On Tuesday, SAP posted revenue and operating profit ahead of analysts' expectations for the fourth quarter, led by growth at its core cloud business. The company said Brazil, Germany, France, India, and South Korea had enjoyed outstanding cloud revenue growth in the quarter. Operating profit for the fourth quarter fell to EUR2.51 billion from EUR2.56 billion, with SAP's operating margin falling to 29.6% from 31.7%. For 2024, SAP expects non-IFRS operating profit at constant currencies between EUR7.6 billion and EUR7.9 billion, cloud revenue at constant currencies between EUR17 billion and EUR17.3 billion and free cash flow of roughly EUR3.5 billion. By 2025, SAP expects non-IFRS operating profit of approximately EUR10 billion, including share-based compensation expenses of roughly EUR2 billion, and free cash flow of about EUR8 billion.

Source: Wall Street Journal January 24, 2024 13:01 UTC