European tech leaders warn against stifling AI innovation as SAP’s CEO pushes back on European Union regulations. At the same time, the FDA rolls out new healthcare AI oversight measures, and major tech companies struggle to meet European compliance standards. Testing reveals that even top AI models from OpenAI, Meta and Anthropic fall short of EU requirements in key areas like cybersecurity and bias prevention, highlighting the growing tension between rapid AI advancement and regulatory control.SAP Chief P ...

Exhibit 99.1 Quarterly Statement Q3 2024 SAP Announces Q3 2024 Results in € millions, unless otherwise stated | Current cloud | Total revenue | Cloud & | Cloud revenue | | Cloud ERP Suite | | --- | --- | --- | --- | --- | --- | | backlog | | Software revenue | | | revenue | | 15,377 | 8,470 | 7.429 | 4.351 | | 3,636 | | A +25% (+29% @cc) | +9% (+10% @cc) | +11% (+12% @cc) | +25 (+27% @cc) | | +34% (+36% @cc) | | Cloud gross profit | Gross profit | Operating profit | Earnings per | | | | (Cloud gross marqin) ...

Shares of SAP SE SAP continued to rise in early trading on Tuesday after the company reported its third-quarter results.The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.KeyBanc Capital Markets On SAPAnalyst Jackson Ader reaffirmed an Overweight rating, while raising the price target from $230 to $270.SAP delivered another quarter of more than 30% Cloud ERP growth and accelerated organic growth in constant currency terms, Ader said in a note. Current clou ...

Core Insights - SAP exceeded third-quarter profit and sales estimates, driven by strong demand for its cloud offerings and artificial intelligence (AI) products [1][2] - The company raised its sales outlook, with U.S.-listed shares reaching a record high [1][2] Financial Performance - SAP reported third-quarter earnings per share (EPS) of 1.25 euros ($1.35) and revenue of 8.47 billion euros ($9.16 billion), reflecting a 9% increase [1] - Cloud revenue surged 25% to 4.35 billion euros, while total cloud and software sales rose 11% to 7.43 billion euros [1] - The current cloud backlog increased by 25% to 15.4 billion euros [1] Business Strategy - CEO Christian Klein highlighted significant progress in business AI, noting that many cloud deals in Q3 included AI use cases [2] - SAP now anticipates full-year cloud and software revenue between 29.5 billion euros and 29.8 billion euros, raising the midpoint by 400 million euros [2] - The company expects free cash flow to range from 3.5 billion euros to 4.0 billion euros, an increase from previous estimates [2] Market Reaction - SAP's American depositary receipts (ADRs) rose about 2% to $233.41, having previously reached a record of $237.71 [2] - The ADRs have increased by over 50% this year [2]

SAP SE (SAP) reported third-quarter 2024 non-IFRS earnings per share (EPS) of €1.23 ($1.35), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $1.31.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.SAP achieved significant growth in its cloud revenues, especially Cloud ERP Suite, and progress in Business AI, with key innovations like SAP Knowledge Graph gaining traction. The company reported total revenues on a non-IFRS basis of €8.47 billion ($ ...

Following my coverage on SAP (NYSE: SAP ) in Jul'24, for which I recommended a buy rating as demand remains very strong, as indicated by the solid CCB growth trend and revenue growth performance, this post is to provideI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be ...

Christian Klein, Co-CEO of German software and cloud computing giant SAP, speaks during a press conference to present SAP's financial results for 2019 on January 28, 2020 in Walldorf, southwestern Germany. - German software giant SAP reported a bottom line undermined by heavy restructuring costs, but lifted forecasts for the year ahead.Europe should avoid regulating artificial intelligence and focus its attention on the results of the technology instead, the CEO of German enterprise tech giant SAP told CNBC ...

Financial Data and Key Metrics - Current cloud backlog increased by 29% to EUR15.4 billion, driven almost entirely organically [5] - Cloud revenue growth accelerated to 27%, reaching EUR4.4 billion, with Cloud ERP Suite growing 36% to EUR3.6 billion [5] - Operating profit increased by 28% to EUR2.2 billion, with an operating margin of 26.5% [5] - Total revenue grew by 10% year-over-year to EUR8.5 billion, primarily driven by cloud revenue strength [18] - Free cash flow increased by 44% to EUR1.2 billion in Q3, with a 47% increase to EUR5 billion for the first nine months [21] Business Line Performance - Cloud ERP Suite was the main driver of growth, accounting for 84% of total cloud revenue [18] - 30% of cloud order entry in Q3 included AI use cases, with strong uptake in sourcing, supply chain, and manufacturing [4][26] - The company completed the acquisition of WalkMe, which contributed EUR14 million to cloud revenue in Q3 [18][42] Regional Performance - Cloud revenue performance was particularly strong in APJ and EMEA, with robust growth in the Americas [20] - Key markets such as Brazil, Chile, Germany, Italy, India, Japan, and Spain showed outstanding cloud revenue growth [20] Strategy and Industry Competition - The company is focusing on its "land and expand" strategy, with a strong emphasis on adoption and consumption [10] - SAP is leveraging its AI strategy, with over 100 AI use cases embedded across its solutions and significant growth in GenAI hub consumption [13] - The company is restructuring its go-to-market model to improve productivity and sales efficiency, with a focus on empowering its partner ecosystem [10][11] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and strategic execution, despite macroeconomic challenges [22] - The company raised its 2024 outlook, expecting an operating profit of EUR7.8 to EUR8 billion, and remains on track for its 2025 financial goals [15][21] - Management highlighted strong demand for cloud solutions, particularly from large enterprises, and expects continued double-digit revenue and operating profit growth [15][22] Other Important Information - The company announced a major upgrade to its digital copilot, Joule, which now includes collaborative AI agents and over 500 skills [12] - SAP introduced the SAP Knowledge Graph, which leverages decades of business process knowledge to enhance GenAI capabilities [14] Q&A Session Summary Question: Large deals contribution and demand environment [24] - Large deals exceeding EUR5 million accounted for over 60% of cloud order entry, reflecting strong momentum from the installed base [24] - Management noted that macroeconomic challenges persist, but demand for cloud ERP solutions remains strong, particularly in Germany [25] Question: AI use cases and pricing [24][26] - 30% of deals included AI use cases, with upside potential in sourcing, supply chain, and manufacturing [26] - AI-driven deals are bundled with premium offerings like RISE and GROW, providing value to customers and growth opportunities for SAP [26] Question: Management changes and reorganization risks [29] - Management changes are part of the company's ongoing restructuring, with a focus on improving productivity and sales efficiency [29] - The company is confident in its ability to execute its strategy and close deals in Q4, despite the reorganization [34] Question: Free cash flow drivers [30] - Free cash flow growth in Q3 was primarily due to increased profitability and lower tax payments, with some phasing effects [41] Question: Cloud ERP Suite growth drivers [36] - Growth in Cloud ERP Suite was driven by large customer migrations to RISE, strong net new customer acquisition, and platform extensions [37] Question: Gross margin outlook [36] - Cloud gross margin improved by 0.6 percentage points to 73.7%, with further expansion expected in 2025 due to operational efficiencies and scale [39][40] Question: US federal business and investigations [45] - The US federal business is a small fraction of total revenue, and recent investigations are unrelated to SAP's case from 2022 [46][48] Question: Cross-sell and upsell opportunities [51] - The company sees significant cross-sell and upsell potential in its installed base, particularly in HR, finance, and supply chain [52] Question: Support revenue trends [64] - Support revenue declined by 2% in Q3, with a gradual decline expected as more customers migrate to the cloud [65] Question: Q4 cost and operating profit outlook [64] - Q4 operating profit guidance is conservative due to phasing effects in software revenue, employee bonuses, and WalkMe integration costs [68] Question: Backlog growth and go-to-market changes [71] - Backlog growth of 29% was largely driven by the inclusion of WalkMe, with organic growth remaining flat [72] - Go-to-market changes, including partner ecosystem expansion and cross-sell incentives, will be implemented starting January 2025 [73][74]

| --- | --- | --- | |-------|-------|-------| | | | | | | | | 2 Third Quarter 2024 Results Presentation | October 21, 2024 Safe Harbor Statement During this presentation we will make forward-looking statements which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding th ...

Current cloud backlog of €15.4 billion, up 25% and up 29% at constant currenciesCloud revenue up 25% and up 27% at constant currenciesCloud ERP Suite revenue up 34% and up 36% at constant currenciesTotal revenue up 9% and up 10% at constant currenciesIFRS cloud gross profit up 26%, non-IFRS cloud gross profit up 27% and up 28% at constant currenciesIFRS operating profit up 29%, non-IFRS operating profit up 27% and up 28% at constant currenciesSAP raises its 2024 outlook for cloud and software revenue, opera ...