SAP Announces Q4 and FY 2023 Results

WALLDORF, Germany, Jan. 23, 2024

• SAP exceeds non-IFRS operating profit and cash flow outlook for FY 2023
• Cloud revenue up 20% and up 23% at constant currencies for FY 2023, underpinned by 25% cloud revenue growth at constant currencies in the fourth quarter
• Current cloud backlog of €13.7 billion, up 25% and up 27% at constant currencies
• IFRS cloud gross profit up 23%, non-IFRS cloud gross profit up 23% and up 27% at constant currencies in FY 2023
• IFRS operating profit down 5%, non-IFRS operating profit up 9% and up 13% at constant currencies in FY 2023
• 2024 outlook anticipates accelerating cloud revenue growth
• Planned transformation program including restructuring in 2024 reflects focus on scalability of operations and Business AI
• 2025 non-IFRS operating profit and free cash flow ambition updated to reflect updated non-IFRS definition as well as approximately half a billion Euro of incremental efficiency gains from the program

WALLDORF, Germany, Jan. 23, 2024 /PRNewswire/ -- SAP SE (NYSE: SAP) announced today its financial results for the fourth quarter and fiscal year ended December 31, 2023.

Christian Klein, CEO: "SAP has delivered: We met or exceeded our outlook for 2023 in all key metrics. Based on a stellar order entry, our current cloud backlog expanded by 27% - an all-time high. We are confident about the company's prospects in 2024. From this position of strength, SAP is opening the next chapter: with the planned transformation program, we are intensifying the shift of investments to strategic growth areas, above all Business AI. Going forward, this will empower us to keep leading with innovation while increasing the scalability of the operating model."

Dominik Asam, CFO: "2023 was a year of inflection. We kept our promise and achieved double-digit non-IFRS operating profit growth despite an adverse macro environment. In 2024, we will focus on putting the right gradient of earnings growth in place to deliver on our raised ambition for 2025 and sustain growth and financial performance beyond."

All figures in this statement are based on SAP group results from continuing operations unless otherwise noted.

Financial Performance