SAP (SAP) Financial Analyst Conference summary

Strategic Vision and Growth Drivers

• Strategy since 2020 has doubled cloud revenue to over €17bn and increased total cloud backlog by 40% YoY to over €63bn, with a focus on product innovation, go-to-market simplification, and people development.

• Embedded AI, Joule, and Business Data Cloud (BDC) are positioned as key differentiators, driving customer value and financial performance, with over 400 AI use cases targeted by end of 2025.

• Suite as a service and modular integration enable seamless end-to-end processes, supporting both large enterprises and SMEs.

• Expansion in mid-market and net new customers is a major growth lever, with reseller channels, simplified commercial models, and 60% of the addressable market in SMEs.

• Cross-sell and upsell within the installed base, especially through cloud migration, are expected to multiply revenue potential up to 5x, with 77% of customers using fewer than four solutions.

Product Innovation and Transformation

• SAP Business Suite integrates applications, data, and AI, offering industry-specific, networked, and sustainable solutions.

• Over 15,000 legacy SAP Business Warehouse customers are being moved to the cloud, expanding the addressable market.

• SAP Business Data Cloud and Knowledge Graph provide a unified data layer, supporting both SAP and non-SAP applications.

• 400+ AI use cases and 40+ new Joule Agents are being developed, with 14% project time savings and 250M+ lines of ABAP code optimized.

• SAP's partner ecosystem includes 1,500+ certified partners for Business Data Cloud and collaborations with major consultancies.

Go-to-Market and Customer Growth

• Cloud revenue from new customers since 2020 is on a strong upward trajectory, with €2bn annual cloud revenue from new logos.

• Upsell and cross-sell trends are positive, with a 50% increase in cloud revenue per cohort and 23% of customers now using four or more SAP cloud solutions.

• 80% of new customers are acquired through partners, and customer acquisition costs have dropped by over 10% since 2021.

• Simplified engagement models and automation have moved 40% of customers to digital-first engagement, reaching 400k accounts via partners.

• SME market is a significant opportunity, addressed through scalable products, reseller channels, and industry cloud verticals.