- SAP meets or exceeds all financial outlook parameters for
FY2024
- Current cloud backlog of €18.1 billion, up 32% and up 29% at
constant currencies
- Total cloud backlog of €63.3 billion, up 43% and up 40% at
constant currencies
- Cloud revenue up 25% and up 26% at constant currencies in
FY2024
- Cloud ERP Suite revenue up 33% and up 34% at constant
currencies in FY2024
- Total revenue up 10% and up 10% at constant currencies in
FY2024
- IFRS operating profit down 20%, non-IFRS operating profit up
25% and up 26% at constant currencies in FY2024
- 2025 outlook anticipates accelerating cloud revenue growth
WALLDORF, Germany, Jan. 28,
2025 /PRNewswire/ -- SAP SE (NYSE: SAP) announced
today its financial results for the fourth quarter and fiscal year
ended December 31, 2024.
Christian Klein, CEO:
Q4 was a strong finish to the year, with half of our cloud order
entry including AI. Looking at the full year, we exceeded our cloud
goals, accelerating cloud revenue and current cloud backlog growth
against a much larger base. Total cloud backlog now stands at €63
billion, up 40%. Revenue growth has returned to double-digits.
Looking ahead, our strong position in data and Business AI gives us
additional confidence that we will accelerate revenue growth
through 2027.
Dominik Asam, CFO:
We are pleased with the strong close to 2024, where we exceeded our
cloud and software revenue, non-IFRS operating profit, and free
cash flow outlook. With current cloud backlog growth of 29%, we've
demonstrated the strength of our strategy and our ability to
deliver on our commitments. This progress solidly aligns with the
Ambition 2025 we set four years ago and positions us well for
continued growth this year and beyond.
Financial Performance
Group results at a glance – Fourth quarter 2024
|
IFRS
|
|
Non-IFRS1
|
|
€ million, unless
otherwise stated
|
Q4 2024
|
Q4 2023
|
∆ in %
|
|
Q4 2024
|
Q4 2023
|
∆ in %
|
∆ in %
const. curr.
|
|
SaaS/PaaS
|
4,585
|
3,515
|
30
|
|
4,585
|
3,515
|
30
|
30
|
|
Thereof Cloud ERP
Suite2
|
3,949
|
2,931
|
35
|
|
3,949
|
2,931
|
35
|
35
|
|
Thereof Extension
Suite3
|
636
|
584
|
9
|
|
636
|
584
|
9
|
6
|
|
IaaS4
|
123
|
184
|
–33
|
|
123
|
184
|
–33
|
–33
|
|
Cloud
revenue
|
4,708
|
3,699
|
27
|
|
4,708
|
3,699
|
27
|
27
|
|
Cloud and software
revenue
|
8,267
|
7,382
|
12
|
|
8,267
|
7,382
|
12
|
11
|
|
Total
revenue
|
9,377
|
8,468
|
11
|
|
9,377
|
8,468
|
11
|
10
|
|
Share of more
predictable revenue (in %)
|
81
|
77
|
4pp
|
|
81
|
77
|
4pp
|
|
|
Cloud gross
profit
|
3,429
|
2,658
|
29
|
|
3,458
|
2,669
|
30
|
29
|
|
Gross profit
|
6,943
|
6,204
|
12
|
|
6,972
|
6,216
|
12
|
12
|
|
Operating profit
(loss)
|
2,016
|
1,902
|
6
|
|
2,436
|
1,969
|
24
|
24
|
|
Profit (loss) after tax
from continuing operations
|
1,616
|
1,201
|
35
|
|
1,619
|
1,302
|
24
|
|
|
Profit (loss) after
tax5
|
1,616
|
1,201
|
35
|
|
1,619
|
1,302
|
24
|
|
|
Earnings per share -
Basic (in €) from continuing operations
|
1.37
|
1.05
|
31
|
|
1.40
|
1.12
|
24
|
|
|
Earnings per share -
Basic (in €)5
|
1.37
|
1.05
|
31
|
|
1.40
|
1.12
|
24
|
|
|
Net cash flows from
operating activities from continuing operations
|
–551
|
1,926
|
NA
|
|
|
|
|
|
|
Free cash
flow
|
|
|
|
|
–918
|
1,670
|
NA
|
|
|
|
1 For a
breakdown of the individual adjustments see table "Non-IFRS
Operating Expense Adjustments by Functional Areas" in this
Quarterly Statement.
2 Cloud ERP Suite references the portfolio of
strategic Software-as-a-Service (SaaS) and Platform-as-a-Service
(PaaS) solutions that are tightly integrated with our core ERP
solutions and are included in key commercial packages, such as RISE
with SAP. The following offerings contribute to Cloud ERP Suite
revenue: SAP S/4HANA Cloud, SAP Business Technology Platform, and
core solutions for HR and payroll, spend management, commerce,
customer data solutions, business process transformation, and
working capital management. For additional information and
historical data on Cloud ERP Suite, see SAP's Reporting
Framework.
3 Extension Suite references SAP's remaining SaaS
and PaaS solutions that supplement and extend the functional
coverage of the Cloud ERP Suite.
4 Infrastructure as a service (IaaS): The major
portion of IaaS comes from SAP HANA Enterprise Cloud.
5 From continuing and discontinued
operations.
|
Group results at a glance – Full year 2024
|
IFRS
|
|
Non-IFRS1
|
|
€ million, unless
otherwise stated
|
Q1–Q4
2024
|
Q1–Q4
2023
|
∆ in %
|
|
Q1–Q4
2024
|
Q1–Q4
2023
|
∆ in %
|
∆ in %
const. curr.
|
|
SaaS/PaaS
|
16,601
|
12,916
|
29
|
|
16,601
|
12,916
|
29
|
29
|
|
Thereof Cloud ERP
Suite revenue2
|
14,166
|
10,626
|
33
|
|
14,166
|
10,626
|
33
|
34
|
|
Thereof Extension
Suite revenue3
|
2,435
|
2,290
|
6
|
|
2,435
|
2,290
|
6
|
6
|
|
IaaS4
|
540
|
748
|
–28
|
|
540
|
748
|
–28
|
–27
|
|
Cloud
revenue
|
17,141
|
13,664
|
25
|
|
17,141
|
13,664
|
25
|
26
|
|
Cloud and software
revenue
|
29,830
|
26,924
|
11
|
|
29,830
|
26,924
|
11
|
11
|
|
Total
revenue
|
34,176
|
31,207
|
10
|
|
34,176
|
31,207
|
10
|
10
|
|
Share of more
predictable revenue (in %)
|
83
|
81
|
3pp
|
|
83
|
81
|
3pp
|
|
|
Cloud gross
profit
|
12,481
|
9,780
|
28
|
|
12,559
|
9,821
|
28
|
28
|
|
Gross profit
|
24,932
|
22,534
|
11
|
|
25,011
|
22,603
|
11
|
11
|
|
Operating profit
(loss)
|
4,665
|
5,799
|
–20
|
|
8,153
|
6,514
|
25
|
26
|
|
Profit (loss) after tax
from continuing operations
|
3,150
|
3,600
|
–13
|
|
5,279
|
4,321
|
22
|
|
|
Profit (loss) after
tax5
|
3,150
|
5,964
|
–47
|
|
5,279
|
6,103
|
–13
|
|
|
Earnings per share -
Basic (in €) from continuing operations
|
2.68
|
3.11
|
–14
|
|
4.53
|
3.72
|
22
|
|
|
Earnings per share -
Basic (in €)5
|
2.68
|
5.26
|
–49
|
|
4.53
|
5.51
|
–18
|
|
|
Net cash flows from
operating activities from continuing operations
|
5,220
|
6,210
|
–16
|
|
|
|
|
|
|
Free cash
flow
|
|
|
|
|
4,113
|
5,093
|
–19
|
|
|
|
1 For a
breakdown of the individual adjustments see table "Non-IFRS
Operating Expense Adjustments by Functional Areas" in this
Quarterly Statement.
2 Cloud ERP Suite references the portfolio of
strategic Software-as-a-Service (SaaS) and Platform-as-a-Service
(PaaS) solutions that are tightly integrated with our core ERP
solutions and are included in key commercial packages, such as RISE
with SAP. The following offerings contribute to Cloud ERP Suite
revenue: SAP S/4HANA Cloud, SAP Business Technology Platform, and
core solutions for HR and payroll, spend management, commerce,
customer data solutions, business process transformation, and
working capital management. For additional information and
historical data on Cloud ERP Suite, see SAP's Reporting
Framework.
3 Extension Suite references SAP's remaining SaaS
and PaaS solutions that supplement and extend the functional
coverage of the Cloud ERP Suite.
4 Infrastructure as a service (IaaS): The major
portion of IaaS comes from SAP HANA Enterprise Cloud.
5 From continuing and discontinued
operations.
|
Financial Highlights1
Fourth Quarter 2024
In the fourth quarter, current cloud backlog grew by 32% to
€18.08 billion and was up 29% at constant currencies. Cloud revenue
was up 27% to €4.71 billion and up 27% at constant currencies,
fueled by Cloud ERP Suite revenue, which was up 35% to €3.95
billion and up 35% at constant currencies.
Software licenses revenue decreased by 18% to €0.68 billion and
was down 19% at constant currencies. Cloud and software revenue was
up 12% to €8.27 billion and up 11% at constant currencies. Services
revenue was up 2% to €1.11 billion and up 2% at constant
currencies. Total revenue was up 11% to €9.38 billion and up 10% at
constant currencies.
The share of more predictable revenue increased by 4 percentage
points to 81% in the fourth quarter.
IFRS cloud gross profit was up 29% to €3.43 billion. Non-IFRS
cloud gross profit was up 30% to €3.46 billion and was up 29% at
constant currencies. IFRS Cloud gross margin was up 1.0 percentage
points to 72.8%, non-IFRS cloud gross margin up 1.3 percentage
points to 73.5% and up 1.4 percentage points at constant
currencies.
IFRS operating profit was up 6% to €2.02 billion and IFRS
operating margin decreased by 1.0 percentage points to 21.5%.
Non-IFRS operating profit was up 24% to €2.44 billion and was up
24% at constant currencies, non-IFRS operating margin increased by
2.7 percentage points to 26.0% and was up 2.9 percentage points to
26.1% at constant currencies. IFRS and non-IFRS operating profit
was mainly driven by a strong performance in SAP's software
licenses and support business as well as disciplined execution of
the 2024 transformation program. In addition, IFRS operating profit
was negatively impacted by restructuring expenses associated with
the 2024 transformation program.
IFRS earnings per share (basic) increased 31% to €1.37. Non-IFRS
earnings per share (basic) increased 24% to €1.40. IFRS effective
tax rate was 26.8% (Q4/2023: 33.6%) and non-IFRS effective tax rate
was 30.0% (Q4/2023: 32.5%). For IFRS, the year-over-year decrease
mainly resulted from changes in tax-exempt income and prior-year
taxes. For non-IFRS, the year-over-year decrease mainly resulted
from prior-year taxes.
Free cash flow in the fourth quarter came in at –€0.92 billion
(Q4 2023: €1.67 billion). The year over year decline was mainly
attributable to a €1.7 billion payout under the 2024 transformation
program.
Full Year 2024
SAP performed against its financial outlook as follows:
|
Actual 2023
|
2024 Outlook
(as of January 23)
|
Revised 2024
Outlook
(as of October 21)
|
Actual 2024
|
|
Cloud revenue (at
constant currencies)
|
€13.66
billion
|
€17.0 – 17.3
billion
|
€17.0 – 17.3
billion
|
€17.21
billion
|
|
Cloud and software
revenue (at constant currencies)
|
€26.92
billion
|
€29.0 – 29.5
billion
|
€29.5 – 29.8
billion
|
€29.96
billion
|
|
Operating profit
(non-IFRS, at constant currencies)
|
€6.51
billion
|
€7.6 – 7.9
billion
|
€7.8 – 8.0
billion
|
€8.23
billion
|
|
Free cash
flow
|
€5.09
billion
|
approx. €3.5
billion
|
€3.5 – 4.0
billion
|
€4.11
billion
|
|
Effective tax rate
(non-IFRS)
|
30.3 %
|
approx. 32%
|
approx. 32%
|
32.3 %
|
As of December 31, total cloud
backlog was up 43% to €63.29 billion and up 40% at constant
currencies.
For the full year, cloud revenue was up 25% to €17.14 billion
and up 26% at constant currencies. Software licenses revenue was
down 21% to €1.40 billion and down 21% at constant currencies.
Cloud and software revenue was up 11% to €29.83 billion and up 11%
at constant currencies. Services revenue was up 1% to €4.35 billion
and up 2% at constant currencies. Total revenue was up 10% to
€34.18 billion and up 10% at constant currencies.
The share of more predictable revenue increased by 3 percentage
points year over year to 83% for the full year 2024.
IFRS cloud gross profit was up 28% to €12.48 billion. Non-IFRS
cloud gross profit was up 28% to €12.56 billion and was up 28% at
constant currencies. IFRS cloud gross margin was up 1.2 percentage
points to 72.8%, non-IFRS cloud gross margin up 1.4 percentage
points to 73.3% and up 1.4 percentage points at constant
currencies.
IFRS operating profit was down 20% to €4.66 billion and IFRS
operating margin decreased by 4.9 percentage points to 13.6%. The
decline in IFRS operating profit was due to restructuring expenses
of approximately €3.1 billion associated with the 2024
transformation program. Non-IFRS operating profit increased 25% to
€8.15 billion and increased 26% at constant currencies, non-IFRS
operating margin increased by 3.0 percentage points to 23.9% and
was up 3.1 percentage points to 24.0% at constant currencies.
IFRS earnings per share (basic) decreased 14% to €2.68 and
non-IFRS earnings per share (basic) increased 22% to €4.53. IFRS
effective tax rate was 33.9% (FY/2023: 32.6%) and non-IFRS
effective tax rate was 32.3% (FY/2023: 30.3%). For IFRS, the
year-over-year increase mainly resulted from a temporary inability
to offset withholding taxes in Germany due to tax losses in 2024 resulting
from restructuring, which was partly compensated by changes in
tax-exempt income. For non-IFRS, the year-over-year increase mainly
resulted from a temporary inability to offset withholding taxes in
Germany due to tax losses in 2024
resulting from restructuring.
Free cash flow for the full year was down 19% to €4.11 billion.
While higher payouts for restructuring of €2.5 billion and
share-based compensation of €1.3 billion weighed on free cash flow,
the performance was supported by SAP's increased profitability and
improvements in working capital. At year end, net liquidity was
€1.70 billion.
Non-Financial Performance 2024
Customer Net Promoter Score (NPS) increased 3 points year over
year to 12 in 2024, at the upper end of the outlook range.
After dropping to 72% in the first half of the year, the
employee engagement index recovered to 76% in the second half of
2024. As a result, the employee engagement index for the full-year
2024 decreased 6 percentage points year-over-year to 74%, at the
upper end of the revised outlook range.
The proportion of women in executive roles increased 0.3
percentage points to 22.5%, in line with the outlook.
Total carbon emissions were flat at 6.9 Mt in 2024, while we
initially guided for a steady decrease.
Share Repurchase Program
In May 2023, SAP announced a share
repurchase program with an aggregate volume of up to €5 billion and
a term until December 31, 2025. As of
December 31, 2024, SAP had
repurchased 18,429,480 shares at an average price of €162.46
resulting in a purchased volume of approximately €3.0 billion under
the program.
2024 Transformation Program: Focus on scalability of
operations and key strategic growth areas
In January 2024, SAP announced a
company-wide restructuring program which is anticipated to conclude
in early 2025. Overall expenses associated with the program are
estimated to be approximately €3.2 billion. Restructuring payouts
amounted to €1.7 billion in the fourth quarter and €2.5 billion for
the full-year 2024. In 2025, approximately €0.7bn are expected to
be paid out.
Business Highlights
In the fourth quarter, customers around the globe continued to
choose "RISE with SAP" to drive their end-to-end business
transformations. These customers included: BASF, BERNMOBIL, BP
International, Brose, Chevron Corporation, Colgate-Palmolive,
Conagra Brands, dm-drogerie markt, EY, Ford Motor Company,
Fressnapf, Freudenberg, FrieslandCampina, Hannover Medical School,
K+S, Lanxess, Menasha Corporation, Mitie, NTPC, NTT DATA,
Red Bull, Robert Bosch, Schaeffler Technologies, Schindler
Group, The South Carolina Department of Administration, STADA
Arzneimittel, and voestalpine.
Coles Group, Commerz Real, General Motors, H.B. Fuller, Hyundai
Glovis, MAHLE International, SKF Group, and Trent Limited went live
on SAP S/4HANA Cloud in the fourth quarter.
ACTUM Digital, CiboVita, Databricks, Inetum, Medical University
of Vienna, msg systems, North
Yorkshire Council, Outreach, and Warrington Borough Council chose
"GROW with SAP", an offering helping customers adopt cloud ERP with
speed, predictability, and continuous innovation.
Key customer wins across SAP's solution portfolio included: ABB,
AOK Federal Association, B. Braun Group, Bayer, Digital China,
KNAPP, Mengniu, Migros, Mondi, PwC Germany, SA Power Networks,
Salling Group, SICK, and Unity Programme.
Ayala Land, Carlisle Companies,
CP Foods, IBM, and Tchibo went live on SAP solutions.
In the fourth quarter, SAP's cloud revenue performance was
particularly strong in APJ and EMEA and robust in the Americas
region. China, France, India, Italy,
South Korea and the Netherlands had outstanding performances,
while Canada, Germany, Japan and the U.S. were particularly
strong.
For the full year, China,
Germany, India, Japan,
and Spain all had outstanding
performances in cloud revenue while Brazil, Canada and Saudia
Arabia were particularly strong.
On October 8, SAP announced
powerful new capabilities that complement and extend Joule,
including collaborative AI agents imbued with custom skills to
complete complex cross-disciplinary tasks.
On December 3, SAP and AWS
announced GROW with SAP on AWS, which will allow customers of all
sizes to rapidly deploy SAP's enterprise resource planning (ERP)
solution while leveraging the reliability, security and scalability
of the world's most broadly adopted cloud.
On December 16, SAP announced the
general availability of the SAP Green Ledger solution, the most
comprehensive carbon accounting system globally that integrates
directly with customers' financial data.
Outlook 2025
The outlook 2025 replaces SAP's former Ambition 2025.
Financial Outlook 2025
For 2025, SAP now expects:
- €21.6 – 21.9 billion cloud revenue at constant currencies
(2024: €17.14 billion), up 26% to 28% at constant currencies.
- €33.1 – 33.6 billion cloud and software revenue at constant
currencies (2024: €29.83 billion), up 11% to 13% at constant
currencies.
- €10.3 – 10.6 billion non-IFRS operating profit at constant
currencies (2024: €8.15 billion), up 26% to 30% at constant
currencies.
- Approximately €8.0 billion free cash flow at actual currencies
(2024: €4.22 billion), based on updated free cash flow definition
(see section (N) 2025 Reporting Changes).
- An effective tax rate (non-IFRS) of approximately 32% (2024:
32.3%)2.
The company also expects current cloud backlog growth to
slightly decelerate in 2025.
While SAP's 2025 financial outlook for the income statement
parameters is at constant currencies (including an average exchange
rate of 1.08 USD per EUR), actual
currency reported figures are expected to be impacted by currency
exchange rate fluctuations as the company progresses through the
year, as reflected in the table below.
Currency Impact Assuming December 31,
2024 Rates Apply for 2025
|
In percentage
points
|
Q1 2025
|
FY 2025
|
|
Cloud revenue
growth
|
+2.5pp
|
+2.5pp
|
|
Cloud and software
revenue growth
|
+2.0pp
|
+2.0pp
|
|
Operating profit growth
(non-IFRS)
|
+5.0pp
|
+4.0pp
|
This includes an exchange rate of 1.04
USD per EUR.
Non-Financial Outlook 2025
For 2025, SAP now expects:
- A Customer Net Promoter Score of 12 to 16.
- The Employee Engagement Index to be in a range of 74% to
78%.
- To steadily increase the share of women in executive
roles.
- To steadily decrease carbon emissions across the relevant value
chain.
Additional Information
This press release and all information therein is preliminary
and unaudited. Due to rounding, numbers may not add up precisely.
The full Q4 and FY 2024 Quarterly Statement can be downloaded from:
https://www.sap.com/investors/sap-2024-q4-statement.
SAP Annual General Meeting of Shareholders
The Annual General Meeting of Shareholders will take place on
May 13, 2025, as a virtual event. The
whole event will be webcast on the Company's website and online
voting options will be available for shareholders. Further details
will be published at https://www.sap.com/agm in early
April.
SAP Performance Measures
For more information about our key growth metrics and
performance measures, their calculation, their usefulness, and
their limitations, please refer to the following document on our
Investor Relations
website: https://www.sap.com/investors/performance-measures
Webcast
SAP senior management will host a financial analyst conference
call on Tuesday, January 28th at
07:00 AM (CET) / 06:00 AM (GMT) / 1:00 AM
(EST) / Monday, January 27th
10:00 PM (PST), followed by a press
conference at 10:00 AM (CET) /
9:00 AM (GMT) / 4:00 AM (EST) / 1:00 AM
(PST). Both conferences will be webcast on the Company's
website at https://www.sap.com/investor and will be available
for replay. Supplementary financial information pertaining to the
fourth quarter results can be found at
https://www.sap.com/investor.
About SAP
As a global leader in enterprise applications and business AI,
SAP (NYSE:SAP) stands at the nexus of business and technology. For
over 50 years, organizations have trusted SAP to bring out their
best by uniting business-critical operations spanning finance,
procurement, HR, supply chain, and customer experience. For more
information, visit www.sap.com.
|
For customers
interested in learning more about SAP products:
|
|
|
Global Customer
Center:
|
+49 180
534-34-24
|
|
United States
Only:
|
+1 (800) 872-1SAP
(+1-800-872-1727)
|
This document contains 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
information regarding these risks and uncertainties may be found in
our filings with the Securities and Exchange Commission, including
but not limited to the risk factors section of SAP's 2023 Annual
Report on Form 20-F.
© 2025 SAP SE. All rights reserved.
SAP and other SAP products and services mentioned herein as well as
their respective logos are trademarks or registered trademarks of
SAP SE in Germany and other
countries. Please see https://www.sap.com/copyright for additional
trademark information and notices.
1 The Q4 2024 results were also impacted by
other effects. For details, please refer to the disclosures on page
23 of this document.
2 The effective tax rate (non-IFRS) is a
non-IFRS financial measure and is presented for supplemental
informational purposes only. We do not provide an outlook for the
effective tax rate (IFRS) due to the uncertainty and potential
variability of gains and losses associated with equity securities,
which are reconciling items between the two effective tax rates
(non-IFRS and IFRS). These items cannot be provided without
unreasonable efforts but could have a significant impact on our
future effective tax rate (IFRS).
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