SAP

SAP Q4 2024 Earnings

Reported Jan 29, 2025 at 6:01 AM ET · SEC Source

Q4 24 EPS

$1.40

MISS 6.04%

Est. $1.49

Q4 24 Revenue

$9.38B

vs S&P Since Q4 24

-57.8%

TRAILING MARKET

SAP -38.1% vs S&P +19.7%

Full Year 2024 Results

FY 24 EPS

$4.53

FY 24 Revenue

$34.18B

Market Reaction

Did SAP Beat Earnings? Q4 2024 Results

SAP closed out Q4 2024 with a mixed but broadly constructive report, posting earnings per share of $1.40 against a consensus estimate of $1.49, a miss of 6.04%, even as revenue climbed 10.7% year over year to $9.38 billion. The headline earnings shor… Read more SAP closed out Q4 2024 with a mixed but broadly constructive report, posting earnings per share of $1.40 against a consensus estimate of $1.49, a miss of 6.04%, even as revenue climbed 10.7% year over year to $9.38 billion. The headline earnings shortfall was largely explained by $323 million in restructuring charges tied to the company's ongoing 2024 transformation program, which weighed on IFRS profitability while the underlying cloud business accelerated sharply. Cloud revenue surged 27% to $4.71 billion in the quarter, with CEO Christian Klein noting that half of all Q4 cloud order entry incorporated AI capabilities, a signal of deepening enterprise adoption of SAP's Business AI offerings. Current cloud backlog expanded 32% to $18.08 billion, providing strong forward visibility. Looking ahead, SAP guided 2025 cloud revenue to $21.60 billion-$21.90 billion, representing growth of 26-28% at constant currencies, alongside non-IFRS operating profit of $10.30 billion-$10.60 billion, up 26-30%, suggesting confidence that restructuring headwinds are largely behind it.

Key Takeaways

  • Cloud ERP Suite revenue growth of 35% in Q4, driven by SAP S/4HANA Cloud adoption
  • Current cloud backlog grew 32% to €18.1 billion providing strong forward revenue visibility
  • Total cloud backlog of €63.3 billion, up 43%
  • Disciplined execution of 2024 transformation program improving operating leverage
  • Share of more predictable revenue increased to 81% in Q4
  • Strong software licenses and support business performance
  • AI integration driving cloud order entry with half of Q4 orders including AI
24/7 Wall St

SAP YoY Financials

Q4 2024 vs Q4 2023, source: SEC Filings

24/7 Wall St

SAP Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 24 Q2 26
24/7 Wall St

SAP Revenue by Geography

With YoY comparisons, source: SEC Filings

Q4 24 Q2 26

“Q4 was a strong finish to the year, with half of our cloud order entry including AI. Looking at the full year, we exceeded our cloud goals, accelerating cloud revenue and current cloud backlog growth against a much larger base. Total cloud backlog now stands at €63 billion, up 40%. Revenue growth has returned to double-digits. Looking ahead, our strong position in data and Business AI gives us additional confidence that we will accelerate revenue growth through 2027.”

— Christian Klein, Q4 2024 Earnings Press Release