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SAP SE SAP reported fourth-quarter 2024 non-IFRS earnings per share (EPS) of €1.40, which increased 24% from the year-ago quarter.
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SAP achieved significant strides in cloud adoption, with half of the fourth-quarter cloud order entries incorporating artificial intelligence (AI) capabilities. This highlights SAP's growing focus on Business AI, which is poised to play a pivotal role in driving revenue growth through 2027. The company expects to continue its transformation journey, aligning with the ambitious goals of its "Ambition 2025" strategy.
Driven by momentum in the cloud business, SAP reported total revenues on a non-IFRS basis of €9.38 billion, which increased 11% year over year (up 10% at constant currency or cc).
Cloud Results
The current cloud backlog — a key indicator of go-to-market success in cloud business — surged 32% (up 29% at cc) to €18.08 billion. As of Dec. 31, 2024, the total cloud backlog was up 43% (up 40% at cc) to €63.29 billion.
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On a non-IFRS basis, the Cloud and software segment (88.2% of total revenues) registered revenues of €8.27 billion, rising 12% year over year (up 11% at cc).
Cloud revenues were €4.71 billion, up 27% year over year (both at nominal and cc basis) on a non-IFRS basis, powered by a solid 35% growth in Cloud ERP Suite revenues, reaching €3.95 billion. SAP’s cloud business gained robust momentum across China, France, India, Italy, South Korea and the Netherlands. It remained strong in Canada, Germany, Japan and the United States.
Software licenses and support revenues totaled €3.56 billion, which decreased 3% (down 4% at cc) year over year. Non-IFRS software license revenues of €0.68 billion declined 18% (down 19% at cc) year over year.
Services business (11.8% of total revenues) posted revenues of €1.11 billion, up 2% year over year (both at nominal and cc basis).
Expanding Clientele Bodes Well
Rise with SAP solution was adopted by clients, including 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.
In the reported quarter, 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.
The "GROW with SAP" solution, which focuses on aiding smaller businesses to adopt cloud ERP solutions quickly and efficiently, saw notable wins from companies like ACTUM Digital, CiboVita, Databricks, Inetum, Medical University of Vienna, msg systems, North Yorkshire Council, Outreach and Warrington Borough Council.
Major global brands across various industries, including ABB, AOK Federal Association, B. Braun Group, Bayer, Digital China, KNAPP, Mengniu, Migros, Mondi, PwC Germany, SA Power Networks, Salling Group, SICK, Unity Programme, Ayala Land, Carlisle Companies, CP Foods, IBM and Tchibo, adopted SAP’s solutions.