SAP Clocks 6% Revenue Growth In Q4 Backed By SaaS, PaaS; Plans To Downsize Staff - SAP (NYSE:SAP)

SAP SE (NYSE: SAP) reported fourth-quarter FY22 revenue growth of 1% year-on-year to €8.44 billion at constant currencies. Total revenue was up 6% in actual currency.
Cloud revenue increased 22% Y/Y to €3.39 billion at CC. Cloud revenue for the full year was up 24% at CC, driven by double-digit growth across the SaaS and PaaS portfolios.
Software licenses and support revenue declined 14% Y/Y to €3.90 billion at CC.
Cloud and software revenue was flat Y/Y to €7.29 billion at CC.
Cloud backlog was up 24% Y/Y to €12.03 billion at CC.
Non-IFRS cloud gross margin was up 270 bps to 71.6% at CC, driven by expanding gross margins across all cloud business models.
The non-IFRS operating margin increased by 30 bps to 31.2% at CC, helped by the sale of the SAP Litmos business. Non-IFRS EPS was €1.00.
Downsizing And Stake Sale: SAP shared plans to cut 2.5% of its global staff and recognize €250 million - €300 million charges in Q1. It will lead to €300 million - €350 million in annual cost savings as of 2024. SAP also shared plans to explore a sale of its remaining stake in Qualtrics International Inc XM.
FY23 Outlook: SAP sees cloud revenue at CC of €15.3 billion – €15.7 billion.
SAP expects cloud and software revenue at CC of €28.2 billion – €28.7 billion.
Price Action: SAP shares closed lower by 0.03% at $116.16 on Wednesday.