Skip to Content
chart ticker

Investment Story

In the digital era, businesses that are able to harness their data faster and more effectively will be the ones that succeed through disruption.

Customers powered another quarter of strong cloud growth as they turned to us for solutions to make their businesses more sustainable, their supply chains more resilient, and their enterprises more future-proof. Our signature ERP offering SAP S/4HANA grew at record levels demonstrating the confidence customers place in us to support their business transformations.

Christian Klein, CEO

We are off to a solid start to the year and our outlook remains strong. Despite the current macroeconomic environment, cloud revenue growth accelerated further, fueling total revenue growth. Current cloud backlog grew at a healthy rate and continues to support our confidence in our long-term plans and outlook for the year.

Luka Mucic, CFO

Financial Performance

Group results at a glance – First Quarter 2022

€ million, unless otherwise stated Q1 2022 Q1 2021 ∆ in % Q1 2022 Q1 2021 ∆ in % ∆ in %
const. curr.
Cloud revenue 2,820 2,145 31 2,820 2,145 31 25
Software licenses 317 483 −34 317 483 −34 −36
Software support 2,923 2,801 4 2,923 2,801 4 1
Software licenses and support revenue 3,240 3,283 −1 3,240 3,283 −1 −4
Cloud and software revenue 6,060 5,428 12 6,060 5,428 12 7
Total revenue 7,077 6,348 11 7,077 6,348 11 7
Share of more predictable revenue (in %) 81 78 3pp 81 78 3pp  
Operating profit (loss) 1,053 960 10 1,677 1,738 −4 −7
Profit (loss) after tax 632 1,070 −41 1,166 1,720 −32  
Earnings per share - Basic (in €) 0.63 0.88 −29 1.00 1.40 −28  
Earnings per share - Diluted (in €) 0.63 0.88 −29 NA NA NA  
Net cash flows from operating activities 2,482 3,085 −20 NA NA NA  
Free cash flow NA NA NA 2,165 2,848 −24  
Number of employees (FTE, March 31) 109,798 103,142 6 NA NA NA NA

1 For a breakdown of the individual adjustments see table “Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.

Due to rounding, numbers may not add up precisely.

Cloud Performance

€ millions, unless otherwise stated Q1 2022   in % Q1 2022   in %   in %
const. curr.
Current Cloud Backlog          
SAP S/4HANA2 NA NA 1,925 86 79
Total2 NA NA 9,731 28 23
Cloud Revenue          
SaaS/PaaS 2,585 34 2,585 34 28
SaaS/PaaS - Intelligent Spend 808 23 808 23 16
SaaS/PaaS - Other 1,776 40 1,776 40 34
IaaS 235 10 235 10 5
Total 2,820 31 2,820 31 25
thereof SAP S/4HANA 404 78 404 78 71
thereof Qualtrics 269 69 269 69 58
Cloud gross profit          
SaaS/PaaS 1,858 36 1,909 34 28
SaaS/PaaS - Intelligent Spend 652 27 653 27 20
SaaS/PaaS - Other 1,206 41 1,257 39 33
IaaS 63 −9 65 −9 −7
Total 1,922 33 1,974 32 26
thereof Qualtrics 207 70 241 64 53
Cloud gross margin (in %)          
SaaS/PaaS (in %) 71.9 0.9pp 73.9 0.3pp 0.2pp
SaaS/PaaS - Intelligent Spend 80.7 2.5pp 80.7 2.4pp 2.2pp
SaaS/PaaS - Other 67.9 0.6pp 70.7 −0.3pp −0.4pp
IaaS (in %) 26.9 −5.6pp 27.6 −5.7pp −3.8pp
Total 68.2 1.0pp 70.0 0.5pp 0.5pp
thereof Qualtrics 76.9 0.4pp 89.6 −2.6pp −2.7pp

1 For a breakdown of the individual adjustments see table „Non-IFRS Adjustments by Funcional Areas” in this Quarterly Statement

2 As this is an order entry metric, there is no IFRS equivalent

Due to rounding, numbers may not add up precisely

Impact of War in Ukraine

In the first quarter, SAP’s business was impacted by the war in Ukraine. At the beginning of March, SAP stopped all new sales in Russia and Belarus. In addition, SAP started to shut down its cloud operations and intends to stop the support and maintenance of its on-premise products in Russia. Current cloud backlog was lowered by approximately €60 million due to the termination of existing cloud engagements, and operating profit by approximately €70 million due to reduced on-premise revenues, accelerated depreciation of data center assets and capitalized sales commissions. 

For the fiscal year, we expect a total negative revenue impact of approximately €300 million from lack of new business and discontinuation of existing business, in particular software and support and services. For non-IFRS operating profit we expect an impact of approximately €350 million from the revenue gaps mentioned above and other expense items.

In addition to the above, the company expects to incur restructuring expenses of approximately €80-100 million for the fiscal year which will not affect non-IFRS results.

Despite these headwinds, the cloud performance allows SAP to reaffirm its cloud revenue, cloud and software revenue as well as non-IFRS operating profit and free cash flow outlook. The reiteration of the non-IFRS operating profit outlook reflects the benefits of a continued strong cloud revenue growth, operational discipline and portfolio streamlining measures.

Other impacts due to this rapidly evolving situation are currently unknown and could potentially subject our business to materially adverse consequences should the situation escalate beyond its current scope.

Financial Highlights


Current cloud backlog was up 28% to €9.73 billion and up 23% at constant currencies. The war in Ukraine reduced current cloud backlog growth at constant currencies by 0.8 percentage points.


Supported by double-digit growth across the solution portfolio, cloud revenue growth continued to accelerate for the fourth consecutive quarter and was up 31% to €2.82 billion, up 25% at constant currencies. 


Amidst continuing investments into our next generation cloud delivery program our cloud gross margin was up 1.0 percentage points year over year to 68.2% (IFRS) and up 0.5 percentage points year over year to 70.0% (non-IFRS). Revenue growth, alongside cloud gross margin expansion, drove strong cloud gross profit growth of 33% (IFRS), 32% (non-IFRS) and 26% (non-IFRS at constant currencies).


IFRS operating profit increased 10% to €1.05 billion, primarily driven by lower restructuring expenses. Non-IFRS operating profit decreased 4% to €1.68 billion and decreased 7% at constant currencies. This decrease against a very strong prior year comparable was mainly driven by expenses related to the war in Ukraine, as well as accelerated investments into research & development and sales & marketing to capture current and future growth opportunities. 


IFRS earnings per share (basic and diluted) decreased 29% to €0.63 and non-IFRS earnings per share (basic) decreased 28% to €1.00. The year over year decline of earnings per share reflects a contribution to financial income by Sapphire Ventures that was lower than over the same period last year based on current market conditions.


Free cash flow was down 24% to €2.16 billion, mainly attributable to the development of profitability in the quarter and impacts from working capital due to SAP’s continuous move to the cloud, and lower software licenses sales in the fourth quarter 2021. The ongoing business transformation provides more balance of cash inflows throughout the year, and we are reiterating our full year free cash flow outlook. 


On January 13, SAP announced a new share repurchase program to support the transition of SAP’s share-based compensation programs to equity settlement. By March 31, SAP had repurchased 5,680,250 shares at an average price of €102.26 with a purchased value of approximately €581 million.

Business Highlights

More than 500 customers chose SAP S/4HANA in the quarter, taking total adoption to more than 19,300 customers, up 18% year over year, of which more than 13,900 are live. In the first quarter, more than 60% of the additional SAP S/4HANA customers were net new.

In the first quarter, customers around the globe chose “RISE with SAP” including Accenture, Canon Production Printing, Citizen Watch Company, Daimler Truck AG, Grupo Estrella Blanca, Exide Industries Limited, NEC Corporation, Ooredoo Group, Qinqin Food, Rising Auto, TELUS, Tramontina, and Wipro Limited. Key customer wins across SAP’s solution portfolio included: Air France-KLM, FEMSA, Heineken, L’Oréal, Merck KGaA, MLP, Nippon Telephone and Telegraph Corporation, NHS Shared Business Services, PetSmart, Pick n Pay, Salling Group, Schaeffler, and Swellfun. Further, PT United Tractors, Schwarz Produktion and Vodafone New Zealand all went live on SAP solutions in the first quarter.

Microsoft announced it would become the first public cloud provider to adopt “RISE with SAP” and SAP S/4HANA to transform its own SAP ERP deployment. Adopting these solutions will enable Microsoft to deploy new technologies faster and establish best practices that benefit our joint customers. 

SAP’s cloud revenue performance for the quarter was excellent across all regions. The United States and Germany had an outstanding cloud revenue performance while Japan, China, Brazil, Canada, Switzerland, France, and the UK were particularly strong.

SAP proposed a dividend of €2.45 per share for fiscal year 2021 representing a year-over-year increase of approximately 32%. This amount includes a special dividend of €0.50 to celebrate SAP’s 50th anniversary. The dividend is subject to shareholder approval at the upcoming AGM scheduled for May 18, 2022.

On March 9, SAP announced that it had completed the acquisition of a majority stake of Taulia, a leading provider of working capital management solutions. Taulia further expands SAP’s Business Network and strengthens SAP’s solutions for the CFO office by providing working capital management cloud solutions. 

On March 22, SAP and global strategic consultancy BCG announced a partnership to help companies transform their business models, become sustainable enterprises, and gain the data transparency they need to embed sustainability into their core business. The partnership combines SAP’s strength as the leading enterprise software company with BCG’s proven expertise in advising clients on their sustainability transformation strategies. The SAP and BCG sustainability transformation offering is in pilot phase, with an expected broader launch in the third quarter of 2022.

On March 28, SAP announced that the SAP Signavio brand will represent our portfolio of Business Process Management solutions. SAP also announced general availability of the SAP Signavio Journey to Process Analytics. The new offering correlates experience data from Qualtrics user surveys with operational data from underlying IT systems, giving companies the ability to understand how best to optimize their end-to-end business processes for both operational excellence and customer experience. 

Segment Results at a Glance

At the beginning of 2022, the Services segment was integrated into the former Applications, Technology & Support segment which was re-named to Applications, Technology & Services. 


Therefore, SAP now has two reportable segments: the Applications, Technology & Services segment and the Qualtrics segment.

Segment Performance First Quarter 2022

€ million, unless otherwise stated
Applications, Technology & Services1 Qualtrics
∆ in % ∆ in %
const. curr.
∆ in % ∆ in %
const. curr.
Cloud revenue 2,495 28 22 269 69 58
Segment revenue 6,695 10 6 320 58 48
Segment profit (loss) 2,168 −4 −7 10 −22 −12
Cloud gross margin (in %) 67.8 0.1pp 0.2pp 89.6 −2.6pp −2.7pp
Segment margin (in %) 32.4 −4.5pp −4.6pp 3.1 −3.2pp −2.5pp

1 Segment information for comparative prior periods were restated to conform with the new segment composition.

SAP’s two reportable segments showed the following performance: 


Applications, Technology & Services (AT&S)


Segment revenue in AT&S was up 10% to €6.70 billion year over year, up 6% at constant currencies. Segment performance was driven by strong double-digit cloud revenue growth in SAP S/4HANA as well as Business Technology Platform. Software licenses revenue decreased due to the shift to the cloud as more customers are adopting our ‘RISE with SAP’ offering. Segment support revenue was up 4% to €2.92 billion year over year and up 1% at constant currencies.




Qualtrics segment revenue was up 58% to €320 million year over year, up 48% at constant currencies. The continued strong growth was driven by robust renewal rates and expansions. Australian Taxation Office, Chipotle, EY, Google Cloud, Grubhub, Hyundai Motor Asia Pacific, Kroger, Microsoft, National Australia Bank, Royal Mail Group, and Shiseido Company, among others, selected Qualtrics Experience Management Solutions. 

Back to top