Sap Se - SAP STOCK NEWS

SAP SE (NYSE: SAP) reported its Q1 2023 financial results, highlighting a 24% increase in cloud revenue to €3.18 billion, driven by a 77% surge in S/4HANA cloud revenue to €716 million. The current cloud backlog rose 25% to €11.15 billion. While IFRS operating profit fell 45% to €803 million due to restructuring and compliance costs, non-IFRS operating profit increased by 12% to €1.87 billion. Earnings per share from continuing operations dropped 60% to €0.35. The financial outlook for 2023 anticipates cloud revenue growth of 23% to 26% and non-IFRS operating profit of €8.6 to €8.9 billion. Additionally, SAP is updating its guidance to reflect the anticipated divestiture of Qualtrics. The results reflect SAP's strategic transformation, focusing on cloud solutions.

SAP has committed to achieving net-zero emissions by 2030, aligning with global climate objectives set forth in the Paris Agreement. This commitment involves reducing emissions across its entire value chain, consistent with the guidance from the Science Based Targets initiative (SBTi). Over 1,800 companies have made similar pledges. The SBTi provides a framework for companies to establish credible, science-based targets aimed at limiting global warming to 1.5°C. Key emissions from operations (Scope 1), purchased energy (Scope 2), and indirect emissions (Scope 3) must be addressed. A critical challenge remains in effectively managing Scope 3 emissions. Achieving net-zero requires significant investments and collaboration, amidst an urgent global need for climate action, as indicated by the latest IPCC report showing a 1.1°C rise in global temperatures.

SAP SE (NYSE: SAP) announced on April 19, 2023, that AMD (NASDAQ: AMD) has successfully migrated to SAP S/4HANA® Cloud, marking a significant milestone in their long-standing partnership. This migration is integral to AMD's digital transformation strategy, consolidating their operations onto a single enterprise platform. AMD's use of SAP solutions like Ariba, Signavio, and SuccessFactors has driven this transition, aiming to enhance productivity and innovation. RISE with SAP will streamline AMD's infrastructure and support improvements in intelligent spending, human experience management, and digital supply chain capabilities. AMD aims to future-proof its business through this integration, leveraging exceptional performance from its EPYC™ server processors.

SAP has launched a new course titled Designing a Circular Economy on openSAP, aimed at addressing the urgent global waste crisis. Less than 8% of the 100 billion tons of materials consumed annually are reused, and the need for action is critical. This course emphasizes the importance of circular design in product development, which can significantly reduce environmental impacts. With new regulations pushing for a transition to a circular economy, the course will educate participants on redesigning products to eliminate waste and pollution. It kicks off on May 23, 2023, and is free for anyone interested. SAP aims to leverage technology to support businesses in adopting circular practices and achieving sustainability goals.

SAP has reaffirmed its commitment to sustainability by partnering with EKOenergy to promote the use of 100% renewable electricity. This collaboration aims to help organizations transition to renewable energy, enhancing resilience against rising energy costs. SAP has been utilizing renewable electricity for its data centers and offices since 2014, and its partnership with EKOenergy involves a contribution of €0.10 per megawatt hour to EKOenergy's Climate Fund. Additionally, SAP aligns its sustainability efforts with the United Nations' Sustainability Development Goals and aims to achieve net-zero emissions by 2030.

The EKOenergy label, recognized internationally, is critical for validating renewable energy sources and preventing greenwashing, ensuring that energy production and consumption are credible and sustainable.

SAP is advancing its commitment to sustainability through a range of initiatives focused on electric vehicles (EVs). Launched in 2011, the Green Car policy offers subsidies for employees purchasing EVs, supported by charging stations at their Bengaluru campus. By 2022, 95% of cabs used for employee shifts were electric, with a goal of achieving a 95% green commute by the end of 2023. Currently, the campus hosts 65 charging stations and has introduced a self-driving electric vehicle for internal services. SAP Labs India also collaborates with Yulu for first- and last-mile connectivity and partnered with Ather Energy to promote EV use among its employees. The SAP E-Mobility solution aims to facilitate the transition to sustainable electric mobility, reflecting SAP's commitment to decarbonizing the transport sector.

SAP announced that Dutch chemical company Royal DSM has undertaken a global transformation of its procurement practices, using SAP Business Network and SAP Ariba solutions. This initiative aims to enhance sustainability in indirect procurement while achieving cost savings through its buy.SMART program. Key insights from DSM's journey include leveraging a business network for efficiency, utilizing independent sustainability ratings for supplier assessment, piloting in challenging markets like Brazil, standardizing processes, and prioritizing change management to ensure employee engagement and successful adoption of new technologies. By embedding sustainability into procurement, DSM aims to create a positive environmental and social impact.

FourKites announced the appointment of Rocky Subramanian as President, effective immediately. Subramanian, a veteran leader from Ceridian, SAP, and Oracle, will drive customer growth and digital supply chain transformation. CEO Mathew Elenjickal highlighted Subramanian's track record in scaling revenue organizations and championing diversity. Under his leadership, Ceridian saw revenues exceed $1.2B and SAP's unit grew to $1.8B. FourKites has achieved 70% growth in new customers in 2022, with over 1,200 brands, including 50% of the Fortune 500, now using its services.