SAP SE has released its financial results for the first quarter of 2024, showcasing significant growth in cloud revenue. The company reported a 24% increase in cloud revenue and a 25% rise at constant currencies. This growth was supported by a notable 32% increase in Cloud ERP Suite revenue at constant currencies.
The current cloud backlog for SAP stands at €14.2 billion, marking a 27% increase and a 28% rise at constant currencies. Additionally, the IFRS cloud gross profit saw a 27% uptick, while the non-IFRS cloud gross profit also increased by 27% and 28% at constant currencies.
Despite an IFRS operating loss of -€0.8 billion due to a €2.2 billion restructuring provision, the non-IFRS operating profit saw a 16% increase and a 19% rise at constant currencies. This growth included higher share-based compensation resulting from a strong share price increase.
Looking ahead, SAP reaffirmed its outlook for 2024, expressing confidence in achieving its goals for the year. The company highlighted key growth drivers such as Business AI, cross-selling across the cloud portfolio, and attracting new customers, particularly in the midmarket segment. The robust growth of the current cloud backlog indicates strong momentum for SAP.
Christian Klein, the CEO of SAP, stated, ‘We’re off to a great start in 2024 and we’re confident we’ll achieve our goals for the year. Our transformation program is well on track, and we have powerful growth drivers in place to capture this momentum and increase efficiency.’
Dominik Asam, the CFO of SAP, commented on the successful implementation of the transformation program in the first quarter. He highlighted the growth momentum of the Cloud ERP Suite, reflecting the market’s shift towards integrated cloud solutions.
For press inquiries, contact Joellen Perry at +1 (650) 445-6780 or joellen.perry@sap.com (PT) and Daniel Reinhardt at +49 (6227) 7-40201 or daniel.reinhardt@sap.com (CET).
