SAP SE

SAP

Equity

ISIN US8030542042 / Valor 42290

CTA NASDAQ OMX Stock Exchange (2024-09-12)

USD 221.05+1.64%

SAP SE
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About company

SAP SE is a leading global provider of enterprise application software, headquartered in Walldorf, Germany. The company specializes in ERP (Enterprise Resource Planning) solutions, aiming to facilitate the creation of intelligent enterprises that enhance transparency, resilience, and sustainability across various supply chains. SAP's comprehensive suite of applications and services is designed to help businesses of all sizes and from all industries to operate more efficiently, adapt to changes seamlessly, and achieve a positive impact worldwide. With over 105,000 employees across more than 157 countries, SAP supports a wide network of customers and partners, generating a total revenue of €29.52 billion in the fiscal year 2022. The company also boasts a cloud user base of over 280 million subscribers and maintains a significant global presence with more than 24,000 partner companies and over 100 development locations worldwide.

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

Despite the overall revenue growth, SAP SE's IFRS operating profit for Q2 2024 decreased by 11% to €1.22 billion. This decline was attributed to restructuring expenses amounting to €0.6 billion. However, on a non-IFRS basis, operating profit increased by 33% to €1.94 billion, reflecting strong revenue growth and disciplined execution of the company's transformation program.

Earnings Per Share

SAP SE reported an increase in earnings per share (EPS) for Q2 2024. The IFRS EPS (basic) rose by 22% to €0.76, while the non-IFRS EPS (basic) saw a substantial increase of 59%, reaching €1.10. The improvement in EPS was driven by higher profitability and effective tax management.

Free Cash Flow Surge

Free cash flow for SAP SE in the second quarter of 2024 surged by 114% to €1.3 billion. This significant increase was primarily due to enhanced profitability and improved working capital management. For the first half of 2024, free cash flow was up by 48%, totaling €3.8 billion, despite restructuring payouts of around €0.5 billion.

Summarized from source with an LLMView Source

Key figures

63.5%1Y

52.5%3Y

82.9%5Y

Performance

24.4%1Y

27.1%3Y

31.3%5Y

Volatility