SAP SE (SAP) Misses Q2 EPS by 5c; offers outlook

SAP SE (NYSE: SAP) reported Q2 EPS of EUR1.10, EUR0.05 worse than the analyst estimate of EUR1.15. Revenue for the quarter came in at EUR8.29 billion versus the consensus estimate of EUR8.9 billion.

OUTLOOK

SAP continues to expect for 2024:

€17.0 – 17.3 billion cloud revenue at constant currencies (2023: €13.66 billion), up 24% to 27% at constant currencies.
€29.0 – 29.5 billion cloud and software revenue at constant currencies (2023: €26.92 billion), up 8% to 10% at constant currencies.
€7.6 – 7.9 billion non-IFRS operating profit at constant currencies (2023: €6.51 billion), up 17% to 21% at constant currencies.
Free cash flow of approximately €3.5 billion (2023: €5.09 billion).
An effective tax rate (non-IFRS) of approximately 32% (2023: 30.3%)

By 2025, SAP now expects:

Non-IFRS operating profit of approximately €10.2 billion (previously: approximately €10 billion).

SAP continues to expect:

Cloud revenue of more than €21.5 billion.
Total revenue of more than €37.5 billion.
Non-IFRS cloud gross profit of approximately €16.2 billion.
Free cash flow of approximately €8.0 billion (now including an anticipated mid-triple-digit million Euro restructuring payout in 2025 associated with the 2024 transformation program).
A share of more predictable revenue of approximately 86%.

For earnings history and earnings-related data on SAP SE (SAP) click here.

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