Enterprise software major SAP has reported 9 percent rise in revenue to €8.47 billion during the third-quarter of 2024.
Cloud backlog grew by 25 percent to €15.38 billion.
Cloud revenue increased by 25 percent to €4.35 billion.
Cloud ERP Suite revenue rose by 34 percent to €3.64 billion.
Software and Services:
Software licenses revenue declined by 15 percent to €0.28 billion.
Cloud and software revenue overall increased by 11 percent to €7.43 billion.
Services revenue fell by 2 percent to €1.04 billion.
AI and Restructuring Focus:
SAP is focusing on business AI and streamlining operations for scalability.
The company is undergoing a restructuring program expected to conclude in early 2025, impacting 9,000 to 10,000 jobs, with many through voluntary leave and re-skilling.
Restructuring expenses in the first nine months of 2024 were €2.8 billion, with total estimated expenses at around €3 billion.
Customer Wins:
Notable customers adopted “RISE with SAP” included B3, CAF – the Development Bank of Latin America and the Caribbean, Chalhoub Group, Cochlear, Dakota Provisions, E.ON, eBay, Energy Queensland, Equinor, FairPrice Group, Gestamp Servicios, JAPAN AIRLINES, Lands’ End, Mercado Libre, Mondelez International, OLAM Global Agri, Roche, Rolls-Royce Power Systems, Schwarz Group, Siemens Healthineers, Southern Glazer’s Wine & Spirits, SRAM, Tetra Pak, ZEON Corporation, and Zwilling.
Companies like Clorox, CPKC Railways, J.M. VOITH, KAESER KOMPRESSOREN, Nvidia, Panasonic Energy of North America, and VistaPrint went live on SAP S/4HANA Cloud.
Several companies, including Dawn Foods, DXC Technology, Gainsight, L’OCCITANE Group, Mistral AI, Palmer Candy, The Pool Tile Company, and SCHURTER Holding, opted for “GROW with SAP,” a solution designed to help businesses quickly and predictably implement cloud ERP.
Key customer wins across SAP’s broader solution portfolio featured organizations such as 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. Additionally, Breakthru Beverage Group, Cox Automotive Australia, and Heartland Dental successfully deployed SAP solutions.
Acquisition: SAP completed its acquisition of WalkMe Ltd., contributing to its cloud growth.
Leadership Changes:
Scott Russell and Julia White left the SAP Executive Board as of August 31, 2024.
Dr.-Ing. Juergen Mueller, CTO, left the Executive Board on September 30, 2024.
SAP’s performance was especially strong in regions like APJ and EMEA, with notable growth in Brazil, Germany, and Japan.
