Financial Performance
All results are based on "continuing operations". Growth rates are year-over-year, at actual currencies unless otherwise noted.
Growth
Strong customer demand drives growth
Despite macroeconomic uncertainties and geopolitical tensions, all SAP regions contributed positively to the excellent results in 2023. The Group's continuous execution of the corporate strategy showed our unwavering commitment to the mid-term ambition.
The continuous demand from our customers and their ambition to digitally transform their businesses in the Cloud drove our strong revenue growth in 2023.
Profitability
The second phase of our Cloud transformation has started
After two years of significant investments to accelerate our transition to the cloud, SAP moved into the second phase of its cloud transformation in 2023. Leveraging efficiencies and economies of scale, we moved past the tipping point towards positive profitability (non-IFRS).
The positive operating cash flow development was driven by profitability and effectiveness of working capital, though higher taxes and restructuring costs impacted free cash flow.
Performance versus Outlook
We kept our promise for 2023
With two outlook updates throughout the year, SAP showed confidence in its business model and long-term growth trajectory. All key outlook metrics were met or exceeded in fiscal year 2023.
In particular, operating profit (non-IFRS) returned to double-digit growth as expected, harvesting the benefits of the investments of the past two years.
Shareholder Return
SAP shares are more valuable than ever
Driven by the company’s excellent results and an overall positive market mood, particularly for tech companies, SAP’s stock soared in 2023. Towards the end of the year, SAP’s share reached a new all-time high at €148.18. Over the course of 2023 the stock price increased 43.2% percent in total. SAP has been among the few German companies in the Top 100 most valuable companies globally.
With a proposed dividend of €2.20 for fiscal year 2023, we further enhanced our total shareholder return and underscored SAP as an attractive investment.
SAP Stock in Comparison to Major Indices
January 2, 2023 to December 29, 2023