SAP SE (SAP) 2024 Q3 Earnings Digest

SAP announced strong financial results for the third quarter of 2024, with significant growth in cloud revenue and operating profit. The company reported a current cloud backlog of €15.4 billion, a 25% increase year-over-year, and cloud revenue of €4.35 billion, up 25% year-over-year. This growth was driven by the strong performance of the Cloud ERP Suite, which saw a 34% increase in revenue. The company's IFRS operating profit was up 29% to €2.21 billion, while non-IFRS operating profit was up 27% to €2.24 billion. The company attributes the strong profit growth to revenue increases and the disciplined execution of the 2024 transformation program. Based on these strong results, SAP raised its 2024 outlook for cloud and software revenue to €29.5 – 29.8 billion at constant currencies, operating profit to €7.8 – 8.0 billion at constant currencies, and free cash flow to €3.5 – 4.0 billion.