Exhibit 99.1
 | Quarterly Statement Q3 2024 |
SAP Announces Q3 2024 Results
| · | Current cloud backlog of €15.4 billion, up 25% and up 29% at constant currencies |
| · | Cloud revenue up 25% and up 27% at constant currencies |
| · | Cloud ERP Suite revenue up 34% and up 36% at constant currencies |
| · | Total revenue up 9% and up 10% at constant currencies |
| · | IFRS cloud gross profit up 26%, non-IFRS cloud gross profit up 27% and up 28% at constant currencies |
| · | IFRS operating profit up 29%, non-IFRS operating profit up 27% and up 28% at constant currencies |
| · | SAP raises its 2024 outlook for cloud and software revenue, operating profit and free cash flow |
in € millions, unless otherwise stated
1/25
| Quarterly Statement Q3 2024 |
Walldorf, Germany – October 21, 2024
SAP SE (NYSE: SAP) announced today its financial results for the third quarter ended September 30, 2024.
Christian Klein, CEO:
Q3 was another strong quarter for SAP, and we are confidently raising our 2024 financial outlook. Cloud revenue growth developed remarkably well in the quarter, especially for our Cloud ERP Suite. Even more importantly, we are making strong progress on Business AI with groundbreaking innovations such as SAP Knowledge Graph. A significant part of our cloud deals in Q3 included AI use cases.
Dominik Asam, CFO:
We are very pleased with our third quarter performance. The 2024 transformation program has already started to yield efficiency improvements. This allowed us to deliver a strong operating profit and free cash flow, while retaining our topline momentum. We’re now focused on carrying that momentum into Q4 to safeguard the achievement of our 2025 ambition amidst a highly volatile environment.
Financial Performance
Group results at a glance – Third quarter 2024
| IFRS | Non-IFRS1 | |||||||
| € million, unless otherwise stated | Q3 2024 | Q3 2023 | ∆ in % | Q3 2024 | Q3 2023 | ∆ in % | ∆ in % const. curr. | |
| SaaS/PaaS | 4,234 | 3,291 | 29 | 4,234 | 3,291 | 29 | 30 | |
| Thereof Cloud ERP Suite2 | 3,636 | 2,711 | 34 | 3,636 | 2,711 | 34 | 36 | |
| Thereof Extension Suite3 | 597 | 581 | 3 | 597 | 581 | 3 | 4 | |
| IaaS4 | 117 | 180 | –35 | 117 | 180 | –35 | –34 | |
| Cloud revenue | 4,351 | 3,472 | 25 | 4,351 | 3,472 | 25 | 27 | |
| Cloud and software revenue | 7,429 | 6,679 | 11 | 7,429 | 6,679 | 11 | 12 | |
| Total revenue | 8,470 | 7,744 | 9 | 8,470 | 7,744 | 9 | 10 | |
| Share of more predictable revenue (in %) | 84 | 82 | 2pp | 84 | 82 | 2pp | ||
| Cloud gross profit | 3,184 | 2,525 | 26 | 3,209 | 2,535 | 27 | 28 | |
| Gross profit | 6,212 | 5,637 | 10 | 6,236 | 5,651 | 10 | 11 | |
| Operating profit (loss) | 2,214 | 1,723 | 29 | 2,244 | 1,767 | 27 | 28 | |
| Profit (loss) after tax from continuing operations | 1,441 | 1,272 | 13 | 1,437 | 1,352 | 6 | ||
| Profit (loss) after tax5 | 1,441 | 1,272 | 13 | 1,437 | 1,352 | 6 | ||
| Earnings per share - Basic (in €) from continuing operations | 1.25 | 1.09 | 15 | 1.23 | 1.16 | 6 | ||
| Earnings per share - Basic (in €)5 | 1.25 | 1.09 | 15 | 1.23 | 1.16 | 6 | ||
| Net cash flows from operating activities from continuing operations | 1,475 | 1,124 | 31 | |||||
| Free cash flow | 1,248 | 865 | 44 | |||||
1 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. The following offerings contribute to Cloud ERP Suite revenue: SAP S/4HANA Cloud, SAP Business Technology Platform, and core solutions for HR and payroll, spend management, commerce, customer data solutions, business process transformation, and working capital management. For additional information and historical data on Cloud ERP Suite, see SAP’s Reporting Framework.
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.
5 From continuing and discontinued operations.
2/25
| Quarterly Statement Q3 2024 |
Group results at a glance – Nine months ended September 2024
| IFRS | Non-IFRS1 | |||||||
| € million, unless otherwise stated | Q1–Q3 2024 | Q1–Q3 2023 | ∆ in % | Q1–Q3 2024 | Q1–Q3 2023 | ∆ in % | ∆ in % const. curr. | |
| SaaS/PaaS | 12,016 | 9,401 | 28 | 12,016 | 9,401 | 28 | 29 | |
| Thereof Cloud ERP Suite revenue2 | 10,217 | 7,695 | 33 | 10,217 | 7,695 | 33 | 34 | |
| Thereof Extension Suite revenue3 | 1,799 | 1,706 | 5 | 1,799 | 1,706 | 5 | 6 | |
| IaaS4 | 417 | 564 | –26 | 417 | 564 | –26 | –25 | |
| Cloud revenue | 12,433 | 9,965 | 25 | 12,433 | 9,965 | 25 | 26 | |
| Cloud and software revenue | 21,563 | 19,542 | 10 | 21,563 | 19,542 | 10 | 11 | |
| Total revenue | 24,798 | 22,739 | 9 | 24,798 | 22,739 | 9 | 10 | |
| Share of more predictable revenue (in %) | 84 | 82 | 2pp | 84 | 82 | 2pp | ||
| Cloud gross profit | 9,052 | 7,121 | 27 | 9,101 | 7,152 | 27 | 28 | |
| Gross profit | 17,990 | 16,330 | 10 | 18,039 | 16,388 | 10 | 11 | |
| Operating profit (loss) | 2,648 | 3,897 | –32 | 5,717 | 4,546 | 26 | 27 | |
| Profit (loss) after tax from continuing operations | 1,534 | 2,399 | –36 | 3,660 | 3,019 | 21 | ||
| Profit (loss) after tax5 | 1,534 | 4,763 | –68 | 3,660 | 4,801 | –24 | ||
| Earnings per share - Basic (in €) from continuing operations | 1.31 | 2.07 | –37 | 3.13 | 2.59 | 21 | ||
| Earnings per share - Basic (in €)5 | 1.31 | 4.21 | –69 | 3.13 | 4.39 | –29 | ||
| Net cash flows from operating activities from continuing operations | 5,772 | 4,284 | 35 | |||||
| Free cash flow | 5,031 | 3,423 | 47 | |||||
1 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. The following offerings contribute to Cloud ERP Suite revenue: SAP S/4HANA Cloud, SAP Business Technology Platform, and core solutions for HR and payroll, spend management, commerce, customer data solutions, business process transformation, and working capital management. For additional information and historical data on Cloud ERP Suite, see SAP’s Reporting Framework.
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.
5 From continuing and discontinued operations.
Financial Highlights1
Third Quarter 2024
In the third quarter, SAP’s strong business momentum continued. Current cloud backlog grew by 25% to €15.38 billion and was up 29% at constant currencies. The acquisition of WalkMe contributed approximately 1 percentage point to that growth rate. Cloud revenue was up 25% to €4.35 billion and up 27% at constant currencies, fueled by Cloud ERP Suite revenue, which was up 34% to €3.64 billion and up 36% at constant currencies.
Software licenses revenue decreased by 15% to €0.28 billion and was down 14% at constant currencies. Cloud and software revenue was up 11% to €7.43 billion and up 12% at constant currencies. Services revenue was down 2% to €1.04 billion and down 2% at constant currencies. Total revenue was up 9% to €8.47 billion and up 10% at constant currencies.
The share of more predictable revenue increased by 2 percentage points to 84% in the third quarter.
IFRS cloud gross profit was up 26% to €3.18 billion. Non-IFRS cloud gross profit was up 27% to €3.21 billion and was up 28% at constant currencies.
IFRS operating profit in the third quarter was up 29% to €2.21 billion. Non-IFRS operating profit was up 27% to €2.24 billion and was up 28% at constant currencies. Operating profit growth was mainly driven by strong revenue growth as well as disciplined execution of the 2024 transformation program.
1 The Q3 2024 results were also impacted by other effects. For details, please refer to the disclosures on page 25 of this document.
3/25
| Quarterly Statement Q3 2024 |
IFRS earnings per share (basic) increased 15% to €1.25. Non-IFRS earnings per share (basic) increased 6% to €1.23. IFRS effective tax rate was 33.0% (Q3/2023: 27.8%) and non-IFRS effective tax rate was 33.4% (Q3/2023: 27.1%). Both year-over-year increases mainly resulted from a temporary inability to offset withholding taxes in Germany due to tax losses in 2024 resulting from restructuring.
Free cash flow in the third quarter increased by 44% to €1.25 billion. While around €0.3 billion was paid out for restructuring, the positive development was primarily attributable to increased profitability and lower tax payments. For the first nine months, free cash flow was up 47% to €5.03 billion.
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 September 30, 2024, SAP had repurchased 16,709,250 shares at an average price of €157.09 resulting in a purchased volume of approximately €2.62 billion under the program.
2024 Transformation Program: Focus on scalability of operations and key strategic growth areas
In 2024, SAP is further increasing its focus on key strategic growth areas, in particular business AI. It is transforming its operational setup to capture organizational synergies and AI-driven efficiencies, and to prepare the company for highly scalable future revenue growth.
To this end, as announced in January, SAP is executing a company-wide restructuring program which is anticipated to conclude in early 2025. The restructuring is intended to ensure that SAP’s skillset and resources continue to meet future business needs and is currently expected to affect 9,000 to 10,000 positions, a majority of which will be covered by voluntary leave programs and internal re-skilling measures. Reflecting re-investments into strategic growth areas and the acquisition of WalkMe, SAP now expects to exit 2024 at a headcount slightly ahead of year-end 2023.
While restructuring expenses recorded in the first nine months of 2024 total €2.8 billion, the overall expenses associated with the program are estimated to be approximately €3 billion.
Restructuring payouts in the third quarter and first nine months of 2024 amounted to €0.3 billion and €0.8 billion respectively. Overall payouts associated with the program are currently expected at approximately €3 billion, of which a mid-triple-digit million amount is expected to occur in 2025.
Business Highlights
In the third quarter, customers around the globe continued to choose “RISE with SAP” to drive their end-to-end business transformations. These customers included: B3, CAF - the Development Bank of Latin America and the Caribbean, Chalhoub Group, Cochlear, Dakota Provisions, E.ON, eBay, Energy Queensland, Equinor, FairPrice Group, Gestamp Servicios, JAPAN AIRLINES, Lands’ End, Mercado Libre, Mondelez International, OLAM Global Agri, Roche, Rolls-Royce Power Systems, Schwarz Group, Siemens Healthineers, Southern Glazer's Wine & Spirits, SRAM, Tetra Pak, ZEON Corporation, and Zwilling.
Clorox, CPKC Railways, J.M. VOITH, KAESER KOMPRESSOREN, Nvidia, Panasonic Energy of North America, and VistaPrint went live on SAP S/4HANA Cloud in the third quarter.
Dawn Foods, DXC Technology, Gainsight, L’OCCITANE Group, Mistral AI, Palmer Candy, The Pool Tile Company, and SCHURTER Holding 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: AAK, Aramark, Bosideng, BY-HEALTH, Continental Automotive Technologies, Duni Group, Hamburg Commercial Bank, HR Campus, Kruger Services, Manchester City Council, Merck KGaA, PayPal, pfm medical, RWE, and VP Bank.
Breakthru Beverage Group, Cox Automotive Australia, and Heartland Dental went live on SAP solutions.
In the third quarter, SAP’s cloud revenue performance was particularly strong in APJ and EMEA and robust in the Americas region. Brazil, Chile, Germany, Italy, India, Japan and Spain had outstanding performances in cloud revenue growth while China, Saudi Arabia and the U.S. were particularly strong.
On July 30, SAP announced that the SAP Supervisory Board reached a mutual agreement with Executive Board Members Scott Russell and Julia White to leave the company’s Executive Board, effective August 31.
On September 3, SAP announced that the SAP Supervisory Board reached a mutual agreement with Chief Technology Officer and Executive Board Member Dr.-Ing. Juergen Mueller to leave the company’s Executive Board, effective September 30, 2024.
On September 12, SAP announced that it successfully completed its acquisition of WalkMe Ltd., a leading digital adoption platform company.
4/25
| Quarterly Statement Q3 2024 |
Financial Outlook 2024
SAP’s financial outlook 2024 is based on SAP’s updated non-IFRS definition of profit measures which, beginning in 2024, include share-based compensation expenses and exclude gains and losses from equity securities, net. For more details, please refer to the Reporting Framework section on our Investor Relations website: https://www.sap.com/investors/en/reports/reporting-framework.html.
For 2024, SAP is updating its cloud and software revenue, operating profit and free cash flow outlook and now expects:
| · | €29.5 – 29.8 billion cloud and software revenue at constant currencies (2023: €26.92 billion), up 10% to 11% at constant currencies, raising the midpoint by €400 million. The previous range was €29.0 – 29.5 billion at constant currencies. |
| · | €7.8 – 8.0 billion non-IFRS operating profit at constant currencies (2023: €6.51 billion), up 20% to 23% at constant currencies, raising the midpoint by €150 million. The previous range was €7.6 – 7.9 billion at constant currencies. |
| · | €3.5 – 4.0 billion free cash flow (2023: €5.09 billion). The previous outlook was approximately €3.5 billion. |
SAP continues to expect:
| · | €17.0 – 17.3 billion cloud revenue at constant currencies (2023: €13.66 billion), up 24% to 27% at constant currencies. |
| · | An effective tax rate (non-IFRS) of approximately 32% (2023: 30.3%)2. |
While SAP’s 2024 financial outlook is at constant currencies, 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 September 30, 2024 Rates Apply for 2024
| In percentage points | Q4 2024 | FY 2024 |
| Cloud revenue growth | –3.0pp | –1.0pp |
| Cloud and software revenue growth | –2.0pp | –1.0pp |
| Operating profit growth (non-IFRS) | –2.0pp | –2.0pp |
Non-Financial Outlook 2024
In 2024, SAP continues to expect:
| · | The Employee Engagement Index to be in a range of 70% to 74%. |
| · | A Customer Net Promoter Score of 9 to 13. |
| · | To steadily decrease carbon emissions across the relevant value chain, in line with our target of achieving Net Zero carbon emissions by 2030. |
| · | To steadily increase the number of women in executive roles in line with our end of year 2027 target to achieve 25%. |
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).
5/25
| Quarterly Statement Q3 2024 |
Additional Information
This press release and all information therein is preliminary and unaudited. Due to rounding, numbers may not add up precisely.
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: https://www.sap.com/investors/performance-measures
Webcast
SAP senior management will host a financial analyst conference call on Monday, October 21st 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 https://www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the third quarter results can be found at https://www.sap.com/investor
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 www.sap.com.
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6/25
| Quarterly Statement Q3 2024 |
Contents
| (A) | Consolidated Income Statements | 10 | |
| (A.1) | Consolidated Income Statements – Quarter | 10 | |
| (A.2) | Consolidated Income Statements – Year-to-Date | 11 | |
| (B) | Consolidated Statements of Financial Position | 12 | |
| (C) | Consolidated Statements of Cash Flows | 13 | |
| (D) | Basis of Non-IFRS Presentation | 14 | |
| (E) | Reconciliation from Non-IFRS Numbers to IFRS Numbers | 14 | |
| (E.1) | Reconciliation of Non-IFRS Revenue – Quarter | 14 | |
| (E.2) | Reconciliation of Non-IFRS Operating Expenses – Quarter | 15 | |
| (E.3) | Reconciliation of Non-IFRS Profit Figures, Income Tax, and Key Ratios – Quarter | 15 | |
| (E.4) | Reconciliation of Non-IFRS Revenue – Year-to-Date | 16 | |
| (E.5) | Reconciliation of Non-IFRS Operating Expenses – Year-to-Date | 16 | |
| (E.6) | Reconciliation of Non-IFRS Profit Figures, Income Tax, and Key Ratios – Year-to-Date | 17 | |
| (E.7) | Reconciliation of Free Cash Flow | 18 | |
| (F) | Non-IFRS Adjustments – Actuals and Estimates | 19 | |
| (G) | Non-IFRS Operating Expense Adjustments by Functional Areas | 19 | |
| (H) | Segment Reporting | 21 | |
| (I) | Revenue by Region (IFRS and Non-IFRS) | 21 | |
| (I.1) | Revenue by Region (IFRS and Non-IFRS) – Quarter | 21 | |
| (I.2) | Revenue by Region (IFRS and Non-IFRS) – Year-to-Date | 22 | |
| (J) | Employees by Region and Functional Areas | 23 | |
| (K) | Share-Based Payment | 24 | |
| (L) | Restructuring | 24 | |
| (M) | Business combinations | 25 | |
7/25
| Quarterly Statement Q3 2024 |
Financial and Non-Financial Key Facts
(IFRS and Non-IFRS)
| € millions, unless otherwise stated | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | TY 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
| Revenues | ||||||||
| Cloud | 3,178 | 3,316 | 3,472 | 3,699 | 13,664 | 3,928 | 4,153 | 4,351 |
| % change – yoy | 24 | 19 | 16 | 20 | 20 | 24 | 25 | 25 |
| % change constant currency – yoy | 22 | 22 | 23 | 25 | 23 | 25 | 25 | 27 |
| Cloud ERP Suite | 2,422 | 2,562 | 2,711 | 2,931 | 10,626 | 3,167 | 3,414 | 3,636 |
| % change – yoy | 35 | 30 | 26 | 28 | 29 | 31 | 33 | 34 |
| % change constant currency – yoy | 33 | 33 | 34 | 33 | 33 | 32 | 33 | 36 |
| Software licenses | 276 | 316 | 335 | 838 | 1,764 | 203 | 229 | 285 |
| % change – yoy | –13 | –26 | –17 | –8 | –14 | –26 | –28 | –15 |
| % change constant currency – yoy | –13 | –24 | –14 | –6 | –12 | –25 | –27 | –14 |
| Software support | 2,905 | 2,873 | 2,872 | 2,846 | 11,496 | 2,829 | 2,792 | 2,793 |
| % change – yoy | –1 | –3 | –5 | –5 | –3 | –3 | –3 | –3 |
| % change constant currency – yoy | –1 | –1 | –1 | –1 | –1 | –1 | –3 | –2 |
| Software licenses and support | 3,180 | 3,189 | 3,208 | 3,683 | 13,261 | 3,031 | 3,021 | 3,078 |
| % change – yoy | –2 | –6 | –6 | –6 | –5 | –5 | –5 | –4 |
| % change constant currency – yoy | –2 | –4 | –2 | –2 | –3 | –4 | –5 | –3 |
| Cloud and software | 6,358 | 6,505 | 6,679 | 7,382 | 26,924 | 6,960 | 7,175 | 7,429 |
| % change – yoy | 10 | 5 | 4 | 6 | 6 | 9 | 10 | 11 |
| % change constant currency – yoy | 8 | 8 | 9 | 10 | 9 | 11 | 10 | 12 |
| Total revenue | 7,441 | 7,554 | 7,744 | 8,468 | 31,207 | 8,041 | 8,288 | 8,470 |
| % change – yoy | 10 | 5 | 4 | 5 | 6 | 8 | 10 | 9 |
| % change constant currency – yoy | 9 | 8 | 9 | 9 | 9 | 9 | 10 | 10 |
| Share of more predictable revenue (in %) | 82 | 82 | 82 | 77 | 81 | 84 | 84 | 84 |
| Profits | ||||||||
| Operating profit (loss) (IFRS) | 803 | 1,371 | 1,723 | 1,902 | 5,799 | –787 | 1,222 | 2,214 |
| Operating profit (loss) (non-IFRS) | 1,321 | 1,457 | 1,767 | 1,969 | 6,514 | 1,533 | 1,940 | 2,244 |
| % change - yoy | –15 | 14 | 7 | 1 | 1 | 16 | 33 | 27 |
| % change constant currency - yoy | –15 | 19 | 13 | 5 | 5 | 19 | 35 | 28 |
| Profit (loss) after tax (IFRS) | 403 | 724 | 1,272 | 1,201 | 3,600 | –824 | 918 | 1,441 |
| Profit (loss) after tax (non-IFRS) | 868 | 799 | 1,352 | 1,302 | 4,321 | 944 | 1,278 | 1,437 |
| % change - yoy | –20 | –9 | 13 | –10 | –6 | 9 | 60 | 6 |
| Margins | ||||||||
| Cloud gross margin (IFRS, in %) | 70.5 | 71.1 | 72.7 | 71.9 | 71.6 | 72.2 | 73.0 | 73.2 |
| Cloud gross margin (non-IFRS, in %) | 70.8 | 71.4 | 73.0 | 72.2 | 71.9 | 72.5 | 73.3 | 73.7 |
| Software license and support gross margin (IFRS, in %) | 88.6 | 89.8 | 90.0 | 89.8 | 89.6 | 89.2 | 89.7 | 90.1 |
| Software license and support gross margin (non-IFRS, in %) | 88.9 | 90.2 | 90.1 | 89.8 | 89.8 | 89.2 | 89.7 | 90.1 |
| Cloud and software gross margin (IFRS, in %) | 79.5 | 80.3 | 81.0 | 80.8 | 80.4 | 79.6 | 80.0 | 80.2 |
| Cloud and software gross margin (non-IFRS, in %) | 79.9 | 80.6 | 81.2 | 81.0 | 80.7 | 79.8 | 80.2 | 80.5 |
| Gross margin (IFRS, in %) | 71.0 | 71.6 | 72.8 | 73.3 | 72.2 | 71.7 | 72.6 | 73.3 |
| Gross margin (non-IFRS, in %) | 71.3 | 71.9 | 73.0 | 73.4 | 72.4 | 71.8 | 72.7 | 73.6 |
| Operating margin (IFRS, in %) | 10.8 | 18.2 | 22.2 | 22.5 | 18.6 | –9.8 | 14.7 | 26.1 |
8/25
| Quarterly Statement Q3 2024 |
| € millions, unless otherwise stated | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | TY 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
| Operating margin (non-IFRS, in %) | 17.8 | 19.3 | 22.8 | 23.3 | 20.9 | 19.1 | 23.4 | 26.5 |
| Key Profit Ratios | ||||||||
| Effective tax rate (IFRS, in %) | 40.5 | 33.8 | 27.8 | 33.6 | 32.6 | 16.0 | 33.8 | 33.0 |
| Effective tax rate (non-IFRS, in %) | 29.1 | 33.0 | 27.1 | 32.5 | 30.3 | 32.4 | 33.6 | 33.4 |
| Earnings per share, basic (IFRS, in €) from continuing operations | 0.35 | 0.62 | 1.09 | 1.05 | 3.11 | –0.71 | 0.76 | 1.25 |
| Earnings per share, basic (non-IFRS, in €) from continuing operations | 0.75 | 0.69 | 1.16 | 1.12 | 3.72 | 0.81 | 1.10 | 1.23 |
| Earnings per share, basic (IFRS, in €)1 | 0.41 | 2.70 | 1.09 | 1.05 | 5.26 | –0.71 | 0.76 | 1.25 |
| Earnings per share, basic (non-IFRS, in €)1 | 0.83 | 2.40 | 1.16 | 1.12 | 5.51 | 0.81 | 1.10 | 1.23 |
| Order Entry and current cloud backlog | ||||||||
| Current cloud backlog | 11,148 | 11,537 | 12,269 | 13,745 | 13,745 | 14,179 | 14,808 | 15,377 |
| % change – yoy | 25 | 21 | 19 | 25 | 25 | 27 | 28 | 25 |
| % change constant currency – yoy | 25 | 25 | 25 | 27 | 27 | 28 | 28 | 29 |
| Share of cloud orders greater than €5 million based on total cloud order entry volume (in %) | 45 | 46 | 49 | 62 | 55 | 52 | 52 | 64 |
| Share of cloud orders smaller than €1 million based on total cloud order entry volume (in %) | 26 | 25 | 21 | 14 | 19 | 21 | 20 | 16 |
| Liquidity and Cash Flow | ||||||||
| Net cash flows from operating activities | 2,311 | 848 | 1,124 | 1,926 | 6,210 | 2,757 | 1,540 | 1,475 |
| Purchase of intangible assets and property, plant, and equipment | –257 | –156 | –182 | –190 | –785 | –187 | –178 | –163 |
| Payments of lease liabilities | –99 | –89 | –78 | –66 | –332 | –78 | –70 | –65 |
| Free cash flow | 1,955 | 604 | 865 | 1,670 | 5,093 | 2,492 | 1,291 | 1,248 |
| % of total revenue | 26 | 8 | 11 | 20 | 16 | 31 | 16 | 15 |
| % of profit after tax (IFRS) | 485 | 83 | 68 | 139 | 141 | NA | 141 | 87 |
| Cash and cash equivalents | 8,766 | 14,142 | 9,378 | 8,124 | 8,124 | 9,295 | 7,870 | 10,005 |
| Group liquidity | 9,700 | 14,326 | 12,122 | 11,275 | 11,275 | 13,411 | 11,449 | 11,856 |
| Financial debt (–) | –10,751 | –10,146 | –8,445 | –7,755 | –7,755 | –7,770 | –7,776 | –8,996 |
| Net liquidity (+) / Net debt(–) | –1,050 | 4,180 | 3,677 | 3,521 | 3,521 | 5,641 | 3,674 | 2,860 |
| Non-Financials | ||||||||
| Number of employees (quarter end)2 | 105,132 | 105,328 | 106,495 | 107,602 | 107,602 | 108,133 | 105,315 | 107,583 |
| Employee retention (in %, rolling 12 months) | 93.8 | 95.1 | 96.0 | 96.4 | 96.4 | 96.6 | 96.6 | 96.7 |
| Women in management (in %, quarter end) | 29.4 | 29.5 | 29.5 | 29.7 | 29.7 | 29.8 | 29.9 | 30.0 |
| Women in executive roles (in %, quarter end) | 21.8 | 21.9 | 22.1 | 22.2 | 22.2 | 21.7 | 21.9 | 22.0 |
Gross greenhouse gas emissions (in million tons CO2 equivalents) | 6.9 | 1.8 | 1.8 | 1.8 |
1 From continuing and discontinued operations.
2 In full-time equivalents.
3 Our gross greenhouse gas emissions (GHG) – which cover scope 1, scope 2, and scope 3 (market based) – include the total lifecycle emissions resulting from the use of our on-premise software. The calculation of use of sold products emissions is based on the number of active maintenance contracts at quarter end. Therefore, the emissions for individual quarters will not add up to the total sum of GHG emissions at year end.
9/25
| Quarterly Statement Q3 2024 |
Primary Financial Statements of SAP Group (IFRS)
(A) Consolidated Income Statements
(A.1) Consolidated Income Statements – Quarter
| € millions, unless otherwise stated | Q3 2024 | Q3 2023 | ∆ in % | |
| Cloud | 4,351 | 3,472 | 25 | |
| Software licenses | 285 | 335 | –15 | |
| Software support | 2,793 | 2,872 | –3 | |
| Software licenses and support | 3,078 | 3,208 | –4 | |
| Cloud and software | 7,429 | 6,679 | 11 | |
| Services | 1,041 | 1,065 | –2 | |
| Total revenue | 8,470 | 7,744 | 9 | |
| Cost of cloud | –1,167 | –946 | 23 | |
| Cost of software licenses and support | –306 | –321 | –5 | |
| Cost of cloud and software | –1,472 | –1,268 | 16 | |
| Cost of services | –786 | –840 | –6 | |
| Total cost of revenue | –2,258 | –2,108 | 7 | |
| Gross profit | 6,212 | 5,637 | 10 | |
| Research and development | –1,568 | –1,515 | 4 | |
| Sales and marketing | –2,098 | –2,105 | 0 | |
| General and administration | –361 | –327 | 10 | |
| Restructuring | 52 | 36 | 43 | |
| Other operating income/expense, net | –22 | –3 | >100 | |
| Total operating expenses | –6,256 | –6,022 | 4 | |
| Operating profit (loss) | 2,214 | 1,723 | 29 | |
| Other non-operating income/expense, net | –62 | 113 | N/A | |
| Finance income | 240 | 204 | 18 | |
| Finance costs | –241 | –279 | –14 | |
| Financial income, net | –1 | –75 | –99 | |
| Profit (loss) before tax from continuing operations | 2,151 | 1,761 | 22 | |
| Income tax expense | –710 | –489 | 45 | |
| Profit (loss) after tax from continuing operations | 1,441 | 1,272 | 13 | |
| Attributable to owners of parent | 1,463 | 1,278 | 15 | |
| Attributable to non-controlling interests | –23 | –6 | >100 | |
| Profit (loss) after tax from discontinued operations | 0 | 0 | NA | |
| Profit (loss) after tax1 | 1,441 | 1,272 | 13 | |
| Attributable to owners of parent1 | 1,463 | 1,278 | 15 | |
| Attributable to non-controlling interests1 | –23 | –6 | >100 | |
| Earnings per share, basic (in €)2 from continuing operations | 1.25 | 1.09 | 15 | |
| Earnings per share, basic (in €)1, 2 | 1.25 | 1.09 | 15 | |
| Earnings per share, diluted (in €)2 from continuing operations | 1.24 | 1.08 | 15 | |
| Earnings per share, diluted (in €)1, 2 | 1.24 | 1.08 | 15 |
1 From continuing and discontinued operations
2 For the three months ended September 30, 2024 and 2023, the weighted average number of shares was 1,166 million (diluted 1,178 million) and 1,168 million (diluted: 1,180 million), respectively (treasury stock excluded).
10/25
| Quarterly Statement Q3 2024 |
(A.2) Consolidated Income Statements – Year-to-Date
| € millions, unless otherwise stated | Q1–Q3 2024 | Q1–Q3 2023 | ∆ in % | |
| Cloud | 12,433 | 9,965 | 25 | |
| Software licenses | 716 | 927 | –23 | |
| Software support | 8,414 | 8,651 | –3 | |
| Software licenses and support | 9,130 | 9,577 | –5 | |
| Cloud and software | 21,563 | 19,542 | 10 | |
| Services | 3,236 | 3,197 | 1 | |
| Total revenue | 24,798 | 22,739 | 9 | |
| Cost of cloud | –3,381 | –2,843 | 19 | |
| Cost of software licenses and support | –943 | –1,008 | –6 | |
| Cost of cloud and software | –4,324 | –3,852 | 12 | |
| Cost of services | –2,485 | –2,557 | –3 | |
| Total cost of revenue | –6,808 | –6,409 | 6 | |
| Gross profit | 17,990 | 16,330 | 10 | |
| Research and development | –4,839 | –4,653 | 4 | |
| Sales and marketing | –6,594 | –6,562 | 0 | |
| General and administration | –1,057 | –997 | 6 | |
| Restructuring | –2,821 | –221 | >100 | |
| Other operating income/expense, net | –31 | 0 | NA | |
| Total operating expenses | –22,150 | –18,842 | 18 | |
| Operating profit (loss) | 2,648 | 3,897 | –32 | |
| Other non-operating income/expense, net | –215 | –3 | >100 | |
| Finance income | 850 | 573 | 48 | |
| Finance costs | –726 | –935 | –22 | |
| Financial income, net | 124 | –363 | NA | |
| Profit (loss) before tax from continuing operations | 2,557 | 3,532 | –28 | |
| Income tax expense | –1,023 | –1,132 | –10 | |
| Profit (loss) after tax from continuing operations | 1,534 | 2,399 | –36 | |
| Attributable to owners of parent | 1,523 | 2,413 | –37 | |
| Attributable to non-controlling interests | 11 | –13 | NA | |
| Profit (loss) after tax from discontinued operations | 0 | 2,363 | NA | |
| Profit (loss) after tax1 | 1,534 | 4,763 | –68 | |
| Attributable to owners of parent1 | 1,523 | 4,917 | –69 | |
| Attributable to non-controlling interests1 | 11 | –155 | NA | |
| Earnings per share, basic (in €)2 from continuing operations | 1.31 | 2.07 | –37 | |
| Earnings per share, basic (in €)1, 2 | 1.31 | 4.21 | –69 | |
| Earnings per share, diluted (in €)2 from continuing operations | 1.29 | 2.05 | –37 | |
| Earnings per share, diluted (in €)1, 2 | 1.29 | 4.17 | –69 |
1 From continuing and discontinued operations
2 For the nine months ended September 30, 2024 and 2023, the weighted average number of shares was 1,167 million (diluted: 1,179 million) and 1,168 million (diluted: 1,179 million), respectively (treasury stock excluded).
11/25
| Quarterly Statement Q3 2024 |
(B) Consolidated Statements of Financial Position
| as at 09/30/2024 and 12/31/2023 | ||
| € millions | 2024 | 2023 |
| Cash and cash equivalents | 10,005 | 8,124 |
| Other financial assets | 2,067 | 3,344 |
| Trade and other receivables | 5,481 | 6,322 |
| Other non-financial assets | 2,436 | 2,374 |
| Tax assets | 517 | 407 |
| Total current assets | 20,506 | 20,571 |
| Goodwill | 29,487 | 29,088 |
| Intangible assets | 2,708 | 2,505 |
| Property, plant, and equipment | 4,239 | 4,276 |
| Other financial assets | 6,145 | 5,543 |
| Trade and other receivables | 142 | 203 |
| Other non-financial assets | 3,450 | 3,573 |
| Tax assets | 333 | 382 |
| Deferred tax assets | 2,639 | 2,193 |
| Total non-current assets | 49,142 | 47,763 |
| Total assets | 69,648 | 68,335 |
| € millions | 2024 | 2023 |
| Trade and other payables | 1,932 | 1,783 |
| Tax liabilities | 502 | 266 |
| Financial liabilities | 3,864 | 1,735 |
| Other non-financial liabilities | 4,220 | 5,648 |
| Provisions | 2,149 | 235 |
| Contract liabilities | 5,989 | 4,975 |
| Total current liabilities | 18,655 | 14,642 |
| Trade and other payables | 15 | 39 |
| Tax liabilities | 846 | 877 |
| Financial liabilities | 7,039 | 7,941 |
| Other non-financial liabilities | 800 | 698 |
| Provisions | 442 | 433 |
| Deferred tax liabilities | 318 | 265 |
| Contract liabilities | 67 | 33 |
| Total non-current liabilities | 9,526 | 10,286 |
| Total liabilities | 28,181 | 24,928 |
| Issued capital | 1,229 | 1,229 |
| Share premium | 2,420 | 1,845 |
| Retained earnings | 41,424 | 42,457 |
| Other components of equity | 1,931 | 2,368 |
| Treasury shares | –5,793 | –4,741 |
| Equity attributable to owners of parent | 41,212 | 43,157 |
| Non-controlling interests | 255 | 249 |
| Total equity | 41,467 | 43,406 |
| Total equity and liabilities | 69,648 | 68,335 |
12/25
| Quarterly Statement Q3 2024 |
(C) Consolidated Statements of Cash Flows
| € millions | Q1–Q3 2024 | Q1–Q3 2023 |
| Profit (loss) after tax | 1,534 | 4,671 |
| Adjustments to reconcile profit (loss) after tax to net cash flows from operating activities: | ||
| (Profit) loss after tax from discontinued operations | 0 | –2,272 |
| Depreciation and amortization | 943 | 1,042 |
| Share-based payment expense | 1,815 | 1,677 |
| Income tax expense | 1,023 | 1,132 |
| Financial income, net | –124 | 363 |
| Decrease/increase in allowances on trade receivables | –8 | 12 |
| Other adjustments for non-cash items | 212 | –35 |
| Increase/decrease in trade and other receivables | 943 | 678 |
| Decrease/increase in other assets | 56 | –555 |
| Increase/decrease in trade payables, provisions, and other liabilities | 746 | –470 |
| Increase/decrease in contract liabilities | 1,054 | 552 |
| Share-based payments | –1,064 | –967 |
| Interest paid | –439 | –305 |
| Interest received | 420 | 331 |
| Income taxes paid, net of refunds | –1,341 | –1,570 |
| Net cash flows from operating activities – continuing operations | 5,772 | 4,284 |
| Net cash flows from operating activities – discontinued operations | 0 | 80 |
| Net cash flows from operating activities | 5,772 | 4,364 |
| Business combinations, net of cash and cash equivalents acquired | –1,104 | 0 |
| Cash flows from derivative financial instruments related to the sale of subsidiaries or businesses | 0 | –91 |
| Purchase of intangible assets and property, plant, and equipment | –528 | –595 |
| Proceeds from sales of intangible assets and property, plant, and equipment | 80 | 72 |
| Purchase of equity or debt instruments of other entities | –6,517 | –2,969 |
| Proceeds from sales of equity or debt instruments of other entities | 7,452 | 865 |
| Net cash flows from investing activities – continuing operations | –618 | –2,718 |
| Net cash flows from investing activities – discontinued operations | 0 | 5,625 |
| Net cash flows from investing activities | –618 | 2,907 |
| Dividends paid | –2,565 | –2,395 |
| Dividends paid on non-controlling interests | 0 | –18 |
| Purchase of treasury shares | –1,625 | –718 |
| Proceeds from borrowings | 1,251 | 0 |
| Repayments of borrowings | –14 | –3,442 |
| Payments of lease liabilities | –213 | –266 |
| Transactions with non-controlling interests | –13 | 42 |
| Net cash flows from financing activities – continuing operations | –3,180 | –6,797 |
| Net cash flows from financing activities – discontinued operations | 0 | 24 |
| Net cash flows from financing activities | –3,180 | –6,773 |
| Effect of foreign currency rates on cash and cash equivalents | –94 | –128 |
| Net decrease/increase in cash and cash equivalents | 1,881 | 370 |
| Cash and cash equivalents at the beginning of the period | 8,124 | 9,008 |
| Cash and cash equivalents at the end of the period | 10,005 | 9,378 |
13/25
| Quarterly Statement Q3 2024 |
Non-IFRS Numbers
(D) Basis of Non-IFRS Presentation
SAP discloses certain financial measures such as expense (non-IFRS) and profit measures (non-IFRS) that are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures.
For a more detailed description of all of SAP’s non-IFRS measures and their limitations as well as SAP’s constant currency and free cash flow figures, see Explanation of Non-IFRS Measures.
(E) Reconciliation from Non-IFRS Numbers to IFRS Numbers
(E.1) Reconciliation of Non-IFRS Revenue – Quarter
| € millions, unless otherwise stated | Q3 2024 | Q3 2023 | ∆ in % | |||
| IFRS | Currency Impact | Non-IFRS Constant Currency | IFRS | IFRS | Non-IFRS Constant Currency | |
| Revenue Numbers | ||||||
| Cloud | 4,351 | 43 | 4,394 | 3,472 | 25 | 27 |
| Software licenses | 285 | 2 | 287 | 335 | –15 | –14 |
| Software support | 2,793 | 24 | 2,817 | 2,872 | –3 | –2 |
| Software licenses and support | 3,078 | 26 | 3,104 | 3,208 | –4 | –3 |
| Cloud and software | 7,429 | 69 | 7,497 | 6,679 | 11 | 12 |
| Services | 1,041 | 7 | 1,048 | 1,065 | –2 | –2 |
| Total revenue | 8,470 | 76 | 8,546 | 7,744 | 9 | 10 |
14/25
| Quarterly Statement Q3 2024 |
(E.2) Reconciliation of Non-IFRS Operating Expenses – Quarter
| € millions, unless otherwise stated | Q3 2024 | Q3 2023 | ∆ in % | ||||||||
| IFRS | Adj. | Non-IFRS | Currency Impact | Non-IFRS Constant Currency | IFRS | Adj. | Non-IFRS | IFRS | Non-IFRS | Non-IFRS Constant Currency | |
| Operating Expense Numbers | |||||||||||
| Cost of cloud | –1,167 | 25 | –1,142 | –946 | 10 | –937 | 23 | 22 | |||
| Cost of software licenses and support | –306 | 0 | –306 | –321 | 4 | –318 | –5 | –4 | |||
| Cost of cloud and software | –1,472 | 25 | –1,448 | –1,268 | 14 | –1,254 | 16 | 15 | |||
| Cost of services | –786 | 0 | –785 | –840 | 0 | –840 | –6 | –6 | |||
| Total cost of revenue | –2,258 | 25 | –2,233 | –2,108 | 14 | –2,094 | 7 | 7 | |||
| Gross profit | 6,212 | 25 | 6,236 | 50 | 6,286 | 5,637 | 14 | 5,651 | 10 | 10 | 11 |
| Research and development | –1,568 | 0 | –1,568 | –1,515 | 2 | –1,513 | 4 | 4 | |||
| Sales and marketing | –2,098 | 51 | –2,047 | –2,105 | 64 | –2,041 | 0 | 0 | |||
| General and administration | –361 | 6 | –356 | –327 | 0 | –327 | 10 | 9 | |||
| Restructuring | 52 | –52 | 0 | 36 | –36 | 0 | 43 | NA | |||
| Other operating income/expense, net | –22 | 0 | –22 | –3 | 0 | –3 | >100 | >100 | |||
| Total operating expenses | –6,256 | 30 | –6,226 | –67 | –6,293 | –6,022 | 44 | –5,978 | 4 | 4 | 5 |
(E.3) Reconciliation of Non-IFRS Profit Figures, Income Tax, and Key Ratios – Quarter
| € millions, unless otherwise stated | Q3 2024 | Q3 2023 | ∆ in % | ||||||||
| IFRS | Adj. | Non-IFRS | Currency Impact | Non-IFRS Constant Currency | IFRS | Adj. | Non-IFRS | IFRS | Non-IFRS | Non-IFRS Constant Currency | |
| Profit Numbers | |||||||||||
| Operating profit (loss) | 2,214 | 30 | 2,244 | 9 | 2,253 | 1,723 | 44 | 1,767 | 29 | 27 | 28 |
| Other non-operating income/expense, net | –62 | 0 | –62 | 113 | 0 | 113 | NA | NA | |||
| Finance income | 240 | –87 | 153 | 204 | –53 | 151 | 18 | 1 | |||
| Finance costs | –241 | 63 | –178 | –279 | 103 | –177 | –14 | 1 | |||
| Financial income, net | –1 | –24 | –24 | –75 | 50 | –25 | –99 | –3 | |||
| Profit (loss) before tax from continuing operations | 2,151 | 6 | 2,157 | 1,761 | 94 | 1,855 | 22 | 16 | |||
| Income tax expense | –710 | –10 | –720 | –489 | –13 | –502 | 45 | 43 | |||
| Profit (loss) after tax from continuing operations | 1,441 | –3 | 1,437 | 1,272 | 81 | 1,352 | 13 | 6 | |||
| Attributable to owners of parent | 1,463 | –29 | 1,434 | 1,278 | 72 | 1,350 | 15 | 6 | |||
| Attributable to non-controlling interests | –23 | 26 | 3 | –6 | 9 | 3 | >100 | 18 | |||
| Profit (loss) after tax1 | 1,441 | –3 | 1,437 | 1,272 | 81 | 1,352 | 13 | 6 | |||
| Attributable to owners of parent1 | 1,463 | –29 | 1,434 | 1,278 | 72 | 1,350 | 15 | 6 | |||
| Attributable to non-controlling interests1 | –23 | 26 | 3 | –6 | 9 | 3 | >100 | 18 | |||
| Key Ratios | |||||||||||
| Operating margin (in %) | 26.1 | 26.5 | 26.4 | 22.2 | 22.8 | 3.9pp | 3.7pp | 3.5pp | |||
| Effective tax rate (in %)2 | 33.0 | 33.4 | 27.8 | 27.1 | 5.3pp | 6.3pp | |||||
| Earnings per share, basic (in €) from continuing operations | 1.25 | 1.23 | 1.09 | 1.16 | 15 | 6 | |||||
| Earnings per share, basic (in €)1 | 1.25 | 1.23 | 1.09 | 1.16 | 15 | 6 | |||||
1 From continuing and discontinued operations
2 The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q3 2024 and Q3 2023 mainly resulted from tax effects of acquisition-related charges and restructuring expenses.
15/25
| Quarterly Statement Q3 2024 |
(E.4) Reconciliation of Non-IFRS Revenue – Year-to-Date
| € millions, unless otherwise stated | Q1–Q3 2024 | Q1–Q3 2023 | ∆ in % | |||
| IFRS | Currency Impact | Non-IFRS Constant Currency | IFRS | IFRS | Non-IFRS Constant Currency | |
| Revenue Numbers | ||||||
| Cloud | 12,433 | 92 | 12,524 | 9,965 | 25 | 26 |
| Software licenses | 716 | 7 | 723 | 927 | –23 | –22 |
| Software support | 8,414 | 64 | 8,478 | 8,651 | –3 | –2 |
| Software licenses and support | 9,130 | 71 | 9,201 | 9,577 | –5 | –4 |
| Cloud and software | 21,563 | 162 | 21,725 | 19,542 | 10 | 11 |
| Services | 3,236 | 15 | 3,251 | 3,197 | 1 | 2 |
| Total revenue | 24,798 | 178 | 24,976 | 22,739 | 9 | 10 |
(E.5) Reconciliation of Non-IFRS Operating Expenses – Year-to-Date
| € millions, unless otherwise stated | Q1–Q3 2024 | Q1–Q3 2023 | ∆ in % | ||||||||
| IFRS | Adj. | Non-IFRS | Currency Impact | Non-IFRS Constant Currency | IFRS | Adj. | Non-IFRS | IFRS | Non-IFRS | Non-IFRS Constant Currency | |
| Operating Expense Numbers | |||||||||||
| Cost of cloud | –3,381 | 49 | –3,332 | –2,843 | 31 | –2,812 | 19 | 18 | |||
| Cost of software licenses and support | –943 | 0 | –943 | –1,008 | 26 | –982 | –6 | –4 | |||
| Cost of cloud and software | –4,324 | 49 | –4,275 | –3,852 | 57 | –3,795 | 12 | 13 | |||
| Cost of services | –2,485 | 0 | –2,484 | –2,557 | 1 | –2,557 | –3 | –3 | |||
| Total cost of revenue | –6,808 | 50 | –6,759 | –6,409 | 58 | –6,351 | 6 | 6 | |||
| Gross profit | 17,990 | 50 | 18,039 | 147 | 18,187 | 16,330 | 58 | 16,388 | 10 | 10 | 11 |
| Research and development | –4,839 | 3 | –4,835 | –4,653 | 6 | –4,647 | 4 | 4 | |||
| Sales and marketing | –6,594 | 180 | –6,413 | –6,562 | 363 | –6,199 | 0 | 3 | |||
| General and administration | –1,057 | 14 | –1,043 | –997 | 1 | –996 | 6 | 5 | |||
| Restructuring | –2,821 | 2,821 | 0 | –221 | 221 | 0 | >100 | NA | |||
| Other operating income/expense, net | –31 | 0 | –31 | 0 | 0 | 0 | NA | NA | |||
| Total operating expenses | –22,150 | 3,069 | –19,081 | –102 | –19,183 | –18,842 | 649 | –18,193 | 18 | 5 | 5 |
16/25
| Quarterly Statement Q3 2024 |
(E.6) Reconciliation of Non-IFRS Profit Figures, Income Tax, and Key Ratios – Year-to-Date
| € millions, unless otherwise stated | Q1–Q3 2024 | Q1–Q3 2023 | ∆ in % | ||||||||
| IFRS | Adj. | Non-IFRS | Currency Impact | Non-IFRS Constant Currency | IFRS | Adj. | Non-IFRS | IFRS | Non-IFRS | Non-IFRS Constant Currency | |
| Profit Numbers | |||||||||||
| Operating profit (loss) | 2,648 | 3,069 | 5,717 | 76 | 5,793 | 3,897 | 649 | 4,546 | –32 | 26 | 27 |
| Other non-operating income/expense, net | –215 | 0 | –215 | –3 | 0 | –3 | >100 | >100 | |||
| Finance income | 850 | –369 | 482 | 573 | –238 | 335 | 48 | 44 | |||
| Finance costs | –726 | 222 | –504 | –935 | 329 | –607 | –22 | –17 | |||
| Financial income, net | 124 | –147 | –23 | –363 | 91 | –272 | NA | –92 | |||
| Profit (loss) before tax from continuing operations | 2,557 | 2,922 | 5,479 | 3,532 | 739 | 4,271 | –28 | 28 | |||
| Income tax expense | –1,023 | –796 | –1,819 | –1,132 | –120 | –1,252 | –10 | 45 | |||
| Profit (loss) after tax from continuing operations | 1,534 | 2,126 | 3,660 | 2,399 | 620 | 3,019 | –36 | 21 | |||
| Attributable to owners of parent | 1,523 | 2,134 | 3,657 | 2,413 | 615 | 3,028 | –37 | 21 | |||
| Attributable to non-controlling interests | 11 | –8 | 3 | –13 | 5 | –9 | NA | NA | |||
| Profit (loss) after tax1 | 1,534 | 2,126 | 3,660 | 4,763 | 38 | 4,801 | –68 | –24 | |||
| Attributable to owners of parent1 | 1,523 | 2,134 | 3,657 | 4,917 | 208 | 5,125 | –69 | –29 | |||
| Attributable to non-controlling interests1 | 11 | –8 | 3 | –155 | –170 | –325 | NA | NA | |||
| Key Ratios | |||||||||||
| Operating margin (in %) | 10.7 | 23.1 | 23.2 | 17.1 | 20.0 | –6.5pp | 3.1pp | 3.2pp | |||
| Effective tax rate (in %)2 | 40.0 | 33.2 | 32.1 | 29.3 | 7.9pp | 3.9pp | |||||
| Earnings per share, basic (in €) from continuing operations | 1.31 | 3.13 | 2.07 | 2.59 | –37 | 21 | |||||
| Earnings per share, basic (in €)1 | 1.31 | 3.13 | 4.21 | 4.39 | –69 | –29 | |||||
1 From continuing and discontinued operations
2 The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in the first nine months of 2024 and 2023 mainly resulted from tax effects of restructuring expenses and acquisition-related charges.
17/25
| Quarterly Statement Q3 2024 |
(E.7) Reconciliation of Free Cash Flow
| € millions, unless otherwise stated | Q1–Q3 2024 | Q1–Q3 2023 |
| Net cash flows from operating activities – continuing operations | 5,772 | 4,284 |
| Purchase of intangible assets and property, plant, and equipment | –528 | –595 |
| Payments of lease liabilities | –213 | –266 |
| Free cash flow | 5,031 | 3,423 |
| Net cash flows from investing activities – continuing operations | –618 | –2,718 |
| Net cash flows from financing activities – continuing operations | –3,180 | –6,797 |
18/25
| Quarterly Statement Q3 2024 |
(F) Non-IFRS Adjustments – Actuals and Estimates
| € millions, unless otherwise stated | Estimated Amounts for Full Year 2024 | Q3 2024 | Q1–Q3 2024 | Q3 2023 | Q1–Q3 2023 |
| Profit (loss) before tax from continuing operations (IFRS) | 2,151 | 2,557 | 1,761 | 3,532 | |
| Adjustment for acquisition-related charges | 320–400 | 90 | 256 | 80 | 257 |
| Adjustment for restructuring | approximately €3 bn | –52 | 2,821 | –36 | 221 |
| Adjustment for regulatory compliance matter expenses | -8 | –8 | –8 | 0 | 170 |
| Adjustment for gains and losses from equity securities, net | N/A1 | –24 | –147 | 50 | 91 |
| Profit (loss) before tax from continuing operations (non-IFRS) | 2,157 | 5,479 | 1,855 | 4,271 |
1 Due to the uncertainty and potential variability of gains and losses from equity securities, we cannot provide an estimate for the full year without unreasonable efforts. This item could however have a material impact on our non-IFRS measures below operating profit.
(G) Non-IFRS Operating Expense Adjustments by Functional Areas
| € millions | Q3 2024 | Q3 2023 | ||||||||
| IFRS | Acquisition- Related | Restructuring | RCM1 | Non-IFRS | IFRS | Acquisition-Related | Restructuring | RCM1 | Non-IFRS | |
| Cost of cloud | –1,167 | 25 | 0 | 0 | –1,142 | –946 | 10 | 0 | 0 | –937 |
| Cost of software licenses and support | –306 | 0 | 0 | 0 | –306 | –321 | 4 | 0 | 0 | –318 |
| Cost of services | –786 | 0 | 0 | 0 | –785 | –840 | 0 | 0 | 0 | –840 |
| Research and development | –1,568 | 0 | 0 | 0 | –1,568 | –1,515 | 2 | 0 | 0 | –1,513 |
| Sales and marketing | –2,098 | 59 | 0 | –8 | –2,047 | –2,105 | 64 | 0 | 0 | –2,041 |
| General and administration | –361 | 6 | 0 | 0 | –356 | –327 | 0 | 0 | 0 | –327 |
| Restructuring | 52 | 0 | –52 | 0 | 0 | 36 | 0 | –36 | 0 | 0 |
| Other operating income/expense, net | –22 | 0 | 0 | 0 | –22 | –3 | 0 | 0 | 0 | –3 |
| Total operating expenses | –6,256 | 90 | –52 | –8 | –6,226 | –6,022 | 80 | –36 | 0 | –5,978 |
1 Regulatory Compliance Matters
| € millions | Q1–Q3 2024 | Q1–Q3 2023 | ||||||||
| IFRS | Acquisition- Related | Restructuring | RCM1 | Non-IFRS | IFRS | Acquisition-Related | Restructuring | RCM1 | Non-IFRS | |
| Cost of cloud | –3,381 | 49 | 0 | 0 | –3,332 | –2,843 | 31 | 0 | 0 | –2,812 |
| Cost of software licenses and support | –943 | 0 | 0 | 0 | –943 | –1,008 | 26 | 0 | 0 | –982 |
| Cost of services | –2,485 | 0 | 0 | 0 | –2,484 | –2,557 | 1 | 0 | 0 | –2,557 |
| Research and development | –4,839 | 3 | 0 | 0 | –4,835 | –4,653 | 6 | 0 | 0 | –4,647 |
| Sales and marketing | –6,594 | 189 | 0 | –8 | –6,413 | –6,562 | 193 | 0 | 170 | –6,199 |
| General and administration | –1,057 | 14 | 0 | 0 | –1,043 | –997 | 1 | 0 | 0 | –996 |
| Restructuring | –2,821 | 0 | 2,821 | 0 | 0 | –221 | 0 | 221 | 0 | 0 |
| Other operating income/expense, net | –31 | 0 | 0 | 0 | –31 | 0 | 0 | 0 | 0 | 0 |
| Total operating expenses | –22,150 | 256 | 2,821 | –8 | –19,081 | –18,842 | 257 | 221 | 170 | –18,193 |
1 Regulatory Compliance Matters
19/25
| Quarterly Statement Q3 2024 |
If not presented in a separate line item in our income statement, the restructuring expenses would break down as follows:
| € millions | Q3 2024 | Q1–Q3 2024 | Q3 2023 | Q1–Q3 2023 |
| Cost of cloud | 1 | –94 | 9 | 2 |
| Cost of software licenses and support | 0 | –80 | 2 | –9 |
| Cost of services | 8 | –525 | 8 | –26 |
| Research and development | 12 | –1,088 | –4 | –44 |
| Sales and marketing | 12 | –894 | 22 | –128 |
| General and administration | 18 | –141 | –1 | –16 |
| Restructuring expenses | 52 | –2,821 | 36 | –221 |
20/25
| Quarterly Statement Q3 2024 |
Disaggregations
(H) Segment Reporting
SAP operates on a consolidated basis as one operating segment. For further details, see Note (C.1) “Results of Segments” of our Consolidated Half-Year Financial Statements 2024.
For more information about SAP’s operating performance, see the Reconciliation from Non-IFRS Numbers to IFRS Numbers section.
(I) Revenue by Region (IFRS and Non-IFRS)
(I.1) Revenue by Region (IFRS and Non-IFRS) – Quarter
| € millions | Q3 2024 | Q3 2023 | ∆ in % | |||
| Actual currency | Currency Impact | Constant Currency | Actual currency | Actual currency | Constant Currency | |
| Cloud Revenue by Region | ||||||
| EMEA | 1,742 | –2 | 1,740 | 1,352 | 29 | 29 |
| Americas | 1,989 | 35 | 2,024 | 1,678 | 19 | 21 |
| APJ | 620 | 10 | 630 | 442 | 40 | 43 |
| Cloud revenue | 4,351 | 43 | 4,394 | 3,472 | 25 | 27 |
| Cloud and Software Revenue by Region | ||||||
| EMEA | 3,370 | –4 | 3,366 | 3,010 | 12 | 12 |
| Americas | 2,982 | 55 | 3,037 | 2,696 | 11 | 13 |
| APJ | 1,077 | 18 | 1,094 | 973 | 11 | 12 |
| Cloud and software revenue | 7,429 | 69 | 7,497 | 6,679 | 11 | 12 |
| Total Revenue by Region | ||||||
| Germany | 1,282 | 0 | 1,283 | 1,212 | 6 | 6 |
| Rest of EMEA | 2,574 | –4 | 2,569 | 2,280 | 13 | 13 |
| Total EMEA | 3,856 | –4 | 3,852 | 3,492 | 10 | 10 |
| United States | 2,739 | 27 | 2,766 | 2,506 | 9 | 10 |
| Rest of Americas | 679 | 34 | 713 | 651 | 4 | 9 |
| Total Americas | 3,418 | 61 | 3,479 | 3,157 | 8 | 10 |
| Japan | 357 | 13 | 370 | 297 | 20 | 25 |
| Rest of APJ | 839 | 7 | 845 | 798 | 5 | 6 |
| Total APJ | 1,195 | 20 | 1,215 | 1,095 | 9 | 11 |
| Total revenue | 8,470 | 76 | 8,546 | 7,744 | 9 | 10 |
21/25
| Quarterly Statement Q3 2024 |
(I.2) Revenue by Region (IFRS and Non-IFRS) – Year-to-Date
| € millions | Q1–Q3 2024 | Q1–Q3 2023 | ∆ in % | |||
| Actual Currency | Currency Impact | Constant Currency | Actual Currency | Actual Currency | Constant Currency | |
| Cloud Revenue by Region | ||||||
| EMEA | 4,972 | –13 | 4,959 | 3,810 | 31 | 30 |
| Americas | 5,751 | 39 | 5,790 | 4,873 | 18 | 19 |
| APJ | 1,710 | 66 | 1,776 | 1,282 | 33 | 38 |
| Cloud revenue | 12,433 | 92 | 12,524 | 9,965 | 25 | 26 |
| Cloud and Software Revenue by Region | ||||||
| EMEA | 9,695 | –22 | 9,673 | 8,670 | 12 | 12 |
| Americas | 8,757 | 60 | 8,817 | 7,979 | 10 | 11 |
| APJ | 3,111 | 124 | 3,235 | 2,892 | 8 | 12 |
| Cloud and software revenue | 21,563 | 162 | 21,725 | 19,542 | 10 | 11 |
| Total Revenue by Region | ||||||
| Germany | 3,802 | 0 | 3,802 | 3,495 | 9 | 9 |
| Rest of EMEA | 7,377 | –27 | 7,351 | 6,619 | 11 | 11 |
| Total EMEA | 11,180 | –27 | 11,153 | 10,113 | 11 | 10 |
| United States | 8,108 | 27 | 8,136 | 7,480 | 8 | 9 |
| Rest of Americas | 2,038 | 37 | 2,075 | 1,884 | 8 | 10 |
| Total Americas | 10,146 | 64 | 10,211 | 9,364 | 8 | 9 |
| Japan | 1,018 | 91 | 1,109 | 913 | 11 | 21 |
| Rest of APJ | 2,454 | 49 | 2,503 | 2,348 | 5 | 7 |
| Total APJ | 3,472 | 140 | 3,612 | 3,261 | 6 | 11 |
| Total revenue | 24,798 | 178 | 24,976 | 22,739 | 9 | 10 |
22/25
| Quarterly Statement Q3 2024 |
(J) Employees by Region and Functional Areas
| Full-time equivalents | 09/30/2024 | 09/30/2023 | ||||||
| EMEA | Americas | APJ | Total | EMEA | Americas | APJ | Total | |
| Cloud and software | 4,510 | 4,256 | 4,592 | 13,357 | 4,150 | 4,193 | 4,181 | 12,523 |
| Services | 8,394 | 4,686 | 5,503 | 18,582 | 8,124 | 5,044 | 5,502 | 18,669 |
| Research and development | 18,422 | 5,623 | 12,729 | 36,774 | 17,952 | 5,907 | 12,698 | 36,557 |
| Sales and marketing | 12,078 | 9,742 | 5,149 | 26,969 | 11,796 | 10,166 | 5,311 | 27,272 |
| General and administration | 3,781 | 1,796 | 1,301 | 6,878 | 3,518 | 1,772 | 1,305 | 6,595 |
| Infrastructure | 2,964 | 1,156 | 903 | 5,023 | 2,786 | 1,244 | 849 | 4,878 |
| SAP Group (09/30) | 50,149 | 27,257 | 30,177 | 107,583 | 48,325 | 28,324 | 29,846 | 106,495 |
| Thereof acquisitions1 | 413 | 414 | 86 | 912 | 7 | 0 | 0 | 7 |
| SAP Group (nine months' end average) | 49,475 | 27,389 | 29,819 | 106,683 | 47,967 | 28,170 | 29,487 | 105,624 |
1 Acquisitions closed between January 1 and September 30 of the respective year.
23/25
| Quarterly Statement Q3 2024 |
Other Disclosures
(K) Share-Based Payment
SAP’s share-based payment expenses included in our non-IFRS operating expenses break down as follows:
| € millions | Q3 2024 | Q1–Q3 2024 | Q3 2023 | Q1–Q3 2023 |
| Cost of cloud | –31 | –104 | –23 | –70 |
| Cost of software licenses and support | –9 | –31 | –9 | –29 |
| Cost of services | –78 | –269 | –88 | –287 |
| Research and development | –169 | –572 | –163 | –534 |
| Sales and marketing | –199 | –675 | –191 | –626 |
| General and administration | –49 | –164 | –36 | –132 |
| Share-based payment expenses | –535 | –1,815 | –510 | –1,677 |
Additionally, in the third quarter of 2024 SAP reduced its expenses of €17 million (Q3/2023: €0 million) relating to accelerated share-based payment expenses triggered by the transformation program. In the first nine months of 2024 expenses amounting to €172 million (Q1-Q3/2023: €0 million) have been recognized. These share-based payment expenses are classified as restructuring expenses in SAP’s consolidated income statements.
Associated share-based payments in the first nine months of 2024 amounted to €143 million (Q1-Q3/2023: €0 million) and are classified as a decrease in provisions and other liabilities in SAP’s consolidated statements of cash flows.
(L) Restructuring
The vast majority of the restructuring expenses and related payments recognized in the first nine months of 2024 relate to the company-wide transformation program that SAP announced in the first quarter to further increase its focus on key strategic growth areas, in particular business AI. SAP is transforming its operational setup to capture organizational synergies and AI driven efficiencies, and to prepare the company for highly scalable future revenue growth. The restructuring is intended to ensure that SAP’s skillset and resources continue to meet future business needs. Restructuring expenses primarily include employee-related benefits such as severance payments and accelerated share-based payment expenses triggered by the transformation program (for more information on recognition and measurement of share-based payment programs, see Notes to the Consolidated Half-Year Financial Statements 2024, Note B.3).
For the movement of the restructuring provision in the first nine months of 2024, please refer to the table below:
| € millions | Restructuring Provision |
| Opening balance as at 1/1/2024 | 37 |
| Additions | 2,821 |
| Utilizations | –673 |
| Transfer to share-based compensation liability | –110 |
| Ending balance as at 9/30/2024 | 2,075 |
For a reconciliation of the utilization of the restructuring provision to the cash outflow related to restructuring, please refer to the table below:
| € millions | Q1–Q3 2024 |
| Utilizations | 673 |
| Payout of share-based compensation | 143 |
| Time account payout | 13 |
| Net cash outflow | 829 |
24/25
| Quarterly Statement Q3 2024 |
(M) Business combinations
On June 5, 2024, SAP announced its intention to acquire 100% of WalkMe Ltd. (“WalkMe”), a leader in Digital Adoption Platforms.
The transaction closed on September 12, 2024, following satisfaction of regulatory and other approvals. The acquisition is expected to further expand SAP’s business transformation portfolio. WalkMe’s solutions help companies navigate ongoing technological change by providing users with advanced guidance and automation capabilities. The operating results, as well as the assets and liabilities (provisional values) are reflected in our consolidated financial statements starting from that date. The initial consideration transferred amounted to approximately €1.3 billion.
As the WalkMe acquisition closed shortly before September 30, 2024, we are still in the process of identifying and measuring the WalkMe assets and liabilities. Thus, the accounting for the WalkMe acquisition is preliminary. This primarily relates to intangible assets as well as tax assets and liabilities, but also to certain acquisition accounting-related matters such as the consideration transferred and certain accounting alignments.
In the third quarter of 2024, the contribution of WalkMe to revenue was approximately €14 million, to operating profit approximately €-14 million (IFRS) and approximately €-8 million (non-IFRS).
25/25