SAP says it's 'off to a great start in 2024' after Q1 earnings

SAP SE (ETR: SAP) is trading down in extended hours after coming in shy of Street estimates for per-share earnings in Q1.

SAP remains bullish for 2024

On the plus side, the software giant reiterated its outlook for 2024 on Monday.

SAP ended its recent quarter with €14.2 billion ($15.13 billion) of cloud backlog which translates to a 27% annualised growth. Christian Klein – chief executive of the software giant said in a press release today:

The multinational improved its free cash flow by a whopping 28% to €2.49 billion in Q1 as well. SAP stock is now down about 7.0% versus its year-to-date high.

SAP Q1 earnings snapshot

SAP saw its total revenue print at €8.04 billion for the first quarter as cloud revenue went up 24% on a year-over-year basis on continued demand for artificial intelligence.

On a per-share basis (non-IFRS), the multinational earned 81 cents in Q1 – up 8.0% versus the same quarter of 2023. CEO Klein also said in the earnings report on Monday:

Note that analysts had forecast the European firm to report €8.03 billion in revenue on €1.04 of earnings per share. Wall Street currently has a consensus “overweight” rating on $SAP that pays a dividend yield of 1.34% at writing.