According to the financial report, driven by the demand for artificial intelligence (AI), Europe's largest software company and German software giant, sap se, saw a double-digit increase in cloud revenue in the second quarter, reflecting the growth of service demand for running AI application programs and prompting more customers to subscribe to SAP's software. After the financial report was released, SAP's nyse-listed American stocks accelerated their rise after hours, rising more than 5% at one point, and as of press time, up 4.74% to $209.98. If it maintains its upward momentum after the opening on Tuesday, it will rebound for two consecutive days after hitting its closing low on June 25 last Friday.$SAP SE (SAP.US)$Cloud revenue of sap se, the largest software company in Europe and German software giant, increased by double digits, reflecting the growth of service demand for running AI application programs and prompting more customers to subscribe to SAP's software.
After the financial report was released, SAP's nyse-listed American stocks accelerated their rise after hours, rising more than 5% at one point, and as of press time, up 4.74% to $209.98. If it maintains its upward momentum after the opening on Tuesday, it will rebound for two consecutive days after hitting its closing low on June 25 last Friday.
In the post-market trading on Monday, SAP announced its financial report for the second quarter ended June. In the quarter, the total revenue under non-IFRS was €8.288 billion, up 10% year on year, higher than the analyst's expected €8.26 billion. On the same basis, the company's gross profit was €6.029 billion, up 11%, operating profit increased by 33% to €1.222 billion, and earnings per share (EPS) increased by 59% to €1.10. Looking at different businesses, under non-IFRS, the cloud revenue for the second quarter of SAP was €4.153 billion, up 25% year on year, slightly lower than the analyst's expected €4.16 billion. The revenue of SAP's largest cloud and software business was €7.175 billion, up 10% year on year, which was also lower than the analyst's expected €7.19 billion.
Looking at different businesses, under non-IFRS, the cloud revenue for the second quarter of SAP was €4.153 billion, up 25% year on year, slightly lower than the analyst's expected €4.16 billion. The revenue of SAP's largest cloud and software business was €7.175 billion, up 10% year on year, which was also lower than the analyst's expected €7.19 billion.
SAP pointed out that the cloud revenue in the second quarter was supported by the sales of cloud ERP suite, and the revenue of SAP's cloud ERP suite in the quarter increased by 33% to €3.414 billion.
According to the financial report, due to SAP's continued win of new businesses, the backlog of orders for cloud business is €14.8 billion, up 28%.
In terms of guidance, SAP reiterated its expectations for 2024, that is, the same as this year, and slightly raised its expectations for 2025. SAP currently expects that the operating profit under non-IRFS will be about €10.2 billion, up from the previous expectation of €10 billion. SAP said that the upward revision of the 2025 guidance reflects the expected incremental efficiency gains from expanding the transformation plan.
Christian Klein, CEO of SAP, said in the statement announcing the financial report data that the growth of SAP's cloud business in the second quarter remained strong, and commercial AI facilitated many transactions. SAP continues to strictly carry out the transformation, thereby improving the target of operating profit in 2025, and continue to invest in the transformation to become a leader in the commercial AI field. In view of SAP's progress and strong product line, the company is confident in achieving continuous accelerated revenue growth until 2027.
Edited by Jeffrey