SAP Clocks 10% Topline Growth In Q1 Backed By Cloud And Software Momentum, Robust Cloud Backlog - SAP (NYSE:SAP)

SAP SE (NYSE: SAP) reported first-quarter FY23 revenue growth of 10% year-on-year to €7.44 billion. Total revenue was up 9% at constant currencies.
Cloud revenue increased 22% Y/Y to €3.18 billion at CC.
Software licenses and support revenue declined 2% Y/Y to €3.18 billion at CC.
Cloud and software revenue grew 8% Y/Y to €6.36 billion at CC.
Cloud backlog was up 25% Y/Y to €11.15 billion at CC.
Non-IFRS cloud gross margin was up 290 bps to 71.4% at CC, driven by expanding gross margins across all cloud business models.
Non-IFRS operating profit was up 12% to €1.87 billion at CC. Non-IFRS EPS (basic) from continuing operations was €1.08.
Christian Klein, CEO: "We have entered a powerful new phase in our strategic transformation, with topline and bottom-line results clearly demonstrating the tipping point we passed in the fourth quarter 2022. Our cloud momentum continues at a fast pace which is contributing to our strong revenue and double-digit non-IFRS operating profit growth this quarter."
Dividend: SAP proposed a dividend of €2.05 per share for FY22 representing a Y/Y increase of 5% compared to the regular dividend paid for FY21.
FY23 Outlook: SAP updated its full-year 2023 outlook to cover only continuing operations, reflecting the expected Qualtrics divestiture.
SAP reduced cloud revenue at CC from €15.3 billion – €15.7 billion to €14.0 – €14.4 billion to reflect the anticipated divestiture of Qualtrics.
SAP cut cloud and software revenue at CC from €28.2 billion – €28.7 billion to €26.9 – €27.4 billion.
Price Action: SAP shares traded higher by 1.17% at $128.34 premarket on the last check Friday.

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