SAP SE SAP reported third-quarter 2024 non-IFRS earnings per share (EPS) of €1.23 ($1.35), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $1.31.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

SAP achieved significant growth in its cloud revenues, especially Cloud ERP Suite, and progress in Business AI, with key innovations like SAP Knowledge Graph gaining traction. The company reported total revenues on a non-IFRS basis of €8.47 billion ($9.309 billion), which increased 9% year over year (up 10% at constant currency or cc). The Zacks Consensus Estimate was pegged at $9.263 billion.

In response to the results, SAP’s shares were up 3.5% in the pre-market trading on Oct. 22. Shares of the company have gained 73.6% in the past year compared with the  sub-industry's growth of 29.3%.

Image Source: Zacks Investment Research

Cloud Results

The current cloud backlog — a key indicator of go-to-market success in cloud business — surged 25% (up 29% at cc) to €15.38 billion. Synergies from the acquisition of WalkMe resulted in the upside, with a nearly 1%-point contribution to the growth rate.

SAP SE Price, Consensus and EPS Surprise

SAP SE price-consensus-eps-surprise-chart | SAP SE Quote

On a non-IFRS basis, the Cloud and software segment (87.7% of total revenues) registered revenues of €7.43 billion, rising 11% year over year (up 12% at cc). 

Cloud revenues were €4.35 billion, up 25% year over year on a non-IFRS basis (up 27% at cc). A major driver behind the cloud growth was Cloud ERP Suite revenues, which jumped 34% to €3.64 billion (up 36% at cc). SAP’s cloud business gained robust momentum across Brazil, Chile, Germany, Italy, India, Japan and Spain. It remained strong in the United States, Saudi Arabia and China.

Software licenses and support revenues totaled €3.08 billion, which decreased 4% (down 3% at cc) year over year. Non-IFRS software license revenues of €0.28 billion declined 15% (down 14% at cc) year over year.

Services business (12.3% of total revenues) posted revenues of €1.04 billion, down 2% year over year (both at nominal and cc basis).

Expanding Clientele Bodes Well

Rise with SAP solution was adopted by clients, including eBay, JAPAN AIRLINES, Roche, Rolls-Royce Power Systems, B3, CAF - the Development Bank of Latin America and the Caribbean, Chalhoub Group, Cochlear, Dakota Provisions, E.ON, Energy Queensland, Equinor, FairPrice Group, Gestamp Servicios, Lands' End, Mercado Libre, Mondelez International, OLAM Global Agri, Schwarz Group, Siemens Healthineers, Southern Glazer's Wine & Spirits, SRAM, Tetra Pak, ZEON Corporation and Zwilling.

In the reported quarter, Clorox, CPKC Railways, J.M. VOITH, KAESER KOMPRESSOREN, Nvidia, Panasonic Energy of North America and VistaPrint went live on SAP S/4HANA Cloud.

Major global brands across various industries, including 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, adopted SAP’s solutions.

The "GROW with SAP" solution, which focuses on aiding smaller businesses to adopt cloud ERP solutions quickly and efficiently, saw notable wins from companies like Dawn Foods, DXC Technology, Gainsight, L'OCCITANE Group, Mistral AI, Palmer Candy, The Pool Tile Company and SCHURTER Holding.