SAP SE (SAP) Misses Q3 EPS by 9c; offers outlook

SAP SE (NYSE: SAP) reported Q3 EPS of EUR1.23, EUR0.09 worse than the analyst estimate of EUR1.32. Revenue for the quarter came in at EUR8.47 billion versus the consensus estimate of EUR9.26 billion.

OUTLOOK

For 2024, SAP is updating its cloud and software revenue, operating profit and free cash flow outlook and now expects:

€29.5 – 29.8 billion cloud and software revenue at constant currencies (2023: €26.92 billion), up 10% to 11% at constant currencies, raising the midpoint by €400 million. The previous range was €29.0 – 29.5 billion at constant currencies.
€7.8 – 8.0 billion non-IFRS operating profit at constant currencies (2023: €6.51 billion), up 20% to 23% at constant currencies, raising the midpoint by €150 million. The previous range was €7.6 – 7.9 billion at constant currencies.
€3.5 – 4.0 billion free cash flow (2023: €5.09 billion). The previous outlook was approximately €3.5 billion.

SAP continues to expect:

€17.0 – 17.3 billion cloud revenue at constant currencies (2023: €13.66 billion), up 24% to 27% at constant currencies.
An effective tax rate (non-IFRS) of approximately 32% (2023: 30.3%).

Non-Financial Outlook 2024

In 2024, SAP continues to expect:

The Employee Engagement Index to be in a range of 70% to 74%.
A Customer Net Promoter Score of 9 to 13.
To steadily decrease carbon emissions across the relevant value chain, in line with our target of achieving Net Zero carbon emissions by 2030.
To steadily increase the number of women in executive roles in line with our end of year 2027 target to achieve 25%.

For earnings history and earnings-related data on SAP SE (SAP) click here.

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