Latest news with #DominikAsam
RTÉ News
23-04-2025
- Business
- RTÉ News
SAP shares jump on first-quarter profit beat, confirmed outlook
Shares in SAP, Europe's largest software maker, surged 8.5% today after the German company exceeded first-quarter profit forecasts, benefiting from cost cuts and defying business uncertainty from US tariffs. The stock's gain put it on track for its biggest one-day increase in more than five years, recovering some of the losses it has suffered since mid-February amid a wider market scare over US trade policy. SAP, which is riding a boom in demand for its cloud-based offerings spurred by artificial intelligence, also confirmed its full-year cloud revenue targets. The provider of systems to run finance, sales, supply chain and other corporate functions last night reported an adjusted operating profit of €2.5 billion for the first quarter, beating analysts' expectations for €2.22 billion. Analysts said the stock performance was due to improved results on the most important metrics - free cash flow, cloud order backlog and operating profit - and SAP maintaining its outlook for cloud revenues in a range of €21.6 billion to €21.9 billion for this year. Investors had concerns, though, on the potential impact of US tariffs. Finance chief Dominik Asam said the operating profit was "testament to our cost discipline". The group is in the middle of a cost-cutting drive and has previously announced up to 10,000 jobs out of its 100,000 total headcount were under review as it prepares for an era of AI, projecting restructuring costs of around €3 billion. CEO Christian Klein said he had not yet observed any reluctance to invest among SAP customers, who were relying on his company's software to react to any changed framework conditions. But general uncertainty could not be explained away, he said, adding: "Everyone is keeping a close eye on what happens in the next 90 days." Trump had suspended the import tariffs he had imposed on most countries for this period. Given the recent share price decline due to a tariff row between the US and China, the earnings beat will be taken as a positive by the market, said analysts at Baader.
Yahoo
23-04-2025
- Business
- Yahoo
SAP SE (SAP) Q1 2025 Earnings Call Highlights: Strong Cloud Growth and Robust Profit Margins
Current Cloud Backlog: EUR18.2 billion, up 29%. Cloud Revenue: Increased by 26% year-on-year. Cloud ERP Suite Growth: 33% increase, accounting for 85% of total cloud revenue. Total Revenue: EUR9 billion, up 11%. Operating Profit: Non-IFRS operating profit up 58% to EUR2.5 billion. Cloud Gross Margin: Improved by 2.6 percentage points to 75%. Operating Cash Flow: Increased by 31% to EUR3.8 billion. Free Cash Flow: Increased by 36% to EUR3.6 billion. Basic IFRS Earnings Per Share: EUR1.52. Non-IFRS Earnings Per Share: EUR1.44. Warning! GuruFocus has detected 7 Warning Signs with PMT. Release Date: April 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SAP SE (NYSE:SAP) reported a 29% increase in its current cloud backlog, reaching EUR18.2 billion in Q1 2025. Cloud revenue grew by 26% year-on-year, with the cloud ERP suite showing a 33% increase. Operating profit increased by 58% in Q1, driven by strong execution of SAP's transformation program. SAP SE (NYSE:SAP) maintained its position as the number one enterprise application software vendor according to IDC and Gartner. The company is seeing strong customer engagement across various industries, with significant deals in the automotive sector and public sector. Transactional cloud revenues experienced a slight decline in Q1, reflecting macroeconomic challenges. There is uncertainty regarding the impact of global trade disputes and tariffs on future conversion rates and revenue growth. The cloud revenue growth decelerated slightly from Q4, partly due to delayed ramp-ups from some deals. SAP SE (NYSE:SAP) faces potential risks from geopolitical tensions and tariffs, which could impact its cloud gross margins. The company acknowledges the difficulty in making projections for the entire year due to ongoing macroeconomic uncertainties. Q: Some companies have reported disruptions at the end of the quarter. Given the current environment, is your assumption that historical close rates will continue still valid? A: Christian Klein, CEO: Conversations with customers focus on gaining resiliency in supply chains and managing tariffs. Our pipeline remains solid, and we haven't seen deterioration in conversion rates. However, we are closely monitoring geopolitical developments. Q: Cloud revenue growth decelerated slightly from Q4. What caused this, and when can we expect growth to return to guidance levels? A: Dominik Asam, CFO: The deceleration was partly due to the timing of deal provisioning from Q4. We expect an acceleration in Q2 as these deals ramp up. Transactional revenues were weak due to macro conditions, but we anticipate improvement as the year progresses. Q: The current cloud backlog grew by 29%. Has it tracked above expectations, and what are you seeing in terms of market dynamics? A: Dominik Asam, CFO: The backlog growth was expected due to provisioning lead times. We are on track with our guidance for slight deceleration. We haven't seen significant changes in industry dynamics despite tariff uncertainties. Q: Can you explain how the Business Data Cloud differs from SAP Datasphere and its potential impact on revenue? A: Christian Klein, CEO: Business Data Cloud goes beyond Datasphere by providing a semantic layer that unifies SAP and non-SAP data. It enhances AI capabilities and offers significant value, leading to strong pipeline momentum. It is expected to be additive rather than replacing existing offerings. Q: With the number of large deals increasing, are you seeing any changes in customer behavior regarding deal size and scope? A: Christian Klein, CEO: We ensure large deals have quantified value and involve key decision-makers. The ramp-up of subscription fees aligns with the value delivered, providing stability even in uncertain times. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
22-04-2025
- Business
- Yahoo
SAP Quarterly Statement Q1 2025
Current cloud backlog of €18.2 billion, up 28% and up 29% at constant currencies Cloud revenue up 27% and up 26% at constant currencies Cloud ERP Suite revenue up 34% and up 33% at constant currencies Total revenue up 12% and up 11% at constant currencies IFRS operating profit of €2.3 billion; non-IFRS operating profit of €2.5 billion, up 60% and up 58% at constant currencies WALLDORF, Germany, April 22, 2025 /PRNewswire/ -- SAP SE (NYSE: SAP) announced today its financial results for the first quarter ended March 31, 2025. Christian Klein, CEO:Q1 once again underlines that our success formula is working. Current cloud backlog expanded 29% at constant currencies and total revenue saw a double-digit increase. With a share of more predictable revenue of 86%, SAP's business model remains resilient in uncertain times. Our AI-powered portfolio enables companies to navigate supply chain disruptions in over 130 countries and to unlock efficiencies with agility and speed. Dominik Asam, CFO:Q1 marks a solid start to the year in a highly volatile environment, with strong total revenue growth and outstanding operating profit expansion. These results are a testament to our cost discipline and focused execution. While we're encouraged by this momentum, we remain mindful of the broader environment and are approaching the rest of the year with vigilance, continuing to safeguard both profit and cash flow. Financial Performance Group results at a glance – First quarter 2025IFRSNon-IFRS1 € million, unless otherwise stated Q1 2025 Q1 2024 ∆ in %Q1 2025 Q1 2024 ∆ in % ∆ in %const. curr. SaaS/PaaS 4,890 3,764 304,890 3,764 30 28 Thereof Cloud ERP Suite2 4,251 3,167 344,251 3,167 34 33 Thereof Extension Suite3 639 598 7639 598 7 6 IaaS4 104 164 –37104 164 –37 –38 Cloud revenue 4,993 3,928 274,993 3,928 27 26 Cloud and software revenue 7,938 6,960 147,938 6,960 14 13 Total revenue 9,013 8,041 129,013 8,041 12 11 Share of more predictable revenue (in %) 86 84 2pp86 84 2ppCloud gross profit 3,720 2,837 313,745 2,849 31 30 Gross profit 6,607 5,762 156,632 5,774 15 14 Operating profit (loss) 2,333 –787 NA2,455 1,533 60 58 Profit (loss) after tax 1,796 –824 NA1,681 944 78Earnings per share - Basic (in €) 1.52 –0.71 NA1.44 0.81 79Net cash flows from operating activities 3,780 2,878 31Free cash flow 3,583 2,642 361 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. Further, Cloud ERP Suite also includes cloud-based maintenance components supporting our customers' ERP landscapes and their cloud transformation. The following offerings contribute to Cloud ERP Suite revenue: SAP Cloud ERP, SAP Business Technology Platform, financial- and spend management, supply chain management, core solutions for human capital management, commerce, business transformation management and AI. 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. Financial Highlights1 First Quarter 2025 In the first quarter, current cloud backlog grew by 28% to €18.20 billion and was up 29% at constant currencies. Cloud revenue was up 27% to €4.99 billion and up 26% at constant currencies. Cloud ERP Suite revenue was up 34% to €4.25 billion and up 33% at constant currencies. Software licenses revenue decreased by 10% to €0.18 billion and was down 10% at constant currencies. Cloud and software revenue was up 14% to €7.94 billion and up 13% at constant currencies. Services revenue was down 1% to €1.07 billion and down 2% at constant currencies. Total revenue was up 12% to €9.01 billion and up 11% at constant currencies. The share of more predictable revenue increased by 2 percentage points to 86%. IFRS cloud gross profit was up 31% to €3.72 billion. Non-IFRS cloud gross profit was up 31% to €3.74 billion and was up 30% at constant currencies. IFRS Cloud gross margin was up 2.3 percentage points to 74.5%, non-IFRS cloud gross margin up 2.5 percentage points to 75.0% and up 2.6 percentage points at constant currencies. IFRS operating profit increased to €2.33 billion and IFRS operating margin was up 35.7 percentage points to 25.9%. IFRS operating profit growth was positively impacted by a restructuring expense decline of €2.2 billion as compared to Q1 2024 in connection with the 2024 transformation program. Non-IFRS operating profit was up 60% to €2.46 billion and was up 58% at constant currencies, non-IFRS operating margin increased by 8.2 percentage points to 27.2% and was up 8.1 percentage points to 27.1% at constant currencies. Both, IFRS and non-IFRS operating profit growth benefitted from the operational efficiencies realized through successful execution of the 2024 transformation program. IFRS earnings per share (basic) increased to €1.52. Non-IFRS earnings per share (basic) increased 79% to €1.44. IFRS effective tax rate was 27.2% and non-IFRS effective tax rate was 29.4%. Both were mainly driven by a temporary inability to offset withholding taxes in Germany due to carryforward of tax losses from prior year. The IFRS effective tax rate is lower than the non-IFRS effective tax rate due to tax benefits from tax-exempt income. Operating cash flow in the first quarter was up 31% to €3.78 billion and free cash flow increased by 36% to €3.58 billion. The increase was mainly attributable to the higher profitability and the positive development of working capital (outside of restructuring related impacts), which was partially offset by higher payouts for share-based compensation and restructuring. 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 March 31, 2025, SAP had repurchased 18,985,135 shares at an average price of €164.79 resulting in a purchased volume of approximately €3.1 billion under the program. Additionally, the third tranche of the program was completed on April 08, 2025, with a purchased volume of approximately €1.5 billion. 2024 Transformation Program: Focus on scalability of operations and key strategic growth areas In January 2024, SAP announced a company-wide restructuring program which concluded as planned in the first quarter 2025. Overall expenses associated with the program are approximately €3.2 billion. Restructuring payouts amounted to €2.5 billion for the full-year 2024 and €0.3 billion for the first quarter 2025. Approximately €0.4 billion is expected to be paid out in the remainder of 2025. Business Highlights In the first quarter, customers around the globe continued to choose "RISE with SAP" to drive their end-to-end business transformations. These customers included: Alte Leipziger-Hallesche, East Japan Railway, Federal Employment Agency (Bundesagentur für Arbeit), Heijmans, HUGO BOSS, Hyundai Motor Company, Kia Corporation, Mazda Motor, Molson Coors Beverage Company, Piramal Pharma, SYENSQO, TOPPAN, Tyson Foods, Villeroy & Boch Group, Webasto Group, and WWZ Energie. Climeworks, HMM, LG Energy Solution, Lion, Nanometrics, and Samyang Foods went live on SAP S/4HANA Cloud in the first quarter. Gymshark, HARGASSNER, Oki Electric Industry, Sciens Building Solutions, Stegra, and VFS Global 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: ACTION, Booking, DKSH, Energy Queensland, Ferring Pharmaceuticals, KION GROUP, Klüber Lubrication München, The Kraft Heinz, Maastricht University, MARELLI Europe, NEC Corporation, Tibnor, and WEG. Alfred Ritter, Axpo Services, BASF Coatings, Deutsche Bahn, Parle Biscuits, Ravensburger, and Wipro went live on SAP solutions. In the first quarter, SAP's cloud revenue performance was particularly strong in APJ and EMEA and robust in the Americas region. Brazil, Chile, Germany, India, Italy, South Korea and Spain had outstanding performances, while Canada, China, France, Japan, Singapore and the U.S. were particularly strong. On February 13, SAP announced SAP Business Data Cloud, a groundbreaking solution that unifies SAP and third-party data throughout an organization, providing the trusted data foundation organizations need to make more impactful decisions and foster reliable AI. On February 20, SAP proposed a dividend of €2.35 per share for fiscal year 2024 representing a year-over-year increase of 6.8% compared to the regular dividend paid for fiscal year 2023. The dividend is subject to shareholder approval at the upcoming AGM scheduled for May 13, 2025. Outlook 2025 Financial Outlook 2025 While the prevailing dynamic environment implies elevated levels of uncertainty and reduced visibility, SAP currently continues to expect: €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) An effective tax rate (non-IFRS) of approximately 32% (2024: 32.3%)2. The company also continues to expect current cloud backlog growth at constant currencies 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 March 31, 2025. Rates Apply for 2025 In percentage points Q2 2025 FY 2025 Cloud revenue growth -1.0pp -2.0pp Cloud and software revenue growth -1.0pp -0.5pp Operating profit growth (non-IFRS) 0.0pp -1.0pp This includes an exchange rate of 1.08 USD per EUR. Additional Information This press release and all information therein is preliminary and unaudited. Due to rounding, numbers may not add up precisely. The Q1 2025 Quarterly Statement can be downloaded from: 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 can be found at Financial Analyst and Investor Conference SAP will hold a financial analyst event on Wednesday, May 21st, in conjunction with SAP Sapphire & ASUG Annual Conference Orlando. 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: Webcast SAP senior management will host a financial analyst conference call on Tuesday, April 22nd at 11:00 PM (CEST) / 10:00 PM (BST) / 5:00 PM (EDT) / 2:00 PM (PDT). The conference will be webcast on the Company's website at and will be available for replay. Supplementary financial information pertaining to the first quarter results can be found at 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 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) 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 2024 Annual Report on Form 20-F. © 2025 SAP SE. All rights and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see for additional trademark information and notices. 1 The Q1 2025 results were also impacted by other effects. For details, please refer to the disclosures on page 19 of this document. 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). View original content to download multimedia: SOURCE SAP SE Sign in to access your portfolio
Yahoo
31-01-2025
- Business
- Yahoo
SAP sees growing demand for sustainability software despite U.S. climate disengagement
(Reuters) - Germany's SAP sees a growing global demand for software to manage and document companies' sustainability efforts despite a trend of weakening climate protection targets in the United States, its chief financial officer, Dominik Asam, said in an interview with Reuters. This week, the United Nations said the U.S. will withdraw from the Paris climate agreement on Jan. 27, 2026, after Washington formally notified Secretary-General Antonio Guterres of President Donald Trump's decision to quit. "The topic of sustainability will not disappear from investors' discussions," Asam said, adding that he expects companies to still need reliable figures and analysis tools to make decisions on the topic. "I spoke to many investors at the World Economic Forum in Davos who are concerned with sustainability. They are very optimistic despite the recent U.S. elections," he adds. In this context, he sees potential for SAP's fledgling Green Ledger software that he said helps companies make their sustainability reporting as verifiable as a financial balance sheet, which will be required from 2028 in the framework of the European Corporate Sustainability Reporting Directive (CSRD). Apart from chemical firm Covestro, it's mainly SAP using the software, but the CFO expects contracts to be signed. "A lot will happen in the second half of this year," he said. Sign in to access your portfolio
Reuters
31-01-2025
- Business
- Reuters
SAP sees growing demand for sustainability software despite U.S. climate disengagement
Jan 31 (Reuters) - Germany's SAP ( opens new tab sees a growing global demand for software to manage and document companies' sustainability efforts despite a trend of weakening climate protection targets in the United States, its chief financial officer, Dominik Asam, said in an interview with Reuters. This week, the United Nations said the U.S. will withdraw from the Paris climate agreement on Jan. 27, 2026, after Washington formally notified Secretary-General Antonio Guterres of President Donald Trump's decision to quit. "The topic of sustainability will not disappear from investors' discussions," Asam said, adding that he expects companies to still need reliable figures and analysis tools to make decisions on the topic. "I spoke to many investors at the World Economic Forum in Davos who are concerned with sustainability. They are very optimistic despite the recent U.S. elections," he adds. In this context, he sees potential for SAP's fledgling Green Ledger software that he said helps companies make their sustainability reporting as verifiable as a financial balance sheet, which will be required from 2028 in the framework of the European Corporate Sustainability Reporting Directive (CSRD). Apart from chemical firm Covestro ( opens new tab, it's mainly SAP using the software, but the CFO expects contracts to be signed. "A lot will happen in the second half of this year," he said.
