Second Quarter - SAP earns more than expected and confirms forecast 2024
Europe's largest software manufacturer SAP reported stronger-than-expected operational results in the second quarter despite challenging economic conditions. The operating result before interest and taxes (EBIT), adjusted for special items, grew by 33% year-on-year to 1.94 billion Euro, according to the Walldorf-based company's announcement on Monday evening after the US stock market closed. The revenue increased by 10% to 8.29 billion Euro. The cloud business, which grew by 25%, was the main driver.
The full-year forecast for 2024 was confirmed by the Dax heavyweight. However, the company plans to expand its workforce reduction program and expects to achieve an operational result of 0.2 billion Euro more in 2025 than previously anticipated.
The net income decreased by 69% to 918 million Euro in the second quarter. This was mainly due to a billion-dollar special item from the sale of the former US subsidiary Qualtrics the previous year.
- Despite the challenging economic situation in Europe, Germany's prominent tech company SAP reported improved operational results in Q2, surpassing expectations.
- The prognosis for SAP's full-year earnings in 2024, as stated by the Dax heavyweight based in Walldorf, remains unchanged.
- Some of the leading companies in Baden-Württemberg, including SAP, are planning to expand their workforce reduction programs in light of projected operational savings by 2025.
- The economic situation in Europe and other parts of the world significantly impacted SAP's net income in Q2, with a notable dip observed due to a special item from the sale of Qualtrics.
