SAP Reiterates 2024 Financial Outlook; Sees FY24 €17 Billion – 17.3 Billion Cloud Revenue, Sees €7.6 Billion – 7.9 Billion Non-IFRS Operating Profit, Sees FY24 €29 Billion - €29.5 Billion Cloud And Software Revenue At Constant Currencies; Sees FY25 Non-IFRS Operating Profit Of ~€10.2 Billion, Sees FY25 Cloud Revenue Of More Than €21.5 Billion
Financial Outlook 2024
SAP's financial outlook 2024 is based on SAP's updated non-IFRS definition of profit measures which, beginning in 2024, include share-based compensation expenses and exclude gains and losses from equity securities, net. For more details, please refer to the Reporting Framework section on our Investor Relations website: .
SAP continues to expect:
- €17.0 – 17.3 billion cloud revenue at constant currencies (2023: €13.66 billion), up 24% to 27% at constant currencies.
- €29.0 – 29.5 billion cloud and software revenue at constant currencies (2023: €26.92 billion), up 8% to 10% at constant currencies.
- €7.6 – 7.9 billion non-IFRS operating profit at constant currencies (2023: €6.51 billion), up 17% to 21% at constant currencies.
- Free cash flow of approximately €3.5 billion (2023: €5.09 billion).
- An effective tax rate (non-IFRS) of approximately 32% (2023: 30.3%)2.
While SAP's 2024 financial outlook is at constant currencies, 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 June 30, 2024 Rates Apply for 2024
| In percentage points | Q3 2024 | FY 2024 |
| Cloud revenue growth | +0.5pp | –0.5pp |
| Cloud and software revenue growth | +0.5pp | –0.5pp |
| Operating profit growth (non-IFRS) | +0.0pp | –1.5pp |
Non-Financial Outlook 2024
SAP now expects the Employee Engagement Index to be in a range of 70% to 74% in 2024 (previously: 76% to 80%).
In 2024, SAP continues to expect:
- A Customer Net Promoter Score of 9 to 13.
- To steadily decrease carbon emissions across the relevant value chain, in line with our target of achieving Net Zero carbon emissions by 2030.
- To steadily increase the number of women in executive roles in line with our end of year 2027 target to achieve 25%.
Ambition 2025
SAP is updating its financial ambition 2025, reflecting the anticipated incremental benefits from the transformation program.
By 2025, SAP now expects:
- Non-IFRS operating profit of approximately €10.2 billion (previously: approximately €10 billion).
SAP continues to expect:
- Cloud revenue of more than €21.5 billion.
- Total revenue of more than €37.5 billion.
- Non-IFRS cloud gross profit of approximately €16.2 billion.
- Free cash flow of approximately €8.0 billion (now including an anticipated mid-triple-digit million Euro restructuring payout in 2025 associated with the 2024 transformation program).
- A share of more predictable revenue of approximately 86%.
The 2025 financial ambition is based on an exchange rate of 1.10 USD per EUR.
Non-Financial Ambition 2025
For 2025, SAP now aims to increase the Employee Engagement Index (previously: Steadily increasing the Employee Engagement Index).
SAP continues to aim for
- Steadily increasing the Customer Net Promoter Score.
The 2025 non-financial ambitions are in addition to our medium-term targets of achieving Net Zero carbon emissions across the value chain by 2030 and reaching 25% women in executive roles by the end of 2027.