Strong Growth in APJ Leads SAP to Successful 2024
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Key Takeaways
⇨ SAP achieved impressive financial results in FY 2024, exceeding all outlook parameters with cloud revenue growing by 25%, total revenue increasing by 10%, and cloud backlog rising by 32%.
⇨ The company's cloud revenue performance was particularly strong in the Asia-Pacific and Japan (APJ) region, demonstrating significant growth of 34% in Q4, which contributed to the overall robust performance across various regions.
⇨ Japan stood out with a total revenue growth of 15% in Q4 and 20% for the full year, highlighting the acceleration of performance in the APJ region and its impact on SAP's overall success.
SAP has met or exceeded all financial outlook parameters in its FY 2024 results making for an extremely strong year for the company. Current cloud backlog increased by 32% to €18.1 billion, total cloud backlog is now €63.3 billion, cloud revenue increased by 25% to €17.1 billion, and total revenue grew 10% to €34.2 billion. This capped a series of strong quarters for SAP and demonstrates the company’s resilience, allowing it to become “perhaps one of the best years in SAP’s history” according to CEO Christian Klein.
While performance was strong across the board throughout the year, the company’s quarterly statement highlighted that “In the fourth quarter, SAP’s cloud revenue performance was particularly strong in Asia-Pacific and Japan (APJ) and Europe, Middle East and Africa (EMEA) and robust in the Americas region. China, France, India, Italy, South Korea, and the Netherlands had outstanding performances, while Canada, Germany, Japan, and the U.S. were particularly strong. Cloud revenue for the full year from China, Germany, India, Japan, and Spain also excelled.
Drilling into the regional numbers, the fourth quarter saw APJ leading cloud revenue growth with a 34% increase at constant currencies compared to 2023. For the full year that growth was 37% compared to 31% in EMEA and 19% in the Americas. Cloud and software revenue grew by 15% in APJ for the quarter, compared to 13% in EMEA and 8% in the Americas, with 13% growth for the full year compared to 12% in EMEA and 10% in the Americas.
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SAP highlighted Japan’s performance in the region with total revenue growing by 15% for the quarter, compared to 11% in the remainder of the region, and 20% for the year. This was compared to the 8% growth in total revenue for the rest of APJ.
Although APJ’s total revenue is only €4.9 billion at constant currencies compared to €15.5 billion in EMEA and €13.9 billion in the Americas, this growth demonstrates the accelerating performance in the region and establishes the impact it has on the overall performance of the company.
Customers should look for a continued focus from SAP on the region and can look forward to new sales leadership with announcement of co-CRO Emmanual (Manos) Raptopoulos. Raptopoulos, currently the regional president of SAP EMEA, has nearly 20 years of experience with SAP and will manage the SAP EMEA, MEE, and APAC regions moving forward.
More information on SAP’s leadership announcements and financial performance can be found here.