SAP SE (SAP) Bundle
How well do you know the driving forces behind SAP SE, one of the world's leading software companies? Have you ever wondered about the mission, vision, and core values that steer its global operations and innovation? In 2024, SAP's total revenue reached €34.18 billion, a 10% increase from the previous year, with cloud revenue jumping by 25% to €17.14 billion. Want to understand how these principles translate into SAP's strategic goals and financial achievements?
SAP SE (SAP) An Overview of
SAP SE, initially called System Analysis Program Development, was established in 1972 in Walldorf, Germany, by five former IBM engineers. SAP is known for its enterprise resource planning (ERP) software. The company has evolved into a market leader in enterprise applications, offering a wide array of solutions including:
- ERP and Finance: SAP S/4HANA for enterprise resource planning.
- Customer Relationship Management (CRM): SAP Sales Cloud and SAP Service Cloud.
- Supply Chain Management: SAP Supply Chain Management.
- Human Capital Management (HCM): SAP SuccessFactors.
- Business Technology Platform: SAP Business Technology Platform.
As of April 2025, SAP serves over 400,000 customers in more than 180 countries. The company's solutions are used by businesses of all sizes to manage their operations, improve customer relations, and enhance supply chain efficiency. SAP continues to expand its offerings through innovation and strategic acquisitions, solidifying its position in the enterprise software market.
In its latest financial reporting period, SAP showcased strong financial performance. The company reported record-breaking revenue, driven primarily by its cloud offerings. Specifically, SAP S/4HANA Cloud continued to be a significant growth driver, with revenues increasing substantially. This growth reflects the increasing demand for cloud-based solutions among businesses looking to digitally transform their operations. SAP has also seen growth in its key markets, including North America and Europe, as well as emerging markets in Asia. These financial results underscore SAP's successful transition to a cloud-centric business model and its ability to capitalize on the growing demand for enterprise software solutions.
SAP SE stands as a leading company in the enterprise software industry, providing solutions to businesses globally. Explore more about SAP's journey, mission, and operational strategies here: SAP SE (SAP): History, Ownership, Mission, How It Works & Makes Money
SAP SE (SAP) Mission Statement
SAP SE's mission statement is to help the world run better and improve people's lives through innovative technology solutions. SAP SE (SAP): History, Ownership, Mission, How It Works & Makes Money
SAP aims to empower organizations of all sizes to achieve their full potential by providing them with the tools and technologies they need to succeed.
SAP's purpose is to help the world run better and improve people's lives with sustainability at the core. SAP's objective is to create a positive economic, environmental, and social impact worldwide within planetary boundaries.
Key elements of SAP's mission include:
- Empowering businesses: SAP aims to empower organizations of all sizes to achieve their full potential by providing them with the tools and technologies they need to succeed.
- Driving innovation: SAP is dedicated to driving innovation in the industry and constantly pushing the boundaries of what is possible with their software solutions.
- Improving lives: SAP is focused on making a positive impact on society by helping businesses operate more efficiently, create new opportunities, and improve the lives of people around the world.
- Ensuring sustainability: SAP is committed to sustainability and responsible business practices, working towards a more sustainable future for our planet and future generations.
SAP helps customers transform into fully digital, resilient, and sustainable enterprises – companies enabled with data visibility into their business functions and processes to make the most critical strategic and operating decisions.
SAP's vision is to bring out the best in every business by enabling rapid adaptation to changes, embedding sustainability in operations, and driving greater productivity.
SAP is aligned with six of the United Nations Sustainable Development Goals (SDGs), addressing interconnected environmental and social challenges like climate change, poverty, and inequality.
SAP is dedicated to driving innovation in the industry and constantly pushing the boundaries of what is possible with their software solutions.
SAP is focused on making a positive impact on society by helping businesses operate more efficiently, create new opportunities, and improve the lives of people around the world.
SAP is committed to sustainability and responsible business practices, working towards a more sustainable future for the planet and future generations.
SAP strives to create sustainable solutions that not only drive business growth but also contribute to a more sustainable future.
SAP is focused on making a positive impact on society by helping businesses operate more efficiently, create new opportunities, and improve the lives of people around the world.
SAP is committed to sustainability and responsible business practices, working towards a more sustainable future for the planet and future generations.
SAP aims to help businesses run as intelligent enterprises through cloud technologies and AI integration. As of 2024, SAP's cloud revenue reached €17.14 billion, representing a 25% increase from 2023.
SAP targets supporting 487,000 customers across 180 countries, with a focus on mid-sized and enterprise organizations.
SAP committed €500 million toward sustainable business solutions in 2024, targeting net-zero carbon emissions by 2030.
SAP supports social enterprises through a three-pronged approach:
- Organizational Capacity Enhancement
- Social Procurement
- Policy Advocacy and Resource Investment
SAP contributed $3.7 million in in-kind support through over 140 consulting projects, in 2023 alone.
SAP facilitates the entry of social enterprises into new B2B markets like the SAP Business Network and has launched functionality within the SAP Business Network to help social enterprises identify as suppliers to potential buyers, aligning with corporate sustainability goals.
SAP advocates for supportive policies and dedicates resources towards fostering a sustainable and inclusive economy, including building networks and enhancing stakeholder capacity.
SAP's ERP software includes programs for all core business areas, such as finance, human resources, procurement, production, and materials management, among others. Through its ERP software and HANA database, SAP centralizes data management, enabling various departments in the company to have a single view of the truth.
Vision Statement: SAP's vision statement is to help the world run better and improve people's lives by providing innovative software solutions that empower businesses to thrive in the digital economy.
Core Values:
- Innovation and Digital Transformation
- Customer Success and Commitment
- Sustainability and Social Responsibility
- Diversity, Equity, and Inclusion
- Ethical Business Practices
SAP's vision is to bring out the best in every business by enabling rapid adaptation to changes, embedding sustainability in operations, and driving greater productivity.
SAP is committed to helping the world run better and improving people's lives. SAP helps customers transform into fully digital, resilient, and sustainable enterprises.
Our vision is to bring out the best in every business.
We aim to be the leading provider of enterprise application software, enabling organizations to streamline their operations, enhance customer experiences, and drive sustainable growth.
At SAP, we are committed to delivering cutting-edge technologies that transform the way businesses operate, making them more efficient, agile, and competitive in today's fast-paced market.
SAP aims to empower organizations of all sizes to achieve their full potential by providing them with the tools and technologies they need to succeed.
Our vision at SAP is to help businesses run better and improve people's lives. We are committed to delivering cutting-edge solutions that enable our customers to streamline their operations, enhance their customer experiences, and stay ahead of the competition in today's rapidly evolving business landscape.
We believe in empowering our employees to innovate, collaborate, and make a difference in the world.
One of the key aspects of our vision is to constantly evaluate the impact of our products on society and the environment. We strive to create sustainable solutions that not only drive business growth but also contribute to a more sustainable future.
SAP SE aims to help businesses run better by providing enterprise software solutions to manage business operations and customer relations.
SAP's vision is to bring out the best in every business by enabling rapid adaptation to changes, embedding sustainability in operations, and driving greater productivity.
SAP's purpose is to help the world run better and improve people's lives.
How We Run:
- Tell it like it is.
- Stay Curious Embrace differences.
- Keep the promise.
- Build Bridges, not silos.
SAP's fair value estimate is $278 per share, implying a fiscal 2025 enterprise value/EBITDA multiple of 28 times and a P/E ratio of 42 times.
We expect low to midteens revenue growth in the near and midterm, fading to high-single digits in the long term.
We expect the adjusted EBIT margin to rise throughout our forecast to the low 30s.
We expect near-term revenue growth to be driven by its core cloud ERP offerings, RISE with SAP and GROW with SAP.
RISE with SAP targets its installed base of on-premises ERP customers, which is the primary revenue driver.
SAP's ERP software includes programs for all core business areas, such as finance, human resources, procurement, production, and materials management, among others.
Through its ERP software and HANA database, SAP centralizes data management, enabling various departments in the company to have a single view of the truth.
Indeed, 98 of the 100 largest companies in the world are SAP customers and 85 of the 100 largest companies are SAP S/4HANA (core ERP offering) customers.
SAP announced it would end standard maintenance of ECC in 2027 with extended maintenance possible to 2030 (at a higher cost). Hence, a full 10 years notice was given to customers to plan their shift to the cloud.
Furthermore, in supporting S/4HANA, SAP committed in 2023 to ongoing maintenance for S/4HANA until at least 2040.
The company has yet to release its latest long-term ambitions, but expects revenue growth to accelerate at least through 2027 along with rising margins as the cloud-business reaches efficient scale.
SAP is following a land and expand strategy, which is common in the enterprise software market.
RISE with SAP and GROW with SAP are the land products after which the company then upsells and cross-sells more SAP products to these customers, which is much easier in a cloud-based model.
Financial highlights for FY2024:
- Cloud revenue up 25% and up 26% at constant currencies in FY2024.
- Cloud ERP Suite revenue up 33% and up 34% at constant currencies in FY2024.
- Total revenue up 10% and up 10% at constant currencies in FY2024, reaching €34.18 billion.
As of December 31, total cloud backlog was up 43% to €63.29 billion and up 40% at constant currencies.
SAP meets or exceeds all financial outlook parameters for FY2024.
Predictable revenue accounted for 83% of the company's total revenue in 2024, an increase from 81% in 2023.
SAP's current cloud backlog reached €18.08 billion by the end of Q4 2024, a 32% increase compared to the same period in the previous year (29% in constant currencies).
In the last quarter of 2024, SAP achieved total revenue of €9.38 billion, an 11% increase from Q4 2023 (10% when adjusted for constant currencies).
The cloud business contributed €4.71 billion in revenue, a 27% increase year-over-year.
Within the cloud segment, the Cloud ERP Suite saw the fastest growth, rising by 35% to €3.95 billion.
Software license revenue declined further during Q4, falling 18% to €683 million.
SAP's gross profit for Q4 2024 grew by 12% year-over-year, reaching €6.94 billion.
The cloud segment played a key role in this improvement, with non-IFRS cloud gross profit increasing by 30% to €3.46 billion.
The non-IFRS cloud gross margin also improved, reaching 73.5%, which is 1.3 percentage points higher than in Q4 2023.
IFRS operating profit for the quarter rose by 6% to €2.02 billion, while non-IFRS operating profit grew more significantly, by 24%, to €2.44 billion.
In 2024, SAP's overall revenue climbed to €34.18 billion, marking a 10% increase compared to the previous year.
A significant portion of this success came from SAP's cloud business, which earned €17.14 billion: a sharp 25% jump from 2023. Adjusting for constant currencies, cloud revenue saw an even stronger 26% increase.
Within SAP's cloud portfolio, the Cloud ERP Suite, including SAP S/4HANA Cloud, stood out by generating €14.17 billion in revenue. This represents a remarkable 33% growth compared to 2023, with 34% growth at constant currencies.
SAP SE (SAP) Vision Statement of
A vision statement serves as a guiding star for a company, outlining its aspirations and long-term goals. It encapsulates the essence of what the company aims to achieve and provides a clear direction for its strategic initiatives. For SAP SE, a global leader in enterprise software, the vision statement reflects its ambition to empower businesses and improve the world. Let's delve into the key components of SAP's vision and explore how they translate into tangible actions and outcomes. More details about SAP SE can be found here: SAP SE (SAP): History, Ownership, Mission, How It Works & Makes Money
Becoming the Cloud Company Powered by AISAP's vision is to become the cloud company powered by AI. This indicates a strategic shift towards cloud-based solutions and the integration of artificial intelligence across its offerings. Several factors underpin this transition:
- Market Demand: Businesses are increasingly adopting cloud solutions for their scalability, flexibility, and cost-effectiveness. SAP aims to capitalize on this trend by offering a comprehensive suite of cloud-based applications and services.
- Technological Advancements: Artificial intelligence is transforming industries, and SAP recognizes its potential to enhance its software capabilities. By embedding AI into its solutions, SAP can provide customers with intelligent automation, predictive analytics, and personalized experiences.
- Competitive Landscape: The enterprise software market is highly competitive, with companies vying for market share. SAP seeks to differentiate itself by offering innovative cloud and AI solutions that address the evolving needs of businesses.
In 2024, SAP's cloud revenue increased significantly, demonstrating the success of its cloud-first strategy. The company reported cloud revenue of €13.66 billion, a surge of 24.3% at constant currencies compared to the previous year. This growth was fueled by strong demand for SAP's S/4HANA Cloud and other cloud offerings. SAP is investing heavily in research and development to enhance its AI capabilities. In 2024, SAP invested €5.64 billion in research and development.
Helping the World Run BetterBeyond technological advancements, SAP's vision is deeply rooted in its commitment to helping the world run better. This reflects a broader purpose that extends beyond financial gains. Here's how SAP contributes to a better world:
- Sustainable Solutions: SAP offers solutions that enable businesses to operate more sustainably, reduce their environmental impact, and promote responsible practices.
- Social Impact: SAP partners with organizations to address social challenges, such as poverty, inequality, and lack of access to education.
- Ethical Business Practices: SAP adheres to the highest ethical standards and promotes transparency and accountability in its operations.
SAP has set ambitious sustainability goals, including achieving net-zero emissions by 2030. The company is actively working to reduce its carbon footprint, promote renewable energy, and develop sustainable solutions for its customers. In 2024, SAP achieved a 30% reduction in its greenhouse gas emissions compared to its 2017 baseline.
Improving People's LivesAt the heart of SAP's vision lies a commitment to improving people's lives. This encompasses various aspects, including:
- Empowering Employees: SAP provides its employees with opportunities for growth, development, and meaningful work.
- Enhancing Customer Experiences: SAP strives to deliver exceptional customer experiences through its innovative solutions and services.
- Contributing to Society: SAP supports initiatives that improve education, healthcare, and overall well-being in communities around the world.
SAP invests in employee training and development programs to foster a culture of innovation and excellence. The company also partners with educational institutions to promote STEM education and prepare the next generation of technology leaders. In 2024, SAP employees volunteered over 200,000 hours to support various community initiatives.
SAP SE (SAP) Core Values of
While specific details on SAP's core values as of April 2025 are not explicitly available, SAP generally emphasizes innovation, customer success, and sustainability. These values are reflected in their strategic initiatives and business practices.
SAP's commitment can be seen through various initiatives and financial decisions, aligning with their dedication to customer satisfaction and innovation.
Here’s how SAP demonstrates these values:
- Customer Focus: SAP aims to deliver solutions and services that enable customer success.
- Innovation: SAP invests in research and development to drive technological advancements. In 2024, SAP's research and development expenses totaled €4.635 billion.
- Sustainability: SAP integrates sustainable practices into its operations and product offerings.
For more insights into SAP and its investors, check out: Exploring SAP SE (SAP) Investor Profile: Who’s Buying and Why?
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