SAP Latest Report

Key Financial Data

1. SAP's total operating revenue as of December 31, 2024 was US$9.377 billion, up 10.74% from US$8.468 billion as of December 31, 2023.

2. SAP achieved steady growth in its cloud business, with 25% and 23% growth in the fourth quarter and full year of 2023, respectively.

3. Cloud business revenue is expected to accelerate in 2024, with a 27% increase in gross margin and a 13% increase in operating profit for the full year.

4. SAP's sales performance in the international market is strong, with Q1 2024 revenue of €8.04 billion, up 8% YoY; cloud service revenue up 24% YoY.

Peer Comparison

1. Industry-wide analysis: The overall software industry is experiencing growth under the trend of digital transformation, with many companies achieving revenue growth. The global enterprise software market is expected to grow by approximately 8%-10% in 2024. This trend provides a good industry backdrop for SAP's revenue growth.

2. Peer evaluation analysis: Compared with Salesforce and Oracle, SAP's 10.74% revenue growth rate is good. Although these companies are also growing, SAP shows stronger competitiveness in market share and customer base expansion.

Summary

SAP's total operating revenue growth is mainly driven by increased market demand, optimized product portfolio, improved sales strategy, and market expansion. The widespread adoption of cloud computing and AI technologies also provides strong support for its business growth. Despite the problems of layoffs and employee morale, market demand remains strong, especially in cloud services and business AI.

Opportunities

1. With the widespread adoption of cloud computing and AI technologies, SAP has potential for further expansion in cloud services and business AI.

2. SAP's cloud service platform performs well and can quickly deploy in the cloud, seizing market share.

3. The development and release of new products may further enhance market response and drive sales growth.

Risks

1. Although market demand is strong, economic uncertainty may affect customer budget decisions and negatively impact sales.

2. The company faces layoffs and employee morale issues, which may affect team morale and work efficiency.

3. Intensified competition, especially in cloud services and AI markets, may pose a challenge to SAP's market share.