Unless otherwise stated, all figures in this statement are based on SAP group results from continuing operations.
- Cloud revenue up 24% and up 22% at constant currencies, up 1 percentage point sequentially. S/4HANA cloud revenue up 77% and up 75% at constant currencies
- Current cloud backlog up 25%, both at nominal and constant currencies, a sequential growth improvement of 1 percentage point
- IFRS cloud gross profit up 28%, non-IFRS cloud gross profit up 28% and up 27 % at constant currencies fueling double-digit non-IFRS operating profit growth
- IFRS operating profit down 45%, non-IFRS operating profit up 12% and up 12% at constant currencies
- 2023 outlook updated to reflect the expected Qualtrics divestiture. SAP reaffirms outlook for continuing operations including anticipated acceleration of topline and operating profit growth
- In Q1 2023, the Qualtrics consolidated group (“Qualtrics”) has been classified as discontinued operations under IFRS 5. Consequently, the contribution from Qualtrics is not included in the reporting of SAP’s continuing operations. See section (N) Discontinued Operations. For more information on changes in SAP’s presentation and disclosures please see recorded info session https://www.sap.com/investors/en/reports/reporting-framework.html.
WALLDORF, Germany, April 21, 2023 /PRNewswire/ — SAP SE (NYSE: SAP) today announced its financial results for the first quarter ended March 31, 2023.
Christian Klein, CEO: “We have entered a powerful new phase in our strategic transformation, with topline and bottom-line results clearly demonstrating the tipping point we passed in the fourth quarter 2022. Our cloud momentum continues at a fast pace which is contributing to our strong revenue and double-digit non-IFRS operating profit growth this quarter.”
Dominik Asam, CFO: “The year is off to a good start. I am excited to have joined an organization which is delivering and staying on the right track. We have accelerated topline growth and have already achieved double-digit non-IFRS operating profit growth in Q1. Our results set solid groundwork for our full year outlook, thereby pivoting back to profitable growth in 2023. Saying what we do, and doing what we say, will continue to be of great importance to us.”
Financial Performance
| Group results at a glance – First quarter 2023 | ||||||||
| IFRS | Non-IFRS1 | |||||||
| € million, unless otherwise stated | Q1 2023 | Q1 2022 | ∆ in % | Q1 2023 | Q1 2022 | ∆ in % | ∆ in % const. curr. | |
| Cloud revenue | 3,178 | 2,565 | 24 | 3,178 | 2,565 | 24 | 22 | |
| Thereof SAP S/4HANA Cloud revenue | 716 | 404 | 77 | 716 | 404 | 77 | 75 | |
| Software licenses | 276 | 317 | –13 | 276 | 317 | –13 | –13 | |
| Software support | 2,905 | 2,923 | –1 | 2,905 | 2,923 | –1 | –1 | |
| Software licenses and support revenue | 3,180 | 3,240 | –2 | 3,180 | 3,240 | –2 | –2 | |
| Cloud and software revenue | 6,358 | 5,806 | 10 | 6,358 | 5,806 | 10 | 8 | |
| Total revenue | 7,441 | 6,773 | 10 | 7,441 | 6,773 | 10 | 9 | |
| Share of more predictable revenue (in %) | 82 | 81 | 1pp | 82 | 81 | 1pp | ||
| Operating profit (loss) | 803 | 1,471 | –45 | 1,875 | 1,676 | 12 | 12 | |
| Profit (loss) after tax from continuing operations | 403 | 1,016 | –60 | 1,254 | 1,171 | 7 | ||
| Profit (loss) after tax² | 509 | 632 | –19 | 1,587 | 1,166 | 36 | ||
| Earnings per share – Basic (in €) from continuing operations | 0.35 | 0.87 | –60 | 1.08 | 1.00 | 8 | ||
| Earnings per share – Diluted (in €) from continuing operations | 0.35 | 0.87 | –60 | |||||
| Earnings per share – Basic (in €)² | 0.41 | 0.63 | –35 | 1.27 | 1.00 | 27 | ||
| Earnings per share – Diluted (in €)² | 0.41 | 0.63 | –35 | |||||
| Net cash flows from operating activities from continuing operations | 2,311 | 2,465 | –6 | |||||
| Free cash flow | 1,955 | 2,159 | –9 | |||||
| Number of employees (FTE, March 31) | 105,132 | 104,670 | 0 |
| 1 For a breakdown of the individual adjustments see table “Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement. |
| 2 From continuing and discontinued operations. |
| Due to rounding, numbers may not add up precisely. |
Financial Highlights1
First Quarter 2023
Current cloud backlog grew by 25% to €11.15 billion and was up 25% at constant currencies, a sequential growth improvement of 1 percentage point. SAP S/4HANA current cloud backlog was up 78% to €3.42 billion and up 79% at constant currencies.
In the first quarter, cloud revenue was up 24% to €3.18 billion and up 22% at constant currencies, up 1 percentage point sequentially. SAP S/4HANA cloud revenue was up 77% to €716 million and up 75% at constant currencies.
Supported by a few major transactions, software licenses revenue decreased by a moderate 13% to €276 million and was down 13% at constant currencies. Cloud and software revenue was up 10% to €6.36 billion and up 8% at constant currencies. Services revenue was up 12% to €1.08 billion and up 11% at constant currencies. Total revenue was up 10% to €7.44 billion and up 9% at constant currencies.
The share of more predictable revenue increased by 1 percentage point to 82% in the first quarter.
Cloud gross profit was up 28% (IFRS) to €2.24 billion, up 28% to €2.27 billion (non-IFRS), and up 27% (non-IFRS at constant currencies).
IFRS operating profit decreased 45% to €803 million. The decrease is mainly driven by the increase in share-based compensation which reflects the increase in share price over the first quarter as compared to last year’s decline over the same period. In addition, IFRS operating profit was impacted by restructuring expenses associated with the targeted restructuring program, as well as expenses resulting from a provision for pre-existing regulatory compliance matters (see section (D) Basis of Non-IFRS Presentation). Non-IFRS operating profit was up 12% to €1.87 billion and up 12% at constant currencies.
As a result, IFRS basic earnings per share decreased 60% to €0.35. Non-IFRS earnings per share (basic) increased 8% to €1.08. The effective tax rate was 40.5% (IFRS) and 28.3% (non-IFRS). For IFRS, the year-over-year increase mainly resulted from changes in non-deductible expenses and valuation allowances on deferred tax assets. For non-IFRS, the changes in non-deductible expenses do not apply due to respective adjustments of pre-tax figures.