SAP has reported a total revenue of €8.28bn for the second quarter of 2024 (Q2 2024), a 10% increase compared to €7.55bn for the same quarter of the previous year.
In the previous quarter, that is Q1 2024, the German software company posted an overall revenue of €8bn.
SAP’s diluted earnings per share (EPS) in the reported first quarter ended 30 June 2024 were €0.75, an increase of 22%, compared to €0.62 reported in the same quarter of 2023.
The company’s profit after tax from continuing operations for Q2 2024 was up by 27% to €918m, compared to €724m in Q2 2023.
SAP has witnessed a decrease of 11% in its operating profit for the second quarter of 2024 to €1.22bn, compared to the €1.37bn in the corresponding quarter of the previous year.
The decrease in operating profit for the reported quarter is a result of its restructuring expenses of €600m as part of a company-wide transformation programme announced in January 2024.
SAP’s €2bn restructuring programme has been expected to impact nearly 8,000 positions as the company plans to focus on key strategic growth areas including business artificial intelligence (AI).
The German software major intends to further intensify its focus on key strategic growth areas in 2024. The restructuring programme is anticipated to be completed in early 2025.
The company’s free cash flow in Q2 2024 has increased by 114% to €1.3bn.
SAP earned €4.15bn in revenues from its cloud business for Q2 2024, an increase of 25% compared to €3.31bn in the same quarter of 2023.
The German company’s cloud and software revenue had a 10% increase for the reported quarter at €7.17bn, compared to €6.5bn in Q2 2023.
SAP CEP Christian Klein said: “Our cloud growth momentum remained strong in Q2, with Business AI enabling many deals. We continue to execute on our transformation with great discipline, leading to an increase in our operating profit ambition for 2025.
“At the same time, we continue to invest into our transformation to be the leader in Business AI. Given our progress and strong pipeline, we are confident to achieve accelerating topline growth through 2027.”
In April this year, SAP unveiled AI advancements in its supply chain solutions to enhance productivity, efficiency, and precision in manufacturing.
