Globaltraded.com — SAP SE (NYSE: SAP), the market leader in enterprise application software,, released its financial results for the third quarter ending September 30, 2023, showcasing robust performance in various key metrics.
Financial Highlights:
- Cloud revenue increased by 16%, with a 23% growth at constant currencies.
- Current cloud backlog reached €12.3 billion, showing a significant 19% increase and a 25% growth at constant currencies.
- IFRS cloud gross profit experienced a notable 21% increase, and non-IFRS cloud gross profit rose by 21%, with a 28% growth at constant currencies, driven by the expansion of cloud gross margin.
- IFRS operating profit went up by 11%, while non-IFRS operating profit increased by 10%, with a 16% growth at constant currencies.
Leadership Statements: Christian Klein, CEO of SAP, highlighted the Q3 results as evidence of entering the next phase of the company’s transformation. He emphasized accelerated cloud growth and expanded cloud gross margins, attributing the success to a strong focus on innovation, including the latest SAP Business AI capabilities.
Dominik Asam, CFO of SAP, underlined the strong execution and resilience of the business, showcasing sustained cloud growth amid persistent macro headwinds. He emphasized a balanced approach between growth and profitability to boost the bottom line, aiming for double-digit operating profit growth in the year.
Revenue Overview:
- Q3 2023 revenue reached $8.429 billion, indicating a 6.73% increase year-over-year.
- Twelve months ending September 30, 2023, saw a revenue of $33.339 billion, reflecting a 0.97% increase year-over-year.
- Annual revenue for 2022 was $32.526 billion, showing a 1.26% decline from 2021.
SAP SE provides solutions for companies of all sizes and industries. Their offerings redefine ERP and create networks of intelligent enterprises, ensuring transparency, resiliency, and sustainability across supply chains. With a global presence, SAP operates with 105,000 employees from 157+ countries.
SAP SE has successfully completed the acquisition of LeanIX, a market leader in enterprise architecture management (EAM). LeanIX’s software-as-a-service solutions empower organizations to visualize, assess, and manage transitions toward their target IT architecture. The acquisition enhances SAP’s transformation suite, enabling customers to navigate change more effectively and improve business processes permanently. The combined offering establishes a comprehensive foundation for AI-enabled transformation. (GT)
