Investor Relations Factsheet
Last update: October 21, 2024
A comprehensive collection of key performance metrics, showing progress and development of our operations at a glance.
All results are Non-IFRS, based on "continuing operations". Growth rates are year-over-year, at constant currencies, if not otherwise stated.
Order Entry, Backlog, and Revenues
The transition in our revenue structure from software licenses revenue to cloud revenue is largely complete. By 2025 we expect cloud revenue to be approx. 60% of our total revenue. The Current Cloud Backlog, showing order entry growth and the contracted expected cloud revenue of the upcoming 12 months, continues its remarkable trajectory. It builds a solid foundation for future top line results.
The new Cloud ERP Suite metric references the portfolio of Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) solutions that are either part of, or very tightly integrated with core ERP, and that are also included in key commercial packages, such as RISE with SAP.
Current details on quarterly topline performance can be found in the Recent Results page.
Profitability, Operating Profit, and Earnings per Share
Since we showed the successful execution of our cloud transformation strategy, reaching a tipping point in profitability in Q4 2022, we reported growing operating profit and operating margin. Entering the next phase of transformation, and after the massive investment phase from 2020 to 2022, SAP is well on track to show sustained growth and financial performance in the coming years.
Note:
The operating profit and operating margin figures starting 2022 are based on the updated non-IFRS definition, effective Q1 2024. They include stock-based compensation expenses and exclude gains/losses from equity investments. Further details about this update as well as historical data can be found on the Reporting Framework page.
More details on quarterly bottomline performance can be found in the Recent Results page.
Cash Flows and Liquidity
Our primary source of cash, cash equivalents, and current investments is funds generated from our business operations. In recent years, we were able to repay additional debt within a short period of time due to our persistently strong free cash flow. We believe that our liquid assets combined with our undrawn credit facilities are sufficient to meet our operating financing needs. The divestiture of Qualtrics in H1 2023 resulted in a significant cash inflow, hence a positive net-liquidity situation for the Group in 2023.
Find more details about our outstanding debt and maturity of bonds on the Fixed Income page.
Our Mid-Term Ambition
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.
The 2024 outlook for cloud and software revenue, operating profit, and free cash flow was updated with the Q3 results disclosure on October 21, 2024.
SAP 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%).
Total revenue is estimated to grow to more than €37.5bn in 2025.
The non-IFRS operating profit ambition for 2025 was estimated at € 10.2 billion due to additional expected efficiency gains from the transformation program.
The 2025 Free cash flow ambition of approximately €8.0bn includes an anticipated mid-triple-digit million Euro restructuring payout associated with the 2024 transformation program.
The 2025 ambition is based on an exchange rate of 1.10 USD per EUR.
More details on SAP's most recent ambition update can be found in the Recent results page.
Equity and Ratings
The primary objective of our capital structure management is to maintain a strong financial profile for investor, creditor, and customer confidence, and to support the growth of our business. We seek to maintain a capital structure that will allow us to cover our funding requirements through the capital markets at reasonable conditions, and in so doing, ensure a high level of independence, confidence, and financial flexibility. More information about our outstanding debt, bonds, and maturities can be found on the Fixed Income pages.
On July 4, 2023, SAP achieved a long-term „A+“ issuer credit rating by Standard & Poor’s (outlook stable). In addition, Moody's upgraded our credit rating to "A1" (outlook stable) on March 20, 2024.
A+
Standard & Poor's
Credit rating
Outlook: stable
A1
Moody's
Credit rating
Outlook: stable
Dividends
SAP stands for a progressive dividend policy
SAP has paid a dividend to shareholders since its IPO in 1988. This has never been reduced and has generally been increased continuously. For the fiscal year 2023, a dividend of €2.20 (+ 7.3%) per share was paid. The payout ratio amounted to 43% (€ 2.564 billion).
The dividend policy was updated on June 5, 2024.
The new policy provides for a dividend payout of at least 40% of non-IFRS profits after tax from continuing operations (previously: at least 40% of IFRS profits after tax).
Historical dividend figures and further information can be found on the Dividend page;
Non-Financial Performance
AAA
MSCI
ESG rating
Fiscal year 2023
Prime rating
(1st Decile)
ISS ESG
Fiscal year 2023
1.8M tons CO2e
Gross GHG Emissions
Ambition: Net Zero by 2030
(across value chain)