SAP Reports Strong Q3 2023 Results with 4% Rise in Revenue

SAP, the global leader in enterprise software solutions, has announced its financial results for the third quarter of 2023, showcasing impressive growth and robust performance in its cloud-based services.
SAP revenue Q3 2023Walldorf, Germany-based SAP reported total revenue of €7,744 million for the third quarter, marking a significant 4 percent increase. Notably, SAP’s cloud revenue played a pivotal role in this achievement, surging by an impressive 16 percent to reach €3,472 million.

SAP’s cloud revenue milestone was attributed to the expansion of its software-as-a-service (SaaS) and platform-as-a-service (PaaS) portfolio, along with the continued success of its premium enterprise resource software platform, S/4 HANA. The combined SaaS and PaaS portfolio experienced a notable 19 percent growth, and SAP S/4HANA cloud revenue recorded an outstanding 67 percent increase to €914 million.

Christian Klein, CEO of SAP, in its earnings report expressed his satisfaction with the results, stating, “Our strong focus on innovation, including our latest SAP Business AI capabilities, ensure SAP’s continued resiliency in the face of tough macroeconomic conditions and increasing geopolitical tensions.”

For the full year, SAP has reaffirmed its cloud revenue outlook in the range of €14 billion to €14.2 billion. Looking ahead to 2023, SAP continues to expect cloud revenue in the range of €14.0 billion to €14.2 billion, a substantial increase from the previous year’s €11.43 billion. Additionally, SAP anticipates cloud and software revenue to reach €27.0 billion to €27.4 billion in 2023, surpassing the 2022 figure of €25.39 billion.

The company also reported several significant customer wins during the third quarter. Customers such as ADAC, Alnatura, BC Hydro, Bobst Mex, Constellium, Graybar, Hitachi Zosen Corporation, KAESER KOMPRESSOREN, LG Electronics, LG Energy Solution, PUMA, Siemens Healthineers, and the University of Leeds chose “RISE with SAP” to facilitate their comprehensive business transformations.

Moreover, companies including BMW Group, Celltrion Healthcare, City of Vancouver, Schneider Electric, Toll Group, and UPL Limited went live on SAP S/4HANA Cloud in the third quarter. Others such as Atria, elobau, Leanin’ Tree, Northstar Clean Technologies, PERSSA, Phoenix Global, Tait International, and Ziegler Holding adopted “GROW with SAP,” a new offering aimed at helping midsize customers transition to cloud ERP with speed, predictability, and continuous innovation.

SAP’s customer base was further enriched with key wins across its solution portfolio. Companies like Accenture, Adobe, BVG (Berlin public transport), Ecovacs, freenet DLS, Fressnapf, Heidelberger Druckmaschinen, Hyundai Motor Company / Kia, Jollibee Foods Corporation, Lenovo, RICOH, Salling Group, and thyssenkrupp Steel Europe chose SAP solutions for their business needs. Additionally, Ducati Motor Holding, Gilead Sciences, Hunkemöller, The KaDeWe Group, Swiss Federal Railways, and SCOTT Sports successfully went live on SAP solutions.

SAP’s cloud revenue performance for the third quarter was particularly strong in the Asia-Pacific and Japan (APJ) and Europe, Middle East, and Africa (EMEA) regions, with solid performance in the Americas. Outstanding cloud revenue growth was reported in Brazil, India, and the Netherlands, while Canada, China, France, Germany, Japan, and Switzerland also delivered strong results.

SAP’s continued focus on innovation and commitment to delivering exceptional solutions to its customers are evident in these impressive results. The company remains on a trajectory of growth and success, even in the face of challenging economic conditions and geopolitical uncertainties.