SAP SE

SAP

Equity

ISIN DE0007164600 / Valor 345952

Xetra (2024-09-16)

EUR 200.15-0.25%

SAP SE
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About company

SAP SE is a global leader in enterprise application software, providing a comprehensive suite of applications and services to businesses of all sizes across various industries. The company specializes in ERP (Enterprise Resource Planning) solutions, aiming to create networks of intelligent enterprises that enhance transparency, resiliency, and sustainability within supply chains. With its headquarters in Walldorf, Germany, SAP operates worldwide, boasting over 105,000 employees from more than 157 countries and a network of over 24,000 partner companies. In the fiscal year 2022, SAP reported total revenue of €29.52 billion and has a cloud user base exceeding 280 million subscribers. The company's offerings enable customers to run their operations profitably, adapt to market changes continuously, and make a significant impact globally. SAP's commitment to innovation is evident in its development of cutting-edge technologies, including the SAP HANA in-memory computing platform, which aims to redefine IT and business practices.

Summarized from source with an LLMView SourceSector: Technology

Cloud Revenue Growth

In the second quarter of 2024, SAP SE reported a significant increase in cloud revenue, which rose by 25% to €4.15 billion. This growth was primarily driven by the Cloud ERP Suite, which saw a 33% increase in revenue, reaching €3.41 billion. The strong performance in cloud services underscores SAP SE's successful transition towards cloud-based solutions.

Total Revenue Increase

SAP SE's total revenue for Q2 2024 increased by 10%, reaching €8.29 billion. This growth was consistent across both nominal and constant currencies. The increase in total revenue was supported by a 10% rise in cloud and software revenue, which amounted to €7.17 billion for the quarter.

Operating Profit Dynamics

For the second quarter of 2024, SAP SE's IFRS operating profit decreased by 11% to €1.22 billion, primarily due to restructuring expenses amounting to €0.6 billion. However, the non-IFRS operating profit saw a substantial increase of 33%, reaching €1.94 billion, and was up 35% at constant currencies. This growth was driven by strong revenue performance and disciplined execution of the company's transformation program.

Earnings Per Share

SAP SE reported an increase in IFRS earnings per share (basic) by 22% to €0.76 for Q2 2024. Non-IFRS earnings per share (basic) saw an even more significant rise of 59%, reaching €1.10. The effective tax rate for the quarter remained stable at 33.8% for IFRS and slightly increased to 33.6% for non-IFRS, mainly due to temporary tax effects related to restructuring.

Free Cash Flow

In the second quarter of 2024, SAP SE's free cash flow increased by 114% to €1.3 billion. This positive development was primarily attributed to increased profitability and improved working capital management, despite €0.5 billion being paid out for restructuring. For the first half of the year, free cash flow was up 48%, totaling €3.8 billion.

Summarized from source with an LLMView Source

Key figures

57.3%1Y

63.4%3Y

88.0%5Y

Performance

22.8%1Y

23.8%3Y

27.8%5Y

Volatility