March 3, 2024

SAP 2022: 11% revenue growth, 2.5% staff targeted by restructure

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SAP has announced what it phone calls a “targeted restructuring” as aspect of its full-yr and fourth-quarter 2022 outcomes. It expects this to influence 2.5% of its workers in 2023. It predicts a “moderate expense benefit” in 2023 and €300m to €350m in yearly expense financial savings as of 2024.

It is also checking out the sale of its share in Qualtrics, the on line survey supplier it acquired for $8bn in 2019, under the management of Monthly bill McDermott, and partially divested in 2020. SAP said that, considering that acquisition, Qualtrics’ income has increased by 3.5 times to roughly $1.5bn. “In the occasion of a productive transaction, SAP intends to stay a go-to-market place and know-how partner … A remaining determination on any transaction, its situations and timing is issue to sector disorders,” it claimed.

The provider claimed income of €30.87bn, symbolizing 11% calendar year-on-calendar year expansion. Of that, €12.56bn was cloud profits, up 33%, 41% of the full. That compares with 2021 cloud income of €9.418bn, 34% of the €27.842bn complete.

CEO Christian Klein explained: “SAP is far more resilient than at any time. We end 2022 with continued powerful cloud momentum and a return to operating gain expansion in the fourth quarter, marking an essential inflection point… As we enter the following chapter of SAP, I want to thank [CFO] Luka [Mucic] for his wonderful partnership on this journey.”

Mucic is stepping down from his function, and reported: “In my 37th and ultimate earnings for SAP, I am proud that the SAP staff is announcing great effects and ongoing cloud momentum. We are on track to supply our expansion and profitability commitments for 2023. I am incredibly confident in the continued success of SAP’s most enjoyable transformation in its background. Thank you to the excellent SAP household that I have been part of for 27 years.”

In the fourth quarter, the supplier said that cloud income was up 30% to €3.39bn. It also flagged cloud income from its flagship SAP S/4HANA ERP method as being up 101% to €0.66bn.

As in earlier quarterly statements, SAP famous the affect of the war in Ukraine and its final decision to “wind down” its business functions in Russia and Belarus. It said that at the conclude of the fourth quarter, “current cloud backlog was about €62m reduce owing to the termination of present cloud engagements in Russia and Belarus”.

By “cloud backlog”, the supplier implies contractually dedicated cloud revenue it expects to recognise in the long term. SAP also mentioned that “other impacts because of to this evolving problem are at the moment unfamiliar and could potentially topic our enterprise to materially adverse penalties should the situation escalate further than its existing scope”.

The provider shown some shoppers that have picked the Rise with SAP enterprise transformation as a company it has been touting because January 2021. These involved ExxonMobil, Fujitsu Minimal, the German Soccer Association (DFB), Lockheed Martin, Merck KGaA, the Munich Leukemia Laboratory, Port of Rotterdam, Renault Group and Swarovski.

SAP also mentioned that Accenture, Canon Manufacturing Printing, Daimler Truck AG, Ducati Motor Holding, Mahindra Group, Walgreens Boots Alliance and Zespri went dwell on SAP S/4HANA Cloud in the fourth quarter.

The provider picked out Brazil, Germany and Japan as owning “outstanding” cloud income performances, while China, India, the Netherlands, Switzerland and the US have been notably robust.

It also highlighted the launch, in November 2022, of SAP Build, a low-code development system it hopes will attractiveness to business buyers.

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