1. SAP's Q4 cloud revenue rose 27% to €4.71 billion. 2. Cloud backlog increased 40% to €63 billion year-over-year. 3. Earnings per share up 31% to €1.37, reflecting profitability. 4. Free cash flow decreased to –€0.92 billion due to restructuring costs. 5. SAP anticipates continued growth, boosted by AI and cloud services.
Positive quarterly growth often leads to increased investor confidence, as seen historically.
Strong financial results enhance company outlook, likely affecting SAP’s stock performance positively.
SAP’s strategic focus on cloud and AI indicates sustained future growth potential.
SAP SE (NYSE: SAP) announced today its financial results for the fourth quarter and fiscal year ended December 31, 2024.
Q4 was a strong finish to the year, with half of our cloud order entry including AI. Looking at the full year, we exceeded our cloud goals, accelerating cloud revenue and current cloud backlog growth against a much larger base. Total cloud backlog now stands at €63 billion, up 40%. Revenue growth has returned to double-digits. Looking ahead, our strong position in data and Business AI gives us additional confidence that we will accelerate revenue growth through 2027.
We are pleased with the strong close to 2024, where we exceeded our cloud and software revenue, non-IFRS operating profit, and free cash flow outlook. With current cloud backlog growth of 29%, we've demonstrated the strength of our strategy and our ability to deliver on our commitments. This progress solidly aligns with the Ambition 2025 we set four years ago and positions us well for continued growth this year and beyond.
| IFRS | Non-IFRS | € million, unless otherwise stated | Q4 2024 | Q4 2023 | ∆ in % |
|---|---|---|---|---|---|
| SaaS/PaaS | 4,585 | 3,515 | 30 | ||
| Cloud revenue | 4,708 | 3,699 | 27 | ||
| Total revenue | 9,377 | 8,468 | 11 |
In the fourth quarter, current cloud backlog grew by 32% to €18.08 billion and was up 29% at constant currencies. Cloud revenue was up 27% to €4.71 billion and up 27% at constant currencies, fueled by Cloud ERP Suite revenue, which was up 35% to €3.95 billion and up 35% at constant currencies.
The outlook 2025 replaces SAP's former Ambition 2025. For 2025, SAP now expects:
This press release and all information therein is preliminary and unaudited. Due to rounding, numbers may not add up precisely. The full Q4 and FY 2024 Quarterly Statement can be downloaded from: SAP Investor Relations.
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