UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO SECTION 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
January 29, 2025
Commission file number:
001-14251
SAP EUROPEAN COMPANY
(Translation of registrant's name into English)
Dietmar-Hopp-Allee 16
69190 Walldorf
Federal
Republic of Germany
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
| Form 20-F | [X] |
Form
40-F |
[ ] |
SAP SE
FORM 6-K
On January
28, 2025, SAP SE, (“SAP"), filed a quarterly statement with Deutsche Boerse AG for the fourth quarter ended December
31, 2024 (the “Quarterly Statement”). The Quarterly Statement is attached as Exhibit 99.1 hereto and incorporated by reference
herein.
This Quarterly Statement discloses certain non-IFRS measures. These
measures are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures. The non-IFRS financial measures
that we report should be considered in addition to, and not as substitutes for or superior to, revenue, operating income, cash flows,
or other measures of financial performance prepared in accordance with IFRS.
Please refer to Explanations of Non-IFRS
Measures online (www.sap.com/about/investor/index.epx) for further information regarding
the non-IFRS measures.
Any statements contained in this document that are not historical facts
are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate,"
"believe," "estimate," "expect," "forecast," "intend," "may," "plan,"
"project," "predict," "should" and "will" and similar expressions as they relate to SAP are intended
to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from
expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities
and Exchange Commission (the "SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
EXHIBITS
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| By: | /s/ Christopher Sessar |
| | | Name: |
Dr. Christopher Sessar |
| | | Title: |
Chief Accounting Officer |
| By: | /s/ Julia Zicke |
| | | Name: |
Dr. Julia Zicke |
| | | Title: |
Head of External Reporting and Accounting Technology |
Date: January 29, 2025
EXHIBIT INDEX
Exhibit 99.1
 | Quarterly
Statement Q4 2024 |
SAP Announces Q4 and FY 2024 Results
| · | SAP meets or exceeds all financial outlook parameters for FY2024 |
| · | Current cloud backlog of €18.1 billion, up 32% and up 29% at constant currencies |
| · | Total cloud backlog of €63.3 billion, up 43% and up 40% at constant currencies |
| · | Cloud revenue up 25% and up 26% at constant currencies in FY2024 |
| · | Cloud ERP Suite revenue up 33% and up 34% at constant currencies in FY2024 |
| · | Total revenue up 10% and up 10% at constant currencies in FY2024 |
| · | IFRS operating profit down 20%, non-IFRS operating profit up 25% and up 26% at constant currencies in FY2024 |
| · | 2025 outlook anticipates accelerating cloud revenue growth |
FY 2024 | in € millions,
unless otherwise stated
| Quarterly
Statement Q4 2024 |
Walldorf, Germany –
January 28, 2025
SAP SE (NYSE: SAP) announced today its financial results for the fourth quarter and fiscal year ended December 31, 2024.
Christian
Klein, CEO:
Q4 was a strong finish to the year, with half
of our cloud order entry including AI. Looking at the full year, we exceeded our cloud goals, accelerating cloud revenue and current cloud
backlog growth against a much larger base. Total cloud backlog now stands at €63 billion, up 40%. Revenue growth has returned to
double-digits. Looking ahead, our strong position in data and Business AI gives us additional confidence that we will accelerate revenue
growth through 2027.
Dominik
Asam, CFO:
We are pleased with the strong close to 2024,
where we exceeded our cloud and software revenue, non-IFRS operating profit, and free cash flow outlook. With current cloud backlog growth
of 29%, we've demonstrated the strength of our strategy and our ability to deliver on our commitments. This progress solidly aligns with
the Ambition 2025 we set four years ago and positions us well for continued growth this year and beyond.
Financial Performance
Group results at a glance – Fourth quarter 2024
| |
IFRS |
|
Non-IFRS1 |
| € million, unless otherwise stated |
Q4
2024 |
Q4 2023 |
∆ in % |
|
Q4
2024 |
Q4 2023 |
∆ in % |
∆ in %
const. curr. |
| SaaS/PaaS |
4,585 |
3,515 |
30 |
|
4,585 |
3,515 |
30 |
30 |
| Thereof Cloud ERP Suite2 |
3,949 |
2,931 |
35 |
|
3,949 |
2,931 |
35 |
35 |
| Thereof Extension Suite3 |
636 |
584 |
9 |
|
636 |
584 |
9 |
6 |
| IaaS4 |
123 |
184 |
–33 |
|
123 |
184 |
–33 |
–33 |
| Cloud revenue |
4,708 |
3,699 |
27 |
|
4,708 |
3,699 |
27 |
27 |
| Cloud and software revenue |
8,267 |
7,382 |
12 |
|
8,267 |
7,382 |
12 |
11 |
| Total revenue |
9,377 |
8,468 |
11 |
|
9,377 |
8,468 |
11 |
10 |
| Share of more predictable revenue (in %) |
81 |
77 |
4pp |
|
81 |
77 |
4pp |
|
| Cloud gross profit |
3,429 |
2,658 |
29 |
|
3,458 |
2,669 |
30 |
29 |
| Gross profit |
6,943 |
6,204 |
12 |
|
6,972 |
6,216 |
12 |
12 |
| Operating profit (loss) |
2,016 |
1,902 |
6 |
|
2,436 |
1,969 |
24 |
24 |
| Profit (loss) after tax from continuing operations |
1,616 |
1,201 |
35 |
|
1,619 |
1,302 |
24 |
|
| Profit (loss) after tax5 |
1,616 |
1,201 |
35 |
|
1,619 |
1,302 |
24 |
|
| Earnings per share - Basic (in €) from continuing operations |
1.37 |
1.05 |
31 |
|
1.40 |
1.12 |
24 |
|
| Earnings per share - Basic (in €)5 |
1.37 |
1.05 |
31 |
|
1.40 |
1.12 |
24 |
|
| Net cash flows from operating activities from continuing operations |
–551 |
1,926 |
NA |
|
|
|
|
|
| Free cash flow |
|
|
|
|
–918 |
1,670 |
NA |
|
1
For a breakdown of the individual adjustments see table “Non-IFRS Operating Expense Adjustments by Functional Areas” in this
Quarterly Statement.
2
Cloud ERP Suite references the portfolio of strategic Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) solutions that are
tightly integrated with our core ERP solutions and are included in key commercial packages, such as RISE with SAP. The following offerings
contribute to Cloud ERP Suite revenue: SAP S/4HANA Cloud, SAP Business Technology Platform, and core solutions for HR and payroll, spend
management, commerce, customer data solutions, business process transformation, and working capital management. For additional information
and historical data on Cloud ERP Suite, see SAP’s Reporting
Framework.
3
Extension Suite references SAP’s remaining SaaS and PaaS solutions that supplement and extend the functional coverage of the Cloud
ERP Suite.
4
Infrastructure as a service (IaaS): The major portion of IaaS comes from SAP HANA Enterprise Cloud.
5
From continuing and discontinued operations.
| Quarterly
Statement Q4 2024 |
Group results at a glance – Full year 2024
| |
IFRS |
|
Non-IFRS1 |
| € million, unless otherwise stated |
Q1–Q4
2024 |
Q1–Q4
2023 |
∆ in % |
|
Q1–Q4
2024 |
Q1–Q4
2023 |
∆ in % |
∆ in % const. curr. |
| SaaS/PaaS |
16,601 |
12,916 |
29 |
|
16,601 |
12,916 |
29 |
29 |
| Thereof Cloud ERP Suite revenue2 |
14,166 |
10,626 |
33 |
|
14,166 |
10,626 |
33 |
34 |
| Thereof Extension Suite revenue3 |
2,435 |
2,290 |
6 |
|
2,435 |
2,290 |
6 |
6 |
| IaaS4 |
540 |
748 |
–28 |
|
540 |
748 |
–28 |
–27 |
| Cloud revenue |
17,141 |
13,664 |
25 |
|
17,141 |
13,664 |
25 |
26 |
| Cloud and software revenue |
29,830 |
26,924 |
11 |
|
29,830 |
26,924 |
11 |
11 |
| Total revenue |
34,176 |
31,207 |
10 |
|
34,176 |
31,207 |
10 |
10 |
| Share of more predictable revenue (in %) |
83 |
81 |
3pp |
|
83 |
81 |
3pp |
|
| Cloud gross profit |
12,481 |
9,780 |
28 |
|
12,559 |
9,821 |
28 |
28 |
| Gross profit |
24,932 |
22,534 |
11 |
|
25,011 |
22,603 |
11 |
11 |
| Operating profit (loss) |
4,665 |
5,799 |
–20 |
|
8,153 |
6,514 |
25 |
26 |
| Profit (loss) after tax from continuing operations |
3,150 |
3,600 |
–13 |
|
5,279 |
4,321 |
22 |
|
| Profit (loss) after tax5 |
3,150 |
5,964 |
–47 |
|
5,279 |
6,103 |
–13 |
|
| Earnings per share - Basic (in €) from continuing operations |
2.68 |
3.11 |
–14 |
|
4.53 |
3.72 |
22 |
|
| Earnings per share - Basic (in €)5 |
2.68 |
5.26 |
–49 |
|
4.53 |
5.51 |
–18 |
|
| Net cash flows from operating activities from continuing operations |
5,220 |
6,210 |
–16 |
|
|
|
|
|
| Free cash flow |
|
|
|
|
4,113 |
5,093 |
–19 |
|
1
For a breakdown of the individual adjustments see table “Non-IFRS Operating Expense Adjustments by Functional Areas” in this
Quarterly Statement.
2
Cloud ERP Suite references the portfolio of strategic Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) solutions that are
tightly integrated with our core ERP solutions and are included in key commercial packages, such as RISE with SAP. The following offerings
contribute to Cloud ERP Suite revenue: SAP S/4HANA Cloud, SAP Business Technology Platform, and core solutions for HR and payroll, spend
management, commerce, customer data solutions, business process transformation, and working capital management. For additional information
and historical data on Cloud ERP Suite, see SAP’s Reporting
Framework.
3
Extension Suite references SAP’s remaining SaaS and PaaS solutions that supplement and extend the functional coverage of the Cloud
ERP Suite.
4
Infrastructure as a service (IaaS): The major portion of IaaS comes from SAP HANA Enterprise Cloud.
5
From continuing and discontinued operations.
Financial Highlights1
Fourth Quarter 2024
In the fourth quarter, current cloud backlog grew by 32% to €18.08
billion and was up 29% at constant currencies. Cloud revenue was up 27% to €4.71 billion and up 27% at constant currencies, fueled
by Cloud ERP Suite revenue, which was up 35% to €3.95 billion and up 35% at constant currencies.
Software licenses revenue decreased by 18% to €0.68 billion and
was down 19% at constant currencies. Cloud and software revenue was up 12% to €8.27 billion and up 11% at constant currencies. Services
revenue was up 2% to €1.11 billion and up 2% at constant currencies. Total revenue was up 11% to €9.38 billion and up 10% at
constant currencies.
The share of more predictable revenue increased by 4 percentage points
to 81% in the fourth quarter.
IFRS cloud gross profit was up 29% to €3.43 billion. Non-IFRS cloud
gross profit was up 30% to €3.46 billion and was up 29% at constant currencies. IFRS Cloud gross margin was up 1.0 percentage points
to 72.8%, non-IFRS cloud gross margin up 1.3 percentage points to 73.5% and up 1.4 percentage points at constant currencies.
IFRS operating profit was up 6% to €2.02 billion and IFRS operating
margin decreased by 1.0 percentage points to 21.5%. Non-IFRS operating profit was up 24% to €2.44 billion and was up 24% at constant
currencies, non-IFRS operating margin increased by 2.7 percentage points to 26.0% and was up 2.9 percentage points to 26.1% at constant
currencies. IFRS and non-IFRS operating profit was mainly driven by a strong performance in SAP’s software licenses and support
business as well as disciplined execution of the 2024 transformation program. In addition, IFRS operating profit was negatively impacted
by restructuring expenses associated with the 2024 transformation program.
1 The Q4 2024 results were
also impacted by other effects. For details, please refer to the disclosures on page 23 of this document.
| Quarterly
Statement Q4 2024 |
IFRS earnings per share (basic) increased 31% to €1.37. Non-IFRS
earnings per share (basic) increased 24% to €1.40. IFRS effective tax rate was 26.8% (Q4/2023: 33.6%) and non-IFRS effective tax
rate was 30.0% (Q4/2023: 32.5%). For IFRS, the year-over-year decrease mainly resulted from changes in tax-exempt income and prior-year
taxes. For non-IFRS, the year-over-year decrease mainly resulted from prior-year taxes.
Free
cash flow in the fourth quarter came in at –€0.92 billion (Q4 2023: €1.67 billion).
The year over year decline was mainly attributable to a €1.7 billion payout under the 2024 transformation program.
Full Year 2024
SAP performed against its financial outlook as follows:
| |
Actual 2023 |
2024 Outlook
(as of January 23) |
Revised 2024 Outlook
(as of October 21) |
Actual 2024 |
| Cloud revenue (at constant currencies) |
€13.66 billion |
€17.0 – 17.3 billion |
€17.0 – 17.3 billion |
€17.21 billion |
| Cloud and software revenue (at constant currencies) |
€26.92 billion |
€29.0 – 29.5 billion |
€29.5 – 29.8 billion |
€29.96 billion |
| Operating profit (non-IFRS, at constant currencies) |
€6.51 billion |
€7.6 – 7.9 billion |
€7.8 – 8.0 billion |
€8.23 billion |
| Free cash flow |
€5.09 billion |
approx. €3.5 billion |
€3.5 – 4.0 billion |
€4.11 billion |
| Effective tax rate (non-IFRS) |
30.3% |
approx. 32% |
approx. 32% |
32.3% |
As of December 31, total cloud backlog was up 43%
to €63.29 billion and up 40% at constant currencies.
For the full year, cloud revenue was up 25% to €17.14
billion and up 26% at constant currencies. Software licenses revenue was down 21% to €1.40 billion and down 21% at constant currencies.
Cloud and software revenue was up 11% to €29.83 billion and up 11% at constant currencies. Services revenue was up 1% to €4.35
billion and up 2% at constant currencies. Total revenue was up 10% to €34.18 billion and up 10% at constant currencies.
The share of more predictable revenue increased
by 3 percentage points year over year to 83% for the full year 2024.
IFRS cloud gross profit was up 28% to €12.48 billion. Non-IFRS cloud
gross profit was up 28% to €12.56 billion and was up 28% at constant currencies. IFRS cloud gross margin was up 1.2 percentage points
to 72.8%, non-IFRS cloud gross margin up 1.4 percentage points to 73.3% and up 1.4 percentage points at constant currencies.
IFRS operating profit was down 20% to €4.66
billion and IFRS operating margin decreased by 4.9 percentage points to 13.6%. The decline in IFRS operating profit was due to restructuring
expenses of approximately €3.1 billion associated with the 2024 transformation program. Non-IFRS operating profit increased 25% to
€8.15 billion and increased 26% at constant currencies, non-IFRS operating margin increased by 3.0 percentage points to 23.9% and
was up 3.1 percentage points to 24.0% at constant currencies.
IFRS earnings per share (basic) decreased 14% to €2.68 and non-IFRS
earnings per share (basic) increased 22% to €4.53. IFRS effective tax rate was 33.9% (FY/2023: 32.6%) and non-IFRS effective tax
rate was 32.3% (FY/2023: 30.3%). For IFRS, the year-over-year increase mainly resulted from a temporary inability to offset withholding
taxes in Germany due to tax losses in 2024 resulting from restructuring, which was partly compensated by changes in tax-exempt income.
For non-IFRS, the year-over-year increase mainly resulted from a temporary inability to offset withholding taxes in Germany due to tax
losses in 2024 resulting from restructuring.
Free cash flow for the full year was down 19% to €4.11 billion.
While higher payouts for restructuring of €2.5 billion and share-based compensation of €1.3 billion weighed on free cash flow,
the performance was supported by SAP’s increased profitability and improvements in working capital. At year end, net liquidity
was €1.70 billion.
Non-Financial Performance 2024
Customer Net Promoter Score (NPS) increased 3 points year over year to
12 in 2024, at the upper end of the outlook range.
After dropping to 72% in the first half of 2024, the employee engagement
index recovered to 76% in the second half of the year. As a result, the employee engagement index for the full year 2024 decreased 6 percentage
points year over year to 74%, at the upper end of the revised outlook range.
The proportion of women in executive roles increased 0.3 percentage points
to 22.5%, in line with the outlook.
Total carbon emissions were flat at 6.9 Mt in 2024, while we initially
guided for a steady decrease.
| Quarterly
Statement Q4 2024 |
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 December 31, 2024, SAP had repurchased 18,429,480 shares at
an average price of €162.46 resulting in a purchased volume of approximately €3.0 billion under the program.
2024 Transformation Program: Focus on scalability of operations
and key strategic growth areas
In January 2024, SAP announced a company-wide restructuring program which
is anticipated to conclude in early 2025. Overall expenses associated with the program are estimated to be approximately €3.2 billion.
Restructuring payouts amounted to €1.7 billion in the fourth quarter and €2.5 billion for the full-year 2024. In 2025, approximately
€0.7bn are expected to be paid out.
Business Highlights
In the fourth quarter, customers around the
globe continued to choose “RISE with SAP” to drive their end-to-end business transformations. These customers included: 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.
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 in the fourth quarter.
ACTUM Digital, CiboVita, Databricks, Inetum,
Medical University of Vienna, msg systems, North Yorkshire Council, Outreach, and Warrington Borough Council chose “GROW with SAP”,
an offering helping customers adopt cloud ERP with speed, predictability, and continuous innovation.
Key customer wins across SAP’s solution
portfolio included: ABB, AOK Federal Association, B. Braun Group, Bayer, Digital China, KNAPP, Mengniu, Migros, Mondi, PwC Germany, SA
Power Networks, Salling Group, SICK, and Unity Programme.
Ayala Land, Carlisle Companies, CP Foods,
IBM, and Tchibo went live on SAP solutions.
In the fourth quarter, SAP’s cloud revenue
performance was particularly strong in APJ and EMEA and robust in the Americas region. China, France, India, Italy, South Korea and the
Netherlands had outstanding performances, while Canada, Germany, Japan and the U.S. were particularly strong.
For the full year, China, Germany, India, Japan, and Spain all had outstanding performances in cloud revenue while Brazil, Canada and
Saudia Arabia were particularly strong.
On October 8, SAP announced powerful new capabilities
that complement and extend Joule, including collaborative AI agents imbued with custom skills to complete complex cross-disciplinary tasks.
On December 3, SAP and AWS announced GROW
with SAP on AWS, which will allow customers of all sizes to rapidly deploy SAP’s enterprise resource planning (ERP) solution while
leveraging the reliability, security and scalability of the world’s most broadly adopted cloud.
On December 16, SAP announced the general
availability of the SAP Green Ledger solution, the most comprehensive carbon accounting system globally that integrates directly with
customers’ financial data.
| Quarterly
Statement Q4 2024 |
Outlook
2025
The outlook 2025 replaces SAP’s former Ambition 2025.
Financial Outlook 2025
For 2025, SAP now expects:
| · | €21.6 – 21.9 billion cloud revenue at constant currencies (2024: €17.14 billion), up 26% to 28% at constant currencies. |
| · | €33.1 – 33.6 billion cloud and software revenue at constant currencies (2024: €29.83 billion), up 11% to 13% at constant
currencies. |
| · | €10.3 – 10.6 billion non-IFRS operating profit at constant currencies (2024: €8.15 billion), up 26% to 30% at constant
currencies. |
| · | Approximately €8.0 billion free cash flow at actual currencies (2024: €4.22 billion), based on
updated free cash flow definition (see section (N) 2025 Reporting Changes). |
| · | An
effective tax rate (non-IFRS) of approximately 32% (2024: 32.3%)2. |
The company also expects current cloud backlog growth to slightly decelerate
in 2025.
While SAP’s 2025 financial outlook for the income statement parameters
is at constant currencies (including an average exchange rate of 1.08 USD per EUR), 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 December 31, 2024 Rates Apply for 2025
| In percentage points |
Q1 2025 |
FY
2025 |
| Cloud revenue growth |
+2.5pp |
+2.5pp |
| Cloud and software revenue growth |
+2.0pp |
+2.0pp |
| Operating profit growth (non-IFRS) |
+5.0pp |
+4.0pp |
This includes an exchange rate of 1.04 USD per EUR.
Non-Financial
Outlook 2025
For 2025, SAP now expects:
| · | A Customer Net Promoter Score of 12 to 16. |
| · | The Employee Engagement Index to be in a range of 74% to 78%. |
| · | To steadily increase the share of women in executive roles. |
| · | To steadily decrease carbon emissions across the relevant value chain. |
2
The effective tax rate (non-IFRS) is a non-IFRS financial measure and is presented for supplemental informational purposes only.
We do not provide an outlook for the effective tax rate (IFRS) due to the uncertainty and potential variability of gains and losses associated
with equity securities, which are reconciling items between the two effective tax rates (non-IFRS and IFRS). These items cannot be provided
without unreasonable efforts but could have a significant impact on our future effective tax rate (IFRS).
| Quarterly
Statement Q4 2024 |
Additional Information
This press release and all information therein
is preliminary and unaudited. Due to rounding, numbers may not add up precisely. The full Q4 and FY 2024 Quarterly Statement can be downloaded
from: https://www.sap.com/investors/sap-2024-q4-statement.
SAP Annual General Meeting of Shareholders
The
Annual General Meeting of Shareholders will take place on May 13, 2025, as a virtual event. The whole event will be webcast on the Company’s
website and online voting options will be available for shareholders. Further details will be published at https://www.sap.com/agm
in early April.
SAP Performance Measures
For more information about our key growth metrics and performance measures,
their calculation, their usefulness, and their limitations, please refer to the following document on our Investor Relations website:
https://www.sap.com/investors/performance-measures
Webcast
SAP senior management will host a financial
analyst conference call on Tuesday, January 28th at 07:00 AM (CET) / 06:00 AM (GMT) / 1:00 AM (EST) / Monday, January 27th 10:00 PM (PST),
followed by a press conference at 10:00 AM (CET) / 9:00 AM (GMT) / 4:00 AM (EST) / 1:00 AM (PST). Both conferences will be webcast on
the Company’s website at https://www.sap.com/investor and
will be available for replay. Supplementary financial information pertaining to the fourth quarter results can be found at https://www.sap.com/investor.
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. For more information,
visit www.sap.com.
For more information, financial community only:
| Alexandra Steiger |
+49 (6227) 7-767336 |
investor@sap.com, CET |
Follow SAP Investor Relations on LinkedIn
at SAP Investor Relations.
For more information, press only:
| Joellen Perry |
+1 (650) 445-6780 |
joellen.perry@sap.com, PT |
| Daniel Reinhardt |
+49 (6227) 7-40201 |
daniel.reinhardt@sap.com, CET |
For customers interested in learning more about SAP products:
| Global Customer Center: |
+49 180 534-34-24 |
| United States Only: |
+1 (800) 872-1SAP (+1-800-872-1727) |
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On this platform, you can find high resolution material for your media channels.
This
document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements
are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results
and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the
Securities and Exchange Commission, including but not limited to the risk factors section of SAP’s 2023 Annual Report on Form 20-F.
©
2025 SAP SE. All rights reserved.
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| Quarterly
Statement Q4 2024 |
Contents
| Financial and Non-Financial Key Facts
(IFRS and Non-IFRS) |
9 |
| |
|
|
| Primary Financial Statements of SAP Group
(IFRS) |
11 |
| |
|
| |
(A) |
Consolidated Income Statements |
11 |
| |
|
|
|
| |
(B) |
Consolidated Statements of Financial Position |
13 |
| |
|
|
|
| |
(C) |
Consolidated Statements of Cash Flows |
14 |
| |
|
|
|
| Non-IFRS Numbers |
15 |
| |
|
| |
(D) |
Basis of Non-IFRS Presentation |
15 |
| |
|
|
|
| |
(E) |
Reconciliation from Non-IFRS Numbers to IFRS Numbers |
15 |
| |
|
|
|
| |
(F) |
Non-IFRS Adjustments – Actuals and Estimates |
19 |
| |
|
|
|
| |
(G) |
Non-IFRS Operating Expense Adjustments by Functional
Areas |
20 |
| |
|
|
|
| Disaggregations |
21 |
| |
|
| |
(H) |
Segment Reporting |
21 |
| |
|
|
|
| |
(I) |
Revenue by Region (IFRS and Non-IFRS) |
21 |
| |
|
|
|
| |
(J) |
Employees by Region and Functional Areas |
22 |
| |
|
|
|
| Other Disclosures |
23 |
| |
|
| |
(K) |
Share-Based Payment |
23 |
| |
|
|
|
| |
(L) |
Restructuring |
23 |
| |
|
|
|
| |
(M) |
Business combinations |
24 |
| |
|
|
|
| |
(N) |
2025 Reporting changes |
24 |
| Quarterly
Statement Q4 2024 |
Financial and Non-Financial Key Facts
(IFRS and Non-IFRS)
| €
millions, unless otherwise stated |
Q1
2023 |
Q2
2023 |
Q3
2023 |
Q4
2023 |
TY
2023 |
Q1
2024 |
Q2
2024 |
Q3
2024 |
Q4
2024 |
TY
2024 |
| Revenues |
|
|
|
|
|
|
|
|
|
|
| Cloud |
3,178 |
3,316 |
3,472 |
3,699 |
13,664 |
3,928 |
4,153 |
4,351 |
4,708 |
17,141 |
| % change – yoy |
24 |
19 |
16 |
20 |
20 |
24 |
25 |
25 |
27 |
25 |
| % change constant currency – yoy |
22 |
22 |
23 |
25 |
23 |
25 |
25 |
27 |
27 |
26 |
| Cloud ERP Suite |
2,422 |
2,562 |
2,711 |
2,931 |
10,626 |
3,167 |
3,414 |
3,636 |
3,949 |
14,166 |
| % change – yoy |
35 |
30 |
26 |
28 |
29 |
31 |
33 |
34 |
35 |
33 |
| % change constant currency – yoy |
33 |
33 |
34 |
33 |
33 |
32 |
33 |
36 |
35 |
34 |
| Software licenses |
276 |
316 |
335 |
838 |
1,764 |
203 |
229 |
285 |
683 |
1,399 |
| % change – yoy |
–13 |
–26 |
–17 |
–8 |
–14 |
–26 |
–28 |
–15 |
–18 |
–21 |
| % change constant currency – yoy |
–13 |
–24 |
–14 |
–6 |
–12 |
–25 |
–27 |
–14 |
–19 |
–21 |
| Software support |
2,905 |
2,873 |
2,872 |
2,846 |
11,496 |
2,829 |
2,792 |
2,793 |
2,876 |
11,290 |
| % change – yoy |
–1 |
–3 |
–5 |
–5 |
–3 |
–3 |
–3 |
–3 |
1 |
–2 |
| % change constant currency – yoy |
–1 |
–1 |
–1 |
–1 |
–1 |
–1 |
–3 |
–2 |
1 |
–1 |
| Software licenses and support |
3,180 |
3,189 |
3,208 |
3,683 |
13,261 |
3,031 |
3,021 |
3,078 |
3,559 |
12,689 |
| % change – yoy |
–2 |
–6 |
–6 |
–6 |
–5 |
–5 |
–5 |
–4 |
–3 |
–4 |
| % change constant currency – yoy |
–2 |
–4 |
–2 |
–2 |
–3 |
–4 |
–5 |
–3 |
–4 |
–4 |
| Cloud and software |
6,358 |
6,505 |
6,679 |
7,382 |
26,924 |
6,960 |
7,175 |
7,429 |
8,267 |
29,830 |
| % change – yoy |
10 |
5 |
4 |
6 |
6 |
9 |
10 |
11 |
12 |
11 |
| % change constant currency – yoy |
8 |
8 |
9 |
10 |
9 |
11 |
10 |
12 |
11 |
11 |
| Total revenue |
7,441 |
7,554 |
7,744 |
8,468 |
31,207 |
8,041 |
8,288 |
8,470 |
9,377 |
34,176 |
| % change – yoy |
10 |
5 |
4 |
5 |
6 |
8 |
10 |
9 |
11 |
10 |
| % change constant currency – yoy |
9 |
8 |
9 |
9 |
9 |
9 |
10 |
10 |
10 |
10 |
| Share of more predictable revenue (in %) |
82 |
82 |
82 |
77 |
81 |
84 |
84 |
84 |
81 |
83 |
| Profits |
|
|
|
|
|
|
|
|
|
|
| Operating profit (loss) (IFRS) |
803 |
1,371 |
1,723 |
1,902 |
5,799 |
–787 |
1,222 |
2,214 |
2,016 |
4,665 |
| Operating profit (loss) (non-IFRS) |
1,321 |
1,457 |
1,767 |
1,969 |
6,514 |
1,533 |
1,940 |
2,244 |
2,436 |
8,153 |
| % change - yoy |
–15 |
14 |
7 |
1 |
1 |
16 |
33 |
27 |
24 |
25 |
| % change constant currency - yoy |
–15 |
19 |
13 |
5 |
5 |
19 |
35 |
28 |
24 |
26 |
| Profit (loss) after tax (IFRS) |
403 |
724 |
1,272 |
1,201 |
3,600 |
–824 |
918 |
1,441 |
1,616 |
3,150 |
| Profit (loss) after tax (non-IFRS) |
868 |
799 |
1,352 |
1,302 |
4,321 |
944 |
1,278 |
1,437 |
1,619 |
5,279 |
| % change - yoy |
–20 |
–9 |
13 |
–10 |
–6 |
9 |
60 |
6 |
24 |
22 |
| Margins |
|
|
|
|
|
|
|
|
|
|
| Cloud gross margin (IFRS, in %) |
70.5 |
71.1 |
72.7 |
71.9 |
71.6 |
72.2 |
73.0 |
73.2 |
72.8 |
72.8 |
| Cloud gross margin (non-IFRS, in %) |
70.8 |
71.4 |
73.0 |
72.2 |
71.9 |
72.5 |
73.3 |
73.7 |
73.5 |
73.3 |
| Software license and support gross margin (IFRS, in %) |
88.6 |
89.8 |
90.0 |
89.8 |
89.6 |
89.2 |
89.7 |
90.1 |
91.0 |
90.1 |
| Software license and support gross margin (non-IFRS, in %) |
88.9 |
90.2 |
90.1 |
89.8 |
89.8 |
89.2 |
89.7 |
90.1 |
91.0 |
90.1 |
| Cloud and software gross margin (IFRS, in %) |
79.5 |
80.3 |
81.0 |
80.8 |
80.4 |
79.6 |
80.0 |
80.2 |
80.7 |
80.1 |
| Cloud and software gross margin (non-IFRS, in %) |
79.9 |
80.6 |
81.2 |
81.0 |
80.7 |
79.8 |
80.2 |
80.5 |
81.0 |
80.4 |
| Gross margin (IFRS, in %) |
71.0 |
71.6 |
72.8 |
73.3 |
72.2 |
71.7 |
72.6 |
73.3 |
74.0 |
73.0 |
| Gross margin (non-IFRS, in %) |
71.3 |
71.9 |
73.0 |
73.4 |
72.4 |
71.8 |
72.7 |
73.6 |
74.3 |
73.2 |
| Operating margin (IFRS, in %) |
10.8 |
18.2 |
22.2 |
22.5 |
18.6 |
–9.8 |
14.7 |
26.1 |
21.5 |
13.6 |
| Quarterly
Statement Q4 2024 |
| €
millions, unless otherwise stated |
Q1
2023 |
Q2
2023 |
Q3
2023 |
Q4
2023 |
TY
2023 |
Q1
2024 |
Q2
2024 |
Q3
2024 |
Q4
2024 |
TY
2024 |
| Operating margin (non-IFRS, in %) |
17.8 |
19.3 |
22.8 |
23.3 |
20.9 |
19.1 |
23.4 |
26.5 |
26.0 |
23.9 |
| Key
Profit Ratios |
|
|
|
|
|
|
|
|
|
|
| Effective tax rate (IFRS, in %) |
40.5 |
33.8 |
27.8 |
33.6 |
32.6 |
16.0 |
33.8 |
33.0 |
26.8 |
33.9 |
| Effective tax rate (non-IFRS, in %) |
29.1 |
33.0 |
27.1 |
32.5 |
30.3 |
32.4 |
33.6 |
33.4 |
30.0 |
32.3 |
| |
|
|
|
|
|
|
|
|
|
|
| Earnings per share, basic (IFRS, in €) from continuing operations |
0.35 |
0.62 |
1.09 |
1.05 |
3.11 |
–0.71 |
0.76 |
1.25 |
1.37 |
2.68 |
| Earnings per share, basic (non-IFRS, in €) from continuing operations |
0.75 |
0.69 |
1.16 |
1.12 |
3.72 |
0.81 |
1.10 |
1.23 |
1.40 |
4.53 |
| Earnings per share, basic (IFRS, in €)1 |
0.41 |
2.70 |
1.09 |
1.05 |
5.26 |
–0.71 |
0.76 |
1.25 |
1.37 |
2.68 |
| Earnings per share, basic (non-IFRS, in €)1 |
0.83 |
2.40 |
1.16 |
1.12 |
5.51 |
0.81 |
1.10 |
1.23 |
1.40 |
4.53 |
| Order
Entry and current cloud backlog |
|
|
|
|
|
|
|
|
|
|
| Current cloud backlog |
11,148 |
11,537 |
12,269 |
13,745 |
13,745 |
14,179 |
14,808 |
15,377 |
18,078 |
18,078 |
| % change – yoy |
25 |
21 |
19 |
25 |
25 |
27 |
28 |
25 |
32 |
32 |
| % change constant currency – yoy |
25 |
25 |
25 |
27 |
27 |
28 |
28 |
29 |
29 |
29 |
| Share of cloud orders greater than €5 million based on total cloud order entry volume (in %) |
45 |
46 |
49 |
62 |
55 |
52 |
52 |
64 |
68 |
63 |
| Share of cloud orders smaller than €1 million based on total cloud order entry volume (in %) |
26 |
25 |
21 |
14 |
19 |
21 |
20 |
16 |
11 |
15 |
| Liquidity
and Cash Flow |
|
|
|
|
|
|
|
|
|
|
| Net cash flows from operating activities |
2,311 |
848 |
1,124 |
1,926 |
6,210 |
2,757 |
1,540 |
1,475 |
–551 |
5,220 |
| Purchase of intangible assets and property, plant, and equipment |
–257 |
–156 |
–182 |
–190 |
–785 |
–187 |
–178 |
–163 |
–270 |
–797 |
| Payments of lease liabilities |
–99 |
–89 |
–78 |
–66 |
–332 |
–78 |
–70 |
–65 |
–97 |
–310 |
| Free cash flow |
1,955 |
604 |
865 |
1,670 |
5,093 |
2,492 |
1,291 |
1,248 |
–918 |
4,113 |
| % of total revenue |
26 |
8 |
11 |
20 |
16 |
31 |
16 |
15 |
NA |
12 |
| % of profit after tax (IFRS) |
485 |
83 |
68 |
139 |
141 |
NA |
141 |
87 |
NA |
131 |
| Cash and cash equivalents |
8,766 |
14,142 |
9,378 |
8,124 |
8,124 |
9,295 |
7,870 |
10,005 |
9,609 |
9,609 |
| Group liquidity |
9,700 |
14,326 |
12,122 |
11,275 |
11,275 |
13,411 |
11,449 |
11,856 |
11,080 |
11,080 |
| Financial debt (–) |
–10,751 |
–10,146 |
–8,445 |
–7,755 |
–7,755 |
–7,770 |
–7,776 |
–8,996 |
–9,385 |
–9,385 |
| Net liquidity (+) / Net debt(–) |
–1,050 |
4,180 |
3,677 |
3,521 |
3,521 |
5,641 |
3,674 |
2,860 |
1,695 |
1,695 |
| Non-Financials
|
|
|
|
|
|
|
|
|
|
|
| Number of employees (quarter end)2 |
105,132 |
105,328 |
106,495 |
107,602 |
107,602 |
108,133 |
105,315 |
107,583 |
109,121 |
109,121 |
| Employee retention (in %, rolling 12 months) |
93.8 |
95.1 |
96.0 |
96.4 |
96.4 |
96.6 |
96.6 |
96.7 |
96.7 |
96.7 |
| Women in management (in %, quarter end) |
29.4 |
29.5 |
29.5 |
29.7 |
29.7 |
29.8 |
29.9 |
30.0 |
30.2 |
30.2 |
| Women in executive roles (in %, quarter end) |
21.8 |
21.9 |
22.1 |
22.2 |
22.2 |
21.7 |
21.9 |
22.0 |
22.5 |
22.5 |
|
Gross greenhouse gas emissions (scope 1, 2, 3 / market-based)3
(in million tons CO2 equivalents) |
|
|
|
|
6.9 |
1.8 |
1.8 |
1.8 |
1.8 |
6.9 |
1 From
continuing and discontinued operations.
2 In
full-time equivalents.
3 Our
gross greenhouse gas emissions (GHG) include the total lifecycle emissions resulting from the use of our on-premise software. The calculation
of use of sold products emissions is based on the number of active maintenance contracts at quarter end. Therefore, the emissions for
individual quarters will not add up to the total sum of GHG emissions at year end.
 | Quarterly
Statement Q4 2024 |
Primary Financial Statements of SAP Group (IFRS)
| (A) | Consolidated
Income Statements |
| (A.1) | Consolidated
Income Statements – Quarter |
| € millions, unless otherwise stated |
|
Q4
2024 |
Q4 2023 |
∆ in % |
| Cloud |
|
4,708 |
3,699 |
27 |
| Software licenses |
|
683 |
838 |
–18 |
| Software support |
|
2,876 |
2,846 |
1 |
| Software licenses and support |
|
3,559 |
3,683 |
–3 |
| Cloud
and software |
|
8,267 |
7,382 |
12 |
| Services |
|
1,110 |
1,086 |
2 |
| Total
revenue |
|
9,377 |
8,468 |
11 |
| |
|
|
|
|
| Cost of cloud |
|
–1,279 |
–1,041 |
23 |
| Cost of software licenses and support |
|
–319 |
–374 |
–15 |
| Cost of cloud and software |
|
–1,598 |
–1,415 |
13 |
| Cost of services |
|
–837 |
–850 |
–2 |
| Total
cost of revenue |
|
–2,435 |
–2,265 |
8 |
| Gross
profit |
|
6,943 |
6,204 |
12 |
| Research and development |
|
–1,675 |
–1,671 |
0 |
| Sales and marketing |
|
–2,496 |
–2,266 |
10 |
| General and administration |
|
–378 |
–367 |
3 |
| Restructuring |
|
–323 |
7 |
NA |
| Other operating income/expense, net |
|
–54 |
–4 |
>100 |
| Total
operating expenses |
|
–7,361 |
–6,566 |
12 |
| Operating
profit (loss) |
|
2,016 |
1,902 |
6 |
| |
|
|
|
|
| Other
non-operating income/expense, net |
|
–83 |
0 |
NA |
| Finance income |
|
578 |
284 |
>100 |
| Finance costs |
|
–305 |
–377 |
–19 |
| Financial
income, net |
|
273 |
–93 |
NA |
| Profit
(loss) before tax from continuing operations |
|
2,207 |
1,810 |
22 |
| |
|
|
|
|
| Income tax expense |
|
–591 |
–608 |
–3 |
| Profit
(loss) after tax from continuing operations |
|
1,616 |
1,201 |
35 |
| Attributable to owners of parent |
|
1,601 |
1,221 |
31 |
| Attributable to non-controlling interests |
|
15 |
–20 |
NA |
| Profit
(loss) after tax from discontinued operations |
|
0 |
0 |
NA |
| Profit
(loss) after tax1 |
|
1,616 |
1,201 |
35 |
| Attributable to owners of parent1 |
|
1,601 |
1,221 |
31 |
| Attributable to non-controlling interests1 |
|
15 |
–20 |
NA |
| |
|
|
|
|
| Earnings
per share, basic (in €)2 from continuing operations |
|
1.37 |
1.05 |
31 |
| Earnings
per share, basic (in €)1, 2 |
|
1.37 |
1.05 |
31 |
| Earnings
per share, diluted (in €)2 from continuing operations |
|
1.36 |
1.04 |
31 |
| Earnings
per share, diluted (in €)1, 2 |
|
1.36 |
1.04 |
31 |
1 From
continuing and discontinued operations
2 For
the three months ended December 31, 2024 and 2023, the weighted average number of shares was 1,165 million (diluted 1,176 million) and
1,166 million (diluted: 1,178 million), respectively (treasury stock excluded).
| Quarterly
Statement Q4 2024 |
| (A.2) | Consolidated Income Statements – Year-to-Date |
| € millions, unless otherwise stated |
|
Q1–Q4
2024 |
Q1–Q4 2023 |
∆ in % |
| Cloud |
|
17,141 |
13,664 |
25 |
| Software licenses |
|
1,399 |
1,764 |
–21 |
| Software support |
|
11,290 |
11,496 |
–2 |
| Software licenses and support |
|
12,689 |
13,261 |
–4 |
| Cloud
and software |
|
29,830 |
26,924 |
11 |
| Services |
|
4,346 |
4,283 |
1 |
| Total
revenue |
|
34,176 |
31,207 |
10 |
| |
|
|
|
|
| Cost of cloud |
|
–4,660 |
–3,884 |
20 |
| Cost of software licenses and support |
|
–1,262 |
–1,383 |
–9 |
| Cost of cloud and software |
|
–5,922 |
–5,267 |
12 |
| Cost of services |
|
–3,321 |
–3,407 |
–3 |
| Total
cost of revenue |
|
–9,243 |
–8,674 |
7 |
| Gross
profit |
|
24,932 |
22,534 |
11 |
| Research and development |
|
–6,514 |
–6,324 |
3 |
| Sales and marketing |
|
–9,090 |
–8,828 |
3 |
| General and administration |
|
–1,435 |
–1,364 |
5 |
| Restructuring |
|
–3,144 |
–215 |
>100 |
| Other operating income/expense, net |
|
–85 |
–4 |
>100 |
| Total
operating expenses |
|
–29,511 |
–25,408 |
16 |
| Operating
profit (loss) |
|
4,665 |
5,799 |
–20 |
| |
|
|
|
|
| Other
non-operating income/expense, net |
|
–298 |
–3 |
>100 |
| Finance income |
|
1,429 |
857 |
67 |
| Finance costs |
|
–1,031 |
–1,313 |
–21 |
| Financial
income, net |
|
398 |
–456 |
NA |
| Profit
(loss) before tax from continuing operations |
|
4,764 |
5,341 |
–11 |
| |
|
|
|
|
| Income tax expense |
|
–1,614 |
–1,741 |
–7 |
| Profit
(loss) after tax from continuing operations |
|
3,150 |
3,600 |
–13 |
| Attributable to owners of parent |
|
3,124 |
3,634 |
–14 |
| Attributable to non-controlling interests |
|
26 |
–33 |
NA |
| Profit
(loss) after tax from discontinued operations |
|
0 |
2,363 |
NA |
| Profit
(loss) after tax1 |
|
3,150 |
5,964 |
–47 |
| Attributable to owners of parent1 |
|
3,124 |
6,139 |
–49 |
| Attributable to non-controlling interests1 |
|
26 |
–175 |
NA |
| |
|
|
|
|
| Earnings
per share, basic (in €)2 from continuing operations |
|
2.68 |
3.11 |
–14 |
| Earnings
per share, basic (in €)1, 2 |
|
2.68 |
5.26 |
–49 |
| Earnings
per share, diluted (in €)2 from continuing operations |
|
2.65 |
3.08 |
–14 |
| Earnings
per share, diluted (in €)1, 2 |
|
2.65 |
5.20 |
–49 |
1 From
continuing and discontinued operations
2 For the full year 2024 and 2023, the weighted average number of shares was 1,166 million (diluted: 1,180 million)
and 1,167 million (diluted: 1,180 million), respectively (treasury stock excluded).
| Quarterly
Statement Q4 2024 |
| (B) | Consolidated
Statements of Financial Position |
| as at 12/31/2024 and 12/31/2023 |
| € millions |
2024 |
2023 |
| Cash and cash equivalents |
9,609 |
8,124 |
| Other financial assets |
1,629 |
3,344 |
| Trade and other receivables |
6,774 |
6,322 |
| Other non-financial assets |
2,682 |
2,374 |
| Tax assets |
707 |
407 |
| Total
current assets |
21,401 |
20,571 |
| Goodwill |
31,147 |
29,081 |
| Intangible assets |
2,706 |
2,505 |
| Property, plant, and equipment |
4,493 |
4,276 |
| Other financial assets |
7,141 |
5,543 |
| Trade and other receivables |
209 |
203 |
| Other non-financial assets |
3,990 |
3,573 |
| Tax assets |
359 |
382 |
| Deferred tax assets |
2,676 |
2,197 |
| Total
non-current assets |
52,721 |
47,760 |
| Total
assets |
74,122 |
68,331 |
| |
| € millions |
2024 |
2023 |
| Trade and other payables |
1,990 |
1,783 |
| Tax liabilities |
585 |
266 |
| Financial liabilities |
4,277 |
1,735 |
| Other non-financial liabilities |
5,533 |
5,647 |
| Provisions |
716 |
235 |
| Contract liabilities |
5,978 |
4,975 |
| Total
current liabilities |
19,079 |
14,641 |
| Trade and other payables |
10 |
39 |
| Tax liabilities |
509 |
874 |
| Financial liabilities |
7,169 |
7,941 |
| Other non-financial liabilities |
749 |
698 |
| Provisions |
494 |
432 |
| Deferred tax liabilities |
215 |
267 |
| Contract liabilities |
88 |
33 |
| Total
non-current liabilities |
9,235 |
10,284 |
| Total
liabilities |
28,314 |
24,925 |
| Issued capital |
1,229 |
1,229 |
| Share premium |
2,564 |
1,845 |
| Retained earnings |
42,907 |
42,457 |
| Other components of equity |
4,694 |
2,367 |
| Treasury shares |
–5,954 |
–4,741 |
| Equity
attributable to owners of parent |
45,440 |
43,157 |
| |
|
|
| Non-controlling
interests |
368 |
249 |
| Total
equity |
45,808 |
43,406 |
| Total
equity and liabilities |
74,122 |
68,331 |
| Quarterly
Statement Q4 2024 |
| (C) | Consolidated
Statements of Cash Flows |
| € millions |
Q1–Q4
2024 |
Q1–Q4 2023 |
| Profit
(loss) after tax |
3,150 |
5,964 |
| Adjustments to reconcile profit (loss) after tax to net cash flows from operating activities: |
|
|
| (Profit) loss after tax from discontinued operations |
0 |
–2,363 |
| Depreciation and amortization |
1,280 |
1,373 |
| Share-based payment expense |
2,385 |
2,220 |
| Income tax expense |
1,614 |
1,741 |
| Financial income, net |
–398 |
456 |
| Increase/decrease in allowances on trade receivables |
30 |
–10 |
| Other adjustments for non-cash items |
110 |
23 |
| Increase/decrease in trade and other receivables |
–247 |
–393 |
| Increase/decrease in other assets |
–632 |
–700 |
| Increase/decrease in trade payables, provisions, and other liabilities |
603 |
633 |
| Increase/decrease in contract liabilities |
869 |
443 |
| Share-based payments |
–1,282 |
–1,091 |
| Interest paid |
–550 |
–393 |
| Interest received |
563 |
469 |
| Income taxes paid, net of refunds |
–2,277 |
–2,161 |
| Net
cash flows from operating activities – continuing operations |
5,220 |
6,210 |
| Net cash flows from operating activities – discontinued operations |
0 |
122 |
| Net
cash flows from operating activities |
5,220 |
6,332 |
| Business combinations, net of cash and cash equivalents acquired |
–1,114 |
–1,168 |
| Cash flows from derivative financial instruments related to the sale of subsidiaries or businesses |
0 |
–91 |
| Purchase of intangible assets and property, plant, and equipment |
–797 |
–785 |
| Proceeds from sales of intangible assets and property, plant, and equipment |
122 |
99 |
| Purchase of equity or debt instruments of other entities |
–6,401 |
–3,566 |
| Proceeds from sales of equity or debt instruments of other entities |
7,533 |
907 |
| Net
cash flows from investing activities – continuing operations |
–656 |
–4,603 |
| Net cash flows from investing activities – discontinued operations |
0 |
5,510 |
| Net
cash flows from investing activities |
–656 |
906 |
| Dividends paid |
–2,565 |
–2,395 |
| Dividends paid on non-controlling interests |
–1 |
–13 |
| Purchase of treasury shares |
–2,106 |
–949 |
| Proceeds from borrowings |
2,767 |
13 |
| Repayments of borrowings |
–1,185 |
–4,081 |
| Payments of lease liabilities |
–310 |
–332 |
| Transactions with non-controlling interests |
–11 |
0 |
| Net cash flows from financing activities – continuing operations |
–3,412 |
–7,758 |
| Net cash flows from financing activities – discontinued operations |
0 |
24 |
| Net
cash flows from financing activities |
–3,412 |
–7,734 |
| Effect
of foreign currency rates on cash and cash equivalents |
333 |
–388 |
| Net increase/decrease in cash and cash equivalents |
1,485 |
–883 |
| Cash
and cash equivalents at the beginning of the period |
8,124 |
9,008 |
| Cash
and cash equivalents at the end of the period |
9,609 |
8,124 |
| Quarterly
Statement Q4 2024 |
Non-IFRS Numbers
| (D) | Basis of Non-IFRS Presentation |
SAP disclose certain financial measures such as expense (non-IFRS) and
profit measures (non-IFRS) that are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures.
For
a more detailed description of all of SAP’s non-IFRS measures and their limitations as well as SAP’s constant currency and
free cash flow figures, see Explanation
of Non-IFRS Measures.
| (E) | Reconciliation from Non-IFRS Numbers to IFRS Numbers |
| (E.1) | Reconciliation of Non-IFRS Revenue – Quarter |
| € millions, unless otherwise stated |
Q4 2024 |
Q4 2023 |
∆ in % |
| IFRS |
Currency
Impact |
Non-IFRS
Constant Currency |
IFRS |
IFRS |
Non-IFRS Constant Currency |
| Revenue Numbers |
|
|
|
|
|
|
| Cloud |
4,708 |
–20 |
4,688 |
3,699 |
27 |
27 |
| Software licenses |
683 |
–6 |
677 |
838 |
–18 |
–19 |
| Software support |
2,876 |
–11 |
2,866 |
2,846 |
1 |
1 |
| Software licenses and support |
3,559 |
–17 |
3,542 |
3,683 |
–3 |
–4 |
| Cloud and software |
8,267 |
–37 |
8,230 |
7,382 |
12 |
11 |
| Services |
1,110 |
–6 |
1,104 |
1,086 |
2 |
2 |
| Total revenue |
9,377 |
–43 |
9,334 |
8,468 |
11 |
10 |
| Quarterly
Statement Q4 2024 |
| (E.2) | Reconciliation
of Non-IFRS Operating Expenses – Quarter |
| € millions, unless otherwise stated |
Q4
2024 |
Q4 2023 |
∆ in % |
| IFRS |
Adj. |
Non-
IFRS |
Currency
Impact |
Non-IFRS
Constant
Currency |
IFRS |
Adj. |
Non-
IFRS |
IFRS |
Non-IFRS |
Non-IFRS
Constant
Currency |
| Operating
Expense Numbers |
|
|
|
|
|
|
|
|
|
|
|
| Cost of cloud |
–1,279 |
29 |
–1,250 |
|
|
–1,041 |
10 |
–1,030 |
23 |
21 |
|
| Cost of software licenses and support |
–319 |
0 |
–319 |
|
|
–374 |
0 |
–374 |
–15 |
–15 |
|
| Cost of cloud and software |
–1,598 |
29 |
–1,569 |
|
|
–1,415 |
11 |
–1,404 |
13 |
12 |
|
| Cost of services |
–837 |
0 |
–837 |
|
|
–850 |
1 |
–848 |
–2 |
–1 |
|
| Total
cost of revenue |
–2,435 |
29 |
–2,406 |
|
|
–2,265 |
12 |
–2,252 |
8 |
7 |
|
| Gross
profit |
6,943 |
29 |
6,972 |
–35 |
6,937 |
6,204 |
12 |
6,216 |
12 |
12 |
12 |
| Research and development |
–1,675 |
2 |
–1,673 |
|
|
–1,671 |
2 |
–1,669 |
0 |
0 |
|
| Sales and marketing |
–2,496 |
53 |
–2,443 |
|
|
–2,266 |
49 |
–2,216 |
10 |
10 |
|
| General and administration |
–378 |
12 |
–366 |
|
|
–367 |
9 |
–357 |
3 |
2 |
|
| Restructuring |
–323 |
323 |
0 |
|
|
7 |
–7 |
0 |
NA |
NA |
|
| Other operating income/expense, net |
–54 |
0 |
–54 |
|
|
–4 |
0 |
–4 |
>100 |
>100 |
|
| Total
operating expenses |
–7,361 |
420 |
–6,941 |
45 |
–6,896 |
–6,566 |
66 |
–6,499 |
12 |
7 |
6 |
| (E.3) | Reconciliation
of Non-IFRS Profit Figures, Income Tax, and Key Ratios – Quarter |
| € millions, unless otherwise stated |
Q4
2024 |
Q4 2023 |
∆ in % |
| IFRS |
Adj. |
Non-
IFRS |
Currency
Impact |
Non-IFRS
Constant
Currency |
IFRS |
Adj. |
Non-
IFRS |
IFRS |
Non-IFRS |
Non-IFRS
Constant
Currency |
| Profit
Numbers |
|
|
|
|
|
|
|
|
|
|
|
| Operating
profit (loss) |
2,016 |
420 |
2,436 |
2 |
2,439 |
1,902 |
66 |
1,969 |
6 |
24 |
24 |
| Other
non-operating income/expense, net |
–83 |
0 |
–83 |
|
|
0 |
0 |
0 |
NA |
NA |
|
| Finance income |
578 |
–408 |
170 |
|
|
284 |
–142 |
142 |
>100 |
20 |
|
| Finance costs |
–305 |
94 |
–210 |
|
|
–377 |
196 |
–181 |
–19 |
16 |
|
| Financial
income, net |
273 |
–314 |
–40 |
|
|
–93 |
54 |
–39 |
NA |
4 |
|
| Profit
(loss) before tax from continuing operations |
2,207 |
106 |
2,313 |
|
|
1,810 |
121 |
1,930 |
22 |
20 |
|
| Income tax expense |
–591 |
–103 |
–694 |
|
|
–608 |
–20 |
–628 |
–3 |
10 |
|
| Profit
(loss) after tax from continuing operations |
1,616 |
3 |
1,619 |
|
|
1,201 |
101 |
1,302 |
35 |
24 |
|
| Attributable to owners of parent |
1,601 |
28 |
1,629 |
|
|
1,221 |
89 |
1,310 |
31 |
24 |
|
| Attributable to non-controlling interests |
15 |
–24 |
–10 |
|
|
–20 |
12 |
–8 |
NA |
15 |
|
| Profit
(loss) after tax1 |
1,616 |
3 |
1,619 |
|
|
1,201 |
101 |
1,302 |
35 |
24 |
|
| Attributable to owners of parent1 |
1,601 |
28 |
1,629 |
|
|
1,221 |
89 |
1,310 |
31 |
24 |
|
| Attributable to non-controlling interests1 |
15 |
–24 |
–10 |
|
|
–20 |
12 |
–8 |
NA |
15 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Key
Ratios |
|
|
|
|
|
|
|
|
|
|
|
| Operating
margin (in %) |
21.5 |
|
26.0 |
|
26.1 |
22.5 |
|
23.3 |
–1.0pp |
2.7pp |
2.9pp |
| Effective
tax rate (in %)2 |
26.8 |
|
30.0 |
|
|
33.6 |
|
32.5 |
–6.8pp |
–2.5pp |
|
| Earnings
per share, basic (in €) from continuing operations |
1.37 |
|
1.40 |
|
|
1.05 |
|
1.12 |
31 |
24 |
|
| Earnings
per share, basic (in €)1 |
1.37 |
|
1.40 |
|
|
1.05 |
|
1.12 |
31 |
24 |
|
1
From continuing and discontinued operations
2 The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q4 2024 mainly resulted from tax effects
of restructuring expenses and equity securities. The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS)
in Q4 2023 mainly resulted from tax effects of acquisition-related charges.
| Quarterly
Statement Q4 2024 |
| (E.4) | Reconciliation
of Non-IFRS Revenue – Year-to-Date |
| € millions, unless otherwise stated |
Q1–Q4
2024 |
Q1–Q4 2023 |
∆ in % |
| IFRS |
Currency
Impact |
Non-IFRS
Constant
Currency |
IFRS |
IFRS |
Non-IFRS
Constant
Currency |
| Revenue
Numbers |
|
|
|
|
|
|
| Cloud |
17,141 |
72 |
17,212 |
13,664 |
25 |
26 |
| Software licenses |
1,399 |
1 |
1,400 |
1,764 |
–21 |
–21 |
| Software support |
11,290 |
53 |
11,343 |
11,496 |
–2 |
–1 |
| Software licenses and support |
12,689 |
54 |
12,743 |
13,261 |
–4 |
–4 |
| Cloud
and software |
29,830 |
126 |
29,955 |
26,924 |
11 |
11 |
| Services |
4,346 |
9 |
4,355 |
4,283 |
1 |
2 |
| Total
revenue |
34,176 |
135 |
34,310 |
31,207 |
10 |
10 |
| (E.5) | Reconciliation
of Non-IFRS Operating Expenses – Year-to-Date |
| € millions, unless otherwise stated |
Q1–Q4
2024 |
Q1–Q4 2023 |
∆ in % |
| IFRS |
Adj. |
Non-
IFRS |
Currency
Impact |
Non-IFRS
Constant
Currency |
IFRS |
Adj. |
Non-
IFRS |
IFRS |
Non-IFRS |
Non-IFRS
Constant
Currency |
| Operating
Expense Numbers |
|
|
|
|
|
|
|
|
|
|
|
| Cost of cloud |
–4,660 |
78 |
–4,582 |
|
|
–3,884 |
42 |
–3,842 |
20 |
19 |
|
| Cost of software licenses and support |
–1,262 |
0 |
–1,262 |
|
|
–1,383 |
26 |
–1,356 |
–9 |
–7 |
|
| Cost of cloud and software |
–5,922 |
78 |
–5,844 |
|
|
–5,267 |
68 |
–5,199 |
12 |
12 |
|
| Cost of services |
–3,321 |
1 |
–3,321 |
|
|
–3,407 |
2 |
–3,405 |
–3 |
–2 |
|
| Total
cost of revenue |
–9,243 |
79 |
–9,165 |
|
|
–8,674 |
70 |
–8,604 |
7 |
7 |
|
| Gross
profit |
24,932 |
79 |
25,011 |
112 |
25,124 |
22,534 |
70 |
22,603 |
11 |
11 |
11 |
| Research and development |
–6,514 |
5 |
–6,508 |
|
|
–6,324 |
7 |
–6,316 |
3 |
3 |
|
| Sales and marketing |
–9,090 |
234 |
–8,856 |
|
|
–8,828 |
412 |
–8,415 |
3 |
5 |
|
| General and administration |
–1,435 |
27 |
–1,409 |
|
|
–1,364 |
11 |
–1,354 |
5 |
4 |
|
| Restructuring |
–3,144 |
3,144 |
0 |
|
|
–215 |
215 |
0 |
>100 |
NA |
|
| Other operating income/expense, net |
–85 |
0 |
–85 |
|
|
–4 |
0 |
–4 |
>100 |
>100 |
|
| Total
operating expenses |
–29,511 |
3,489 |
–26,022 |
–56 |
–26,079 |
–25,408 |
715 |
–24,693 |
16 |
5 |
6 |
| Quarterly
Statement Q4 2024 |
| (E.6) | Reconciliation
of Non-IFRS Profit Figures, Income Tax, and Key Ratios – Year-to-Date |
| € millions, unless otherwise stated |
Q1–Q4
2024 |
Q1–Q4 2023 |
∆ in % |
| IFRS |
Adj. |
Non-
IFRS |
Currency
Impact |
Non-IFRS
Constant
Currency |
IFRS |
Adj. |
Non-
IFRS |
IFRS |
Non-IFRS |
Non-IFRS
Constant
Currency |
| Profit
Numbers |
|
|
|
|
|
|
|
|
|
|
|
| Operating
profit (loss) |
4,665 |
3,489 |
8,153 |
78 |
8,232 |
5,799 |
715 |
6,514 |
–20 |
25 |
26 |
| Other
non-operating income/expense, net |
–298 |
0 |
–298 |
|
|
–3 |
0 |
–3 |
>100 |
>100 |
|
| Finance income |
1,429 |
–777 |
652 |
|
|
857 |
–380 |
477 |
67 |
37 |
|
| Finance costs |
–1,031 |
316 |
–715 |
|
|
–1,313 |
525 |
–788 |
–21 |
–9 |
|
| Financial
income, net |
398 |
–461 |
–63 |
|
|
–456 |
145 |
–311 |
NA |
–80 |
|
| Profit
(loss) before tax from continuing operations |
4,764 |
3,028 |
7,792 |
|
|
5,341 |
860 |
6,201 |
–11 |
26 |
|
| Income tax expense |
–1,614 |
–899 |
–2,513 |
|
|
–1,741 |
–139 |
–1,880 |
–7 |
34 |
|
| Profit
(loss) after tax from continuing operations |
3,150 |
2,129 |
5,279 |
|
|
3,600 |
721 |
4,321 |
–13 |
22 |
|
| Attributable to owners of parent |
3,124 |
2,162 |
5,286 |
|
|
3,634 |
704 |
4,338 |
–14 |
22 |
|
| Attributable to non-controlling interests |
26 |
–33 |
–7 |
|
|
–33 |
16 |
–17 |
NA |
–61 |
|
| Profit
(loss) after tax1 |
3,150 |
2,129 |
5,279 |
|
|
5,964 |
139 |
6,103 |
–47 |
–13 |
|
| Attributable to owners of parent1 |
3,124 |
2,162 |
5,286 |
|
|
6,139 |
297 |
6,436 |
–49 |
–18 |
|
| Attributable to non-controlling interests1 |
26 |
–33 |
–7 |
|
|
–175 |
–158 |
–333 |
NA |
–98 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Key
Ratios |
|
|
|
|
|
|
|
|
|
|
|
| Operating
margin (in %) |
13.6 |
|
23.9 |
|
24.0 |
18.6 |
|
20.9 |
–4.9pp |
3.0pp |
3.1pp |
| Effective
tax rate (in %)2 |
33.9 |
|
32.3 |
|
|
32.6 |
|
30.3 |
1.3pp |
1.9pp |
|
| Earnings
per share, basic (in €) from continuing operations |
2.68 |
|
4.53 |
|
|
3.11 |
|
3.72 |
–14 |
22 |
|
| Earnings
per share, basic (in €)1 |
2.68 |
|
4.53 |
|
|
5.26 |
|
5.51 |
–49 |
–18 |
|
1 From
continuing and discontinued operations
2 The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in 2024 mainly resulted from tax effects
of restructuring expenses and equity securities. The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS)
in 2023 mainly resulted from tax effects of acquisition-related charges and restructuring expenses.
| Quarterly
Statement Q4 2024 |
| (E.7) | Reconciliation of Free Cash Flow |
| € millions, unless otherwise stated |
Q1–Q4
2024 |
Q1–Q4 2023 |
| Net
cash flows from operating activities – continuing operations |
5,220 |
6,210 |
| Purchase of intangible assets and property, plant, and equipment |
–797 |
–785 |
| Payments of lease liabilities |
–310 |
–332 |
| Free
cash flow |
4,113 |
5,093 |
| |
|
|
| Net
cash flows from investing activities – continuing operations |
–656 |
–4,603 |
| Net
cash flows from financing activities – continuing operations |
–3,412 |
–7,758 |
| (F) | Non-IFRS Adjustments – Actuals and Estimates |
| € millions, unless otherwise stated |
Estimated Amounts for
Full Year 2025 |
Q4
2024 |
Q1–Q4
2024 |
Q4 2023 |
Q1–Q4 2023 |
| Profit
(loss) before tax from continuing operations (IFRS) |
|
2,207 |
4,764 |
1,810 |
5,341 |
| Adjustment for acquisition-related charges |
380-460 |
100 |
356 |
88 |
345 |
| Adjustment for restructuring |
approximately 100 |
323 |
3,144 |
–7 |
215 |
| Adjustment for regulatory compliance matter expenses |
0 |
–3 |
–11 |
–15 |
155 |
| Adjustment for gains and losses from equity securities, net |
N/A1 |
–314 |
–461 |
54 |
145 |
| Profit
(loss) before tax from continuing operations (non-IFRS) |
|
2,313 |
7,792 |
1,930 |
6,201 |
1
Due to the uncertainty and potential variability of gains and losses from equity securities, we cannot provide an estimate for the full
year without unreasonable efforts. This item could however have a material impact on our non-IFRS measures below operating profit.
| Quarterly
Statement Q4 2024 |
(G) Non-IFRS
Operating Expense Adjustments by Functional Areas
| € millions |
Q4
2024 |
Q4 2023 |
| |
IFRS |
Acquisition-
Related |
Restructuring |
RCM1 |
Non-IFRS |
IFRS |
Acquisition-
Related |
Restructuring |
RCM1 |
Non-IFRS |
| Cost of cloud |
–1,279 |
29 |
0 |
0 |
–1,250 |
–1,041 |
10 |
0 |
0 |
–1,030 |
| Cost of software licenses and support |
–319 |
0 |
0 |
0 |
–319 |
–374 |
0 |
0 |
0 |
–374 |
| Cost of services |
–837 |
0 |
0 |
0 |
–837 |
–850 |
1 |
0 |
0 |
–848 |
| Research and development |
–1,675 |
2 |
0 |
0 |
–1,673 |
–1,671 |
2 |
0 |
0 |
–1,669 |
| Sales and marketing |
–2,496 |
67 |
0 |
–14 |
–2,443 |
–2,266 |
64 |
0 |
–15 |
–2,216 |
| General and administration |
–378 |
2 |
0 |
11 |
–366 |
–367 |
9 |
0 |
0 |
–357 |
| Restructuring |
–323 |
0 |
323 |
0 |
0 |
7 |
0 |
–7 |
0 |
0 |
| Other operating income/expense, net |
–54 |
0 |
0 |
0 |
–54 |
–4 |
0 |
0 |
0 |
–4 |
| Total
operating expenses |
–7,361 |
100 |
323 |
–3 |
–6,941 |
–6,566 |
88 |
–7 |
–15 |
–6,499 |
1 Regulatory
Compliance Matters
| € millions |
Q1–Q4
2024 |
Q1–Q4 2023 |
| IFRS |
Acquisition-
Related |
Restructuring |
RCM1 |
Non-IFRS |
IFRS |
Acquisition-
Related |
Restructuring |
RCM1 |
Non-IFRS |
| Cost of cloud |
–4,660 |
78 |
0 |
0 |
–4,582 |
–3,884 |
42 |
0 |
0 |
–3,842 |
| Cost of software licenses and support |
–1,262 |
0 |
0 |
0 |
–1,262 |
–1,383 |
26 |
0 |
0 |
–1,356 |
| Cost of services |
–3,321 |
1 |
0 |
0 |
–3,321 |
–3,407 |
2 |
0 |
0 |
–3,405 |
| Research and development |
–6,514 |
5 |
0 |
0 |
–6,508 |
–6,324 |
7 |
0 |
0 |
–6,316 |
| Sales and marketing |
–9,090 |
255 |
0 |
–22 |
–8,856 |
–8,828 |
257 |
0 |
155 |
–8,415 |
| General and administration |
–1,435 |
16 |
0 |
11 |
–1,409 |
–1,364 |
11 |
0 |
0 |
–1,354 |
| Restructuring |
–3,144 |
0 |
3,144 |
0 |
0 |
–215 |
0 |
215 |
0 |
0 |
| Other operating income/expense, net |
–85 |
0 |
0 |
0 |
–85 |
–4 |
0 |
0 |
0 |
–4 |
| Total
operating expenses |
–29,511 |
356 |
3,144 |
–11 |
–26,022 |
–25,408 |
345 |
215 |
155 |
–24,693 |
1 Regulatory
Compliance Matters
If not presented in a separate line item in our income statement, the
restructuring expenses would break down as follows:
| € millions |
Q4
2024 |
Q1–Q4
2024 |
Q4 2023 |
Q1–Q4 2023 |
| Cost of cloud |
–1 |
–95 |
4 |
7 |
| Cost of software licenses and support |
–6 |
–85 |
1 |
–8 |
| Cost of services |
–41 |
–566 |
–4 |
–31 |
| Research and development |
–109 |
–1,197 |
2 |
–42 |
| Sales and marketing |
–149 |
–1,043 |
7 |
–121 |
| General and administration |
–17 |
–158 |
–3 |
–19 |
| Restructuring
expenses |
–323 |
–3,144 |
7 |
–215 |
| Quarterly
Statement Q4 2024 |
Disaggregations
(H) Segment
Reporting
SAP operates on a consolidated basis as one operating segment. For further
details, see Note (C.1) “Results of Segments” of our Consolidated
Half-Year Financial Statements 2024.
For more information about SAP’s operating performance, see the
Reconciliation from Non-IFRS Numbers to IFRS Numbers section.
(I) Revenue by Region (IFRS
and Non-IFRS)
(I.1) Revenue
by Region (IFRS and Non-IFRS) – Quarter
| € millions |
Q4
2024 |
Q4 2023 |
∆ in % |
| Actual
currency |
Currency
Impact |
Constant
Currency |
Actual currency |
Actual currency |
Constant
Currency |
| Cloud
Revenue by Region |
|
|
|
| EMEA |
1,920 |
–21 |
1,899 |
1,431 |
34 |
33 |
| Americas |
2,121 |
0 |
2,121 |
1,769 |
20 |
20 |
| APJ |
667 |
2 |
669 |
499 |
34 |
34 |
| Cloud
revenue |
4,708 |
–20 |
4,688 |
3,699 |
27 |
27 |
| Cloud
and Software Revenue by Region |
|
|
|
| EMEA |
3,840 |
–38 |
3,802 |
3,358 |
14 |
13 |
| Americas |
3,230 |
–1 |
3,229 |
2,979 |
8 |
8 |
| APJ |
1,197 |
3 |
1,200 |
1,045 |
15 |
15 |
| Cloud
and software revenue |
8,267 |
–37 |
8,230 |
7,382 |
12 |
11 |
| Total
Revenue by Region |
|
|
|
| Germany |
1,557 |
2 |
1,559 |
1,426 |
9 |
9 |
| Rest of EMEA |
2,838 |
–46 |
2,793 |
2,464 |
15 |
13 |
| Total
EMEA |
4,395 |
–43 |
4,352 |
3,890 |
13 |
12 |
| United States |
2,947 |
–25 |
2,922 |
2,724 |
8 |
7 |
| Rest of Americas |
714 |
23 |
737 |
674 |
6 |
9 |
| Total
Americas |
3,662 |
–2 |
3,659 |
3,398 |
8 |
8 |
| Japan |
370 |
7 |
377 |
329 |
12 |
15 |
| Rest of APJ |
950 |
–4 |
946 |
851 |
12 |
11 |
| Total
APJ |
1,320 |
3 |
1,323 |
1,180 |
12 |
12 |
| Total
revenue |
9,377 |
–43 |
9,334 |
8,468 |
11 |
10 |
| Quarterly
Statement Q4 2024 |
(I.2) Revenue by Region (IFRS
and Non-IFRS) – Year-to-Date
| € millions |
Q1–Q4
2024 |
Q1–Q4 2023 |
∆ in % |
| Actual
Currency |
Currency
Impact |
Constant
Currency |
Actual Currency |
Actual
Currency |
Constant
Currency |
| Cloud
Revenue by Region |
|
|
|
| EMEA |
6,892 |
–35 |
6,857 |
5,241 |
32 |
31 |
| Americas |
7,872 |
39 |
7,911 |
6,642 |
19 |
19 |
| APJ |
2,377 |
68 |
2,445 |
1,781 |
33 |
37 |
| Cloud
revenue |
17,141 |
72 |
17,212 |
13,664 |
25 |
26 |
| Cloud
and Software Revenue by Region |
|
|
|
| EMEA |
13,534 |
–60 |
13,475 |
12,028 |
13 |
12 |
| Americas |
11,987 |
59 |
12,046 |
10,959 |
9 |
10 |
| APJ |
4,308 |
127 |
4,435 |
3,937 |
9 |
13 |
| Cloud
and software revenue |
29,830 |
126 |
29,955 |
26,924 |
11 |
11 |
| Total
Revenue by Region |
|
|
|
| Germany |
5,359 |
3 |
5,361 |
4,921 |
9 |
9 |
| Rest of EMEA |
10,216 |
–72 |
10,143 |
9,083 |
12 |
12 |
| Total
EMEA |
15,575 |
–70 |
15,505 |
14,004 |
11 |
11 |
| United States |
11,056 |
2 |
11,058 |
10,204 |
8 |
8 |
| Rest of Americas |
2,752 |
59 |
2,812 |
2,558 |
8 |
10 |
| Total
Americas |
13,808 |
62 |
13,870 |
12,762 |
8 |
9 |
| Japan |
1,388 |
98 |
1,487 |
1,243 |
12 |
20 |
| Rest of APJ |
3,404 |
45 |
3,449 |
3,199 |
6 |
8 |
| Total
APJ |
4,793 |
143 |
4,936 |
4,441 |
8 |
11 |
| Total
revenue |
34,176 |
135 |
34,310 |
31,207 |
10 |
10 |
(J) Employees by Region
and Functional Areas
| Full-time equivalents |
12/31/2024 |
12/31/2023 |
| |
EMEA |
Americas |
APJ |
Total |
EMEA |
Americas |
APJ |
Total |
| Cloud and software |
4,543 |
4,339 |
4,764 |
13,646 |
4,389 |
4,266 |
4,426 |
13,080 |
| Services |
8,485 |
4,719 |
5,566 |
18,770 |
8,178 |
5,013 |
5,481 |
18,672 |
| Research and development |
18,819 |
5,677 |
13,094 |
37,590 |
18,086 |
5,884 |
12,474 |
36,444 |
| Sales and marketing |
12,042 |
9,801 |
5,139 |
26,983 |
12,086 |
10,300 |
5,342 |
27,728 |
| General and administration |
3,836 |
1,836 |
1,300 |
6,971 |
3,619 |
1,777 |
1,307 |
6,704 |
| Infrastructure |
3,076 |
1,164 |
921 |
5,161 |
2,834 |
1,274 |
867 |
4,975 |
| SAP
Group (12/31) |
50,801 |
27,536 |
30,784 |
109,121 |
49,191 |
28,515 |
29,897 |
107,602 |
| Thereof acquisitions1 |
413 |
414 |
86 |
912 |
421 |
138 |
0 |
558 |
| SAP
Group (nine months' end average) |
49,764 |
27,394 |
29,997 |
107,155 |
48,222 |
28,239 |
29,582 |
106,043 |
1
Acquisitions closed between January 1 and December 31 of the respective year.
| Quarterly
Statement Q4 2024 |
Other Disclosures
(K) Share-Based Payment
SAP’s
share-based payment expenses included in SAPs non-IFRS operating expenses break down as follows:
| € millions |
Q4
2024 |
Q1–Q4
2024 |
Q4 2023 |
Q1–Q4 2023 |
| Cost of cloud |
–34 |
–138 |
–24 |
–94 |
| Cost of software licenses and support |
–11 |
–42 |
–10 |
–38 |
| Cost of services |
–91 |
–360 |
–89 |
–375 |
| Research and development |
–180 |
–751 |
–170 |
–704 |
| Sales and marketing |
–200 |
–876 |
–208 |
–834 |
| General and administration |
–54 |
–217 |
–43 |
–175 |
| Share-based
payment expenses |
–570 |
–2,385 |
–543 |
–2,220 |
Additionally, in the fourth quarter of 2024 SAP recognized €138
million (Q4/2023: €0 million) of accelerated share-based payment expenses triggered by the transformation program. In the full year
2024 accelerated share-based payment expenses amounting to €309 million (Q1-Q4/2023: €0 million) have been recognized. These
share-based payment expenses are classified as restructuring expenses in SAP’s consolidated income statements.
Associated share-based payments in the full year 2024 amounted to €171
million (Q1-Q4/2023: €0 million) and are classified as a decrease in provisions and other liabilities in SAP’s consolidated
statements of cash flows.
(L) Restructuring
The
vast majority of the restructuring expenses and related payments recognized in the full year 2024 relate to the company-wide transformation
program that SAP announced in the first quarter to further increase its focus on key strategic growth areas, in particular business AI.
SAP is transforming its operational setup to capture organizational synergies and AI driven efficiencies, and to prepare the company for
highly scalable future revenue growth. The restructuring is intended to ensure that SAP’s skillset and resources continue to meet
future business needs. Restructuring expenses primarily include employee-related benefits such as severance payments and accelerated share-based
payment expenses triggered by the transformation program (for more information on recognition and measurement of share-based payment programs,
see Notes to the Consolidated Half-Year Financial Statements 2024, Note
B.3).
For the movement of the restructuring provision in 2024, please refer
to the table below:
| €
millions |
Restructuring
Provision |
| 1/1/2024 |
37 |
| Additions |
3,144 |
| Utilizations |
–1,061 |
| Transfer to other employee-related obligations |
–1,310 |
| Transfer to share-based compensation liability |
–123 |
| Currency effects |
–6 |
| 12/31/2024 |
681 |
For a reconciliation of the utilization of the restructuring provision
to the cash outflow related to restructuring, please refer to the table below:
| € millions |
Q1–Q4
2024 |
| Utilizations |
1,061 |
| Net cash flows time account |
1,325 |
| Cash-outflows of share-based payments related to restructuring |
171 |
| Employees taxes payable |
–70 |
| Net
cash outflow |
2,487 |
| Quarterly
Statement Q4 2024 |
(M) Business combinations
On June 5, 2024, SAP announced its intention to acquire 100% of WalkMe
Ltd. (“WalkMe”), a leader in Digital Adoption Platforms.
The transaction closed on September 12, 2024, following satisfaction
of regulatory and other approvals. The acquisition is expected to further expand SAP’s business transformation portfolio. WalkMe’s
solutions are designed to help companies navigate ongoing technological change by providing users with advanced guidance and automation
capabilities. The operating results, as well as the assets and liabilities (provisional values) are reflected in SAPs consolidated financial
statements starting from that date. The initial consideration transferred amounted to approximately €1.3 billion.
In the fourth quarter of 2024, the contribution of WalkMe to revenue
was approximately €46 million, to operating profit (IFRS) approximately €-39 million and operating profit (non-IFRS) approximately
€-20 million (non-IFRS). For the full year 2024 the contribution of WalkMe was approximately €61 million to revenue, approximately
€-54 million to operating profit (IFRS) and approximately €-29 million to operating profit (non-IFRS).
(N) 2025 Reporting changes
The following changes will be effective as of 2025.
(N.1) Consolidated
statements of cash flows
SAP has decided to change the presentation of its consolidated statements
of cash flows and no longer classify interest paid and interest received as a part of net cash flows from operating activities. Interest
paid will be presented under net cash flows from financing activities, and interest received will be presented under net cash flows from
investing activities. SAP doesn’t consider interest paid and interest received as parts of its operational activities. Thus, excluding
the influence of interest transactions from net cash flows from operating activities will better resonate with the managements way of
steering the company.
Applying this change in presentation to SAPs prior year’s financials
would result in the following net cash flows from operating-, investing-, and financing activities for 2024 and 2023.
| € millions |
Q1 2023 |
Q1-Q2
2023 |
Q1-Q3
2023 |
Q1-Q4
2023 |
Q1
2024 |
Q1-Q2
2024 |
Q1-Q3
2024 |
Q1-Q4
2024 |
| Net cash flows from operating activities (as reported) |
2,311 |
3,160 |
4,284 |
6,210 |
2,757 |
4,297 |
5,772 |
5,220 |
| Net cash flows from operating activities (new definition) |
2,364 |
3,206 |
4,258 |
6,134 |
2,878 |
4,388 |
5,791 |
5,207 |
| |
|
|
|
|
|
|
|
|
| Net cash flows from investing activities (as reported) |
–489 |
41 |
–2,718 |
–4,603 |
–1,129 |
–947 |
–618 |
–656 |
| Net cash flows from investing activities (new definition) |
–401 |
238 |
–2,387 |
–4,134 |
–986 |
–660 |
–197 |
–93 |
| |
|
|
|
|
|
|
|
|
| Net cash flows from financing activities (as reported) |
–1,226 |
–4,283 |
–6,797 |
–7,758 |
–522 |
–3,708 |
–3,180 |
–3,412 |
| Net cash flows from financing activities (new definition) |
–1,368 |
–4,526 |
–7,102 |
–8,151 |
–787 |
–4,086 |
–3,618 |
–3,961 |
(N.2) Free
Cash Flow
SAP will include proceeds from sales of intangible assets and property,
plant, and equipment in its calculation of free cash flow (FCF). This change, considering the net capital expenditure position instead
of cash outflows only, better reflects the way SAPs management evaluates the cash flow generated by operating activities after investments
into long-term assets and leasing.
Had the net capital expenditure position and the new definition of SAPs
net cash flows from operating activities, as mentioned in (N.1), been applied in 2023 and 2024, the impact on SAPs FCF would have been
the following.
| € millions |
Q1 2023 |
Q1-Q2
2023 |
Q1-Q3
2023 |
Q1-Q4
2023 |
Q1
2024 |
Q1-Q2
2024 |
Q1-Q3
2024 |
Q1-Q4
2024 |
| Free
Cash Flow (as reported) |
1,955 |
2,559 |
3,423 |
5,093 |
2,492 |
3,784 |
5,031 |
4,113 |
| Interest paid |
141 |
244 |
305 |
393 |
265 |
378 |
439 |
550 |
| Interest received |
–88 |
–197 |
–331 |
–469 |
–144 |
–287 |
–420 |
–563 |
| Proceeds from sales of intangible assets and property, plant, and equipment |
24 |
43 |
72 |
99 |
27 |
55 |
80 |
122 |
| Free
Cash Flow (new definition) |
2,032 |
2,649 |
3,469 |
5,116 |
2,642 |
3,929 |
5,130 |
4,222 |
We
estimate the impact of the changes described in note (N.1) and in note (N.2) to have a positive effect on SAPs 2025 FCF of approximately
€0.2 billion. This effect is reflected in SAPs 2025 FCF outlook.
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