🏢 Company Overview
-
Full Name: SAP SE (Systeme, Anwendungen und Produkte in der Datenverarbeitung)
-
Founded: 1972
-
Headquarters: Walldorf, Germany
-
Industry: Enterprise Software, Cloud Computing, ERP Solutions
-
Stock Symbol: SAP (XETRA, NYSE)
SAP is one of the world’s largest enterprise software companies, known for its ERP (Enterprise Resource Planning) systems. It provides integrated business software to manage operations, customer relations, finance, supply chains, and human resources for organizations of all sizes.
📊 Financial Highlights (2024)
-
Total Revenue: €34.18 billion (↑10% YoY)
-
Cloud Revenue: €17.14 billion (↑25%)
-
Cloud + Software Revenue: €29.83 billion (↑11%)
-
Non-IFRS Operating Profit: €8.15 billion (↑25%)
-
Free Cash Flow: €4.22 billion
-
Cloud backlog: €63.29 billion (↑43%)
SAP continues to shift from on-premise software to a cloud-first model with significant success, reflecting strong customer demand and contract growth in its cloud services.
🔮 Outlook for 2025
-
Expected Cloud Revenue: €21.6–21.9 billion (↑26–28%)
-
Expected Cloud & Software Revenue: €33.1–33.6 billion
-
Expected Non-IFRS Operating Profit: €10.3–10.6 billion
-
Free Cash Flow Forecast: Around €8.0 billion
-
Recurring Revenue Share: Around 86%
SAP's 2025 targets show confidence in its transition to cloud and AI-powered enterprise solutions.
🤖 AI & Transformation Strategy
In 2024, SAP launched a major company-wide transformation program focusing on:
-
Accelerating investment in AI, data management, and security
-
Redesigning ~10,000 jobs (linked to €3 billion in transformation costs)
-
Expanding capabilities in SAP S/4HANA Cloud and Business AI
Their new slogan for this phase: “Future-Proofing the Intelligent Enterprise.”
📈 Stock Market Performance (2025)
-
Stock Growth (YTD): +16%
-
Key Drivers: Strong cloud transition, AI strategy, backlog growth
-
Risks: Currency fluctuations (e.g., stronger Euro affecting USD revenue — €0.01 rise = ~€30M loss)