SAP SE, a leading enterprise software company, has reported its financial results for the third quarter, ending on September 30, 2023, showcasing strong performance and a continued focus on cloud-based services. The company’s highlights for Q3 include a 16% growth in cloud revenue, a 19% increase in the current cloud backlog (reaching €12.3 billion), and a 21% surge in IFRS cloud gross profit. These results reflect SAP’s commitment to expanding its cloud offerings and improving profitability in the cloud sector.
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Moreover, the non-IFRS cloud gross profit also showed remarkable growth, increasing by 21% and rising to 28% at constant currencies. This expansion of cloud gross margins is a testament to SAP’s dedication to strengthening its presence in the cloud services market.
SAP’s operating profits have experienced notable increases as well, with IFRS operating profit up 11% and non-IFRS operating profit up 10%. When adjusted for constant currencies, these figures demonstrate a more significant rise, with non-IFRS operating profit increasing by 16%. These results emphasize the company’s ability to achieve growth and profitability amidst challenging macroeconomic conditions and increasing geopolitical tensions.\
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SAP’s performance in the third quarter reaffirms the company’s outlook for the year 2023, underscoring its commitment to navigating a dynamic business landscape successfully.
SAP’s CEO, Christian Klein, expressed confidence in the company’s ongoing transformation, highlighting the accelerated growth in the cloud across their portfolio and the expansion of cloud gross margins. He also emphasized SAP’s resilience in the face of global economic challenges and geopolitical complexities.
CFO Dominik Asam noted that the strong Q3 results demonstrate the company’s robust execution and business resilience. Despite ongoing macroeconomic headwinds, SAP maintains a balanced approach to growth and profitability, with a goal of achieving double-digit operating profit growth by the end of the year. This approach reflects the company’s commitment to both enhancing its services and delivering value to its stakeholders.