normalized rate is closer to 8.5%, indicating only a modest deceleration [2][3]. - The analyst projects growth acceleration to 9% in the coming quarters, trending toward 12% in the long run [3]. Group 3: Competitive Advantage - Service Cloud's growth potential is projected at 21%, significantly ahead of the next closest competitor at 7%, attributed to its user-friendly interface and deep customization [4]. - The Agentforce AI suite is becoming a central growth lever, with over 8,000 customers signed up, and more than half converting to paying accounts [6]. Group 4: Product Offerings and Strategy - Add-ons like Service Cloud Voice and Digital Engagement represent durable upsell opportunities that support a bullish outlook [5]. - Salesforce's pricing tiers range from $25/month to $550/month, facilitating broad adoption across various business sizes [8]. - The go-to-market strategy integrates Agentforce into the existing customer base, allowing for easy cross-sell and bundled offerings [9].

Group 1: Eledon Pharmaceuticals, Inc. (ELDN) - Eledon Pharmaceuticals is a clinical stage biotechnology company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings increased by 23.8% over the last 60 days [1] - Eledon's shares gained 22.2% over the past month, outperforming the S&P 500's advance of 3.8% [1] - The company has a Momentum Score of A [1] Group 2: KDDI Corporation (KDDIY) - KDDI Corporation is a Japanese telecommunications services company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings increased by 39.7% over the last 60 days [2] - KDDI's shares gained 5.9% over the last six months, slightly outperforming the S&P 500's advance of 5.2% [2] - The company has a Momentum Score of B [2] Group 3: Penguin Solutions, Inc. (PENG) - Penguin Solutions is a designer and developer of enterprise solutions with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings increased by 14.2% over the last 60 days [3] - Penguin's shares gained 41.2% over the last three months, significantly outperforming the S&P 500's advance of 16% [3] - The company has a Momentum Score of A [3]

Core Insights - The success of AI strategies heavily relies on reliable data, with 94% of technology leaders focusing more on data due to the ongoing AI trend [2] - Companies face challenges in selecting the right partners to unlock data value and drive AI projects amid rapid market changes [2] Group 1: Data Transformation Strategies - Companies can follow three actionable paths for successful data transformation: empowering critical business applications, transitioning from transactional to intelligent applications, and leveraging open ecosystems [3][5][7] - Only 34% of business leaders express high trust in their data, indicating a significant challenge in data integration and management [3] - Business data fabric can simplify data management by providing an integrated, semantically rich data layer, enabling easier access to trustworthy data [3] Group 2: SAP Business Data Cloud - SAP Business Data Cloud offers a fully managed SaaS solution that unifies and governs both SAP and third-party data, facilitating strategic data projects [4] - The "zero copy share" method of SAP Business Data Cloud reduces complexities in data environments, allowing companies to focus on transformative data initiatives [4] - SAP's intelligent applications, built on its extensive business process experience, are designed to embed smart capabilities directly into core business processes [5][6] Group 3: Importance of Open Ecosystems - Companies should choose vendors with an open ecosystem strategy to access diverse industry expertise and extend solutions across multiple cloud platforms [7] - SAP's partnership strategy exemplifies this approach, as seen in collaborations with Adobe and Moody's to enhance data insights and application capabilities [7] - The integration of data and AI is crucial for future business success, with companies viewing data as a strategic asset leading to a 28% higher AI adoption rate [8]