In the second quarter, revenue from cloud products was on the rise. In total, the German company posted 4.15 billion euros in cloud revenue, of which 3.41 billion euros came from Cloud ERP.
SAP categorizes its key pioneers for the coming years as Cloud ERP. These include RISE with SAP, ERP solution S/4HANA Cloud, and the Business Technology Platform. These products should help transition customers still using legacy software to more modern ERP, something that increasingly seems to be succeeding, judging by the quarterly figures.
For example, total revenue reached 8.29 billion euros, compared to 7.55 billion euros in the same period last year. A substantial part of the growth comes from Cloud ERP, which grew 33% from 2.56 billion euros to 3.41 billion euros. All other revenue comes from products such as extensions, IaaS and other types of software.
Financial analysts roughly assumed similar figures. Nevertheless, the stock market reacted well to the quarterly figures, rewarding them with a nearly 5% higher share value. “Our cloud growth momentum remained strong in Q2, with Business AI enabling many deals. We continue to execute on our transformation with great discipline, leading to an increase in our operating profit ambition for 2025,” said CEO Christian Klein.
Tip: Christian Klein: “SAP has the most modern cloud stack of all SaaS vendors”
Up to 10,000 jobs gone
On a side note, operating profit did decline 11%. Whereas 1.37 billion euros was still on the books last year, it was 1.22 billion euros in the past three months. This is mainly due to the elimination of 8,000 jobs, which now costs about 600 million euros. In presenting its quarterly figures, SAP now communicates that 9,000 to 10,000 jobs will be affected by the restructuring plans. Affected employees must find a solution through leave programs and internal training programs.