SAP Expects To Exit 2024 At Headcount Similar To Year-End 2023
Portfolio Pulse from Benzinga Newsdesk
SAP anticipates maintaining its headcount in 2024, similar to the end of 2023, while projecting significant growth in cloud revenue, cloud and software revenue, and non-IFRS operating profit. The company expects cloud revenue to increase by 24% to 27%, cloud and software revenue by 8% to 10%, and non-IFRS operating profit by 17% to 21%, all at constant currencies. However, free cash flow is projected to decrease to approximately €3.5 billion from €5.09 billion in 2023, with an effective tax rate increase to 32% from 30.3%.
April 22, 2024 | 8:24 pm
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SAP projects significant growth in cloud and software revenues for 2024, with an increase in non-IFRS operating profit but expects a decrease in free cash flow and a higher effective tax rate.
The projected growth in cloud and software revenues, along with an increase in non-IFRS operating profit, indicates a positive outlook for SAP's financial performance in 2024. However, the expected decrease in free cash flow and an increase in the effective tax rate could present challenges. The overall positive growth projections are likely to be viewed favorably by investors, potentially leading to a short-term positive impact on SAP's stock price.
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