Q1 2025 SAP SE Earnings Call Transcript
Key Points
- SAP SE (SAP) reported a 29% increase in its current cloud backlog, reaching EUR18.2 billion in Q1 2025.
- Cloud revenue grew by 26% year-on-year, with the cloud ERP suite showing a 33% increase.
- Operating profit increased by 58% in Q1, driven by strong execution of SAP's transformation program.
- SAP SE (SAP) maintained its position as the number one enterprise application software vendor according to IDC and Gartner.
- The company is seeing strong customer engagement across various industries, with significant deals in the automotive sector and public sector.
- Transactional cloud revenues experienced a slight decline in Q1, reflecting macroeconomic challenges.
- There is uncertainty regarding the impact of global trade disputes and tariffs on future conversion rates and revenue growth.
- The cloud revenue growth decelerated slightly from Q4, partly due to delayed ramp-ups from some deals.
- SAP SE (SAP) faces potential risks from geopolitical tensions and tariffs, which could impact its cloud gross margins.
- The company acknowledges the difficulty in making projections for the entire year due to ongoing macroeconomic uncertainties.
Good evening, everyone, and welcome. Thank you for joining us. With me today are CEO, Christian Klein; and CFO, Dominik Asam. On this call, we will discuss SAP's first quarter 2025 results. You can find the deck supplementing this call as well as our quarterly statement on our Investor Relations website.
During this call, we will make forward-looking statements. which are predictions, projections or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to differ materially. Additional information regarding these risks and uncertainties may be found in our filings with the SEC, including, but not limited to, the Risk Factors section of our annual report on Form 20-F for 2024.
Unless otherwise stated, all numbers on this call are non-IFRS and growth rates and percentage point changes are non-IFRS year on year at constant currencies. The non-IFRS financial measures we provide should not be considered as a
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