Earnings Alerts

SAP (SAP) Earnings: 4Q Non-IFRS Revenue Surpasses Estimates with Strong Cloud Growth

By January 28, 2025 No Comments
  • SAP’s non-IFRS revenue for Q4 is €9.38 billion, surpassing the estimate of €9.14 billion.
  • Non-IFRS cloud and software revenue reached €8.27 billion, exceeding the expected €8.08 billion.
  • The non-IFRS cloud revenue amounted to €4.71 billion, slightly above the estimate of €4.68 billion.
  • Cloud revenue in constant currencies grew by 27%, matching the anticipated 27% increase.
  • Non-IFRS gross profit was €6.97 billion, higher than the forecasted €6.8 billion.
  • Operating profit on a non-IFRS basis totaled €2.44 billion, beating the estimate of €2.26 billion.
  • Profit after tax stood at €1.62 billion, ahead of the projected €1.39 billion.
  • Non-IFRS earnings per share (EPS) were €1.40, topping the estimate of €1.35.
  • SAP’s 2025 outlook anticipates an acceleration in cloud revenue growth.
  • The company expects a slight deceleration in the growth of the current cloud backlog in 2025.
  • Investment recommendations include 22 buys, 7 holds, and 3 sells.

A look at SAP Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth3
Resilience4
Momentum5
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, SAP has a positive long-term outlook. With high scores in Momentum and Resilience, the company demonstrates strength and stability in its operations. An above-average score in Growth indicates potential for expansion and development in the future. Although Value and Dividend scores are not as high, SAP’s focus on innovation and adaptability positions it well for continued success in the competitive software industry.

SAP SE, a multinational software company, is known for developing business software, providing consulting services on application usage, and offering training services. With a global market presence, SAP is recognized for its e-business and enterprise management solutions. The combination of its diverse product offerings and global reach contributes to SAP’s overall strong standing in the industry.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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