Christian Klein – CEO SAP

SAP has announced its financial results for the second quarter of fiscal year 2024, showing notable growth and surpassing analyst expectations. The company’s total revenue reached €8,29 billion, a 10% increase compared to the same quarter last year, exceeding the consensus estimate of €8,25 billion.

The accelerated growth in the cloud sector continued in Q2 2024, with the current cloud backlog increasing by 28% to €1.481 billion. Cloud revenue rose by 25%, reaching €4,15 billion. A significant portion of this growth was driven by the cloud ERP Suite, which saw a 33% increase in revenue to €3,41 billion. This increase in cloud revenue is largely attributed to the use of Business AI.

SAP’s proportion of predictable revenue advanced by two percentage points in the second quarter of 2024, reaching 84%. The strong Q2 results boost confidence in the company’s expectations for next year, with an anticipated operational profit of €10,2 billion in 2025, slightly above the initial prediction of €10,0 billion. This revision is based on efficiency gains from SAP’s transformation program.

Christian Klein, CEO of SAP, commented, “The growth momentum in our cloud division remained strong in Q2 2024, thanks to Business AI supporting even more clients. We continue to drive company transformation with increased ambitions for operational profit in 2025. Meanwhile, we are investing to maintain our leadership in Business AI. Given the progress to date and our future plans, we are confident in achieving accelerated growth through 2027.”

Dominik Asam, CFO of SAP, added, “We remain focused on achieving this year’s objectives. Cloud backlog growth in the latter half of 2024, especially in Q4, will be crucial for establishing a solid foundation for our 2025 cloud revenue ambitions. Simultaneously, we will continue implementing our transformation plan to achieve our free cash flow target for 2025, despite expected restructuring cash outflows extending into next year.”

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