July 23, 2024 - $SAP SE (SAP.US)$shares surged 6.07% to $212.63 in pre-market trading on Tuesday. The company announced its financial results for the second quarter ended June 30, 2024.
Financial Highlights
Current cloud backlog of €14.8 billion, up 28%, both at nominal and constant currencies.
Cloud revenue up 25%, underpinned by 33% Cloud ERP Suite revenue growth, all at nominal and constant currencies.
Total revenue up 10%, both at nominal and constant currencies.IFRS cloud gross profit up 29%, non-IFRS cloud gross profit up 28% and up 29% at constant currencies.
IFRS operating profit down 11% due to restructuring expenses of €0.6 billion. Non-IFRS operating profit up 33% and up 35% at constant currencies.
2024 financial outlook reiterated. 2025 operating profit ambition increased to reflect anticipated incremental efficiency gains from expanded transformation program.
“Our cloud growth momentum remained strong in Q2, with Business AI enabling many deals. We continue to execute on our transformation with great discipline, leading to an increase in our operating profit ambition for 2025. At the same time, we continue to invest into our transformation to be the leader in Business AI. Given our progress and strong pipeline, we are confident to achieve accelerating topline growth through 2027.” said Christian Klein, CEO of SAP SE.
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 June 30, 2024, SAP had repurchased 12,895,525 shares at an average price of €145.20 resulting in a purchased volume of approximately €1.87 billion under the program.
Financial Outlook 2024
€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%).
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.
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