- SAP SE (NYSE:SAP) said that it is planning a restructuring that will affect about 8,000 jobs, as it seeks to better focus on growth in artificial intelligence-driven business areas.
- Q4 Non-IFRS earnings per share (basic) increased 44% to €1.41.
- Revenue of €8.47B (+5.1% Y/Y) in Q4.
- Current cloud backlog of €13.7 billion, up 25% and up 27% at constant currencies.
- The effective tax rate was 33.8% (IFRS) and 31.4% (non-IFRS).
- 2024 outlook anticipates accelerating cloud revenue growth. For 2024, SAP expects: €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: €26.93 billion), up 8% to 10% at constant currencies.
- €7.6 – 7.9 billion non-IFRS operating profit at constant currencies (2023: €6.51 billion based on updated non-IFRS operating profit definition), up 17% to 21% at constant currencies.
- Free cash flow of approximately €3.5 billion (2023: €5.08 billion).
- An effective tax rate (non-IFRS) of approximately 32%.
- Planned transformation program including restructuring in 2024 reflects focus on scalability of operations and Business AI. The German software company said in a statement that its headcount should remain the same at year end.
- 2025 non-IFRS operating profit and free cash flow ambition updated to reflect updated non-IFRS definition as well as approximately half a billion Euro of incremental efficiency gains from the program.
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By 2025, SAP continues to expect:
- Cloud revenue of more than €21.5 billion.
- Total revenue of more than €37.5 billion.
- A share of more predictable revenue of approximately 86%.