SAP has announced its financial results for the fourth quarter and fiscal year ending Dec. 31, 2024.
The company met or exceeded financial projections in 2024. Current cloud backlog grew to €18.1 billion, up 32% from last year, and 29% at constant currency. Total cloud backlog grew to €63.3 billion. That represents a 43% increase, or 40% at constant currency.
Cloud revenues increased 25%, or 26% at constant currency, in 2024. This, while Cloud ERP Suite revenues increased 33%, or 34% at constant currency.
Total revenues showed a 10% growth, which also held up at constant currency. Although IFRS operating profit fell 20%, the company realized a 25% increase in non-IFRS operating profit, and as much as 26% at constant currency.
Accelerating cloud revenue growth
Looking ahead to 2025, SAP expects accelerated growth in cloud revenue. According to CEO Christian Klein, the fourth quarter had a strong close, with half of cloud order entries including AI. For the full year, SAP exceeded its cloud goals, accelerating growth in cloud revenue and current cloud backlog despite a significantly larger base.
Total cloud backlog reached €63 billion, up 40%, while revenue growth returned to double digits. Klein emphasizes that SAP’s strong position in data and Business AI reinforces confidence that revenue growth will continue to accelerate through 2027.
CFO Dominik Asam adds that SAP is pleased with the strong close to 2024, in which the company exceeded forecasts for cloud and software revenue, non-IFRS operating profit and free cash flow. According to Asam, the 29% growth in the current cloud backlog shows the strength of SAP’s strategy and its ability to meet its stated goals.