Q2 2024 Sap Se Earnings Call Transcript
Key Points
- SAP SE (SAP) reported strong growth momentum in Q2 2024, with cloud revenue expanding by 25% to EUR4.2 billion.
- The company's operating profit jumped 35% to EUR1.9 billion year over year, driven by increased profitability and operational efficiency.
- SAP SE (SAP) has successfully integrated business AI into its portfolio, with 20% of all deals in Q2 including premium AI use cases.
- The company has a robust pipeline for the second half of 2024, with significant interest from large customers and partners in its GenAI hub.
- SAP SE (SAP) is making significant progress in its transformation program, with plans to achieve EUR200 million in additional run-rate savings by 2025.
- Software licenses revenue decreased by 27% compared to the same period last year, indicating a continued shift towards cloud solutions.
- The company incurred approximately EUR600 million in incremental restructuring expenses in Q2 2024, impacting IFRS operating profit.
- SAP SE (SAP) expects the majority of restructuring payouts to occur in the second half of the year, which could affect cash flow.
- The company faces a challenging macroeconomic environment, which could impact future growth and profitability.
- There are concerns about the availability of enterprise architects to support the company's Wise transformation journeys, which could affect execution.
Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the SAP Q2 2024 earnings conference call. (Operator Instructions)
I would now like to turn the conference over to Alexandra Steiger, Global Head of Investor Relations. Please go ahead.
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 second quarter '24 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 answd 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,
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