SAP Reports Cloud Growth in 2022
⇨ Cloud revenue continued to be SAP's main growth driver, increasing by 24%.
⇨ SAP ceased sales in Russia and Belarus.
⇨ SAP met all their outlook metrics in 2022 with total revenue growing 5%.
SAP CEO Christian Klein recently delivered his annual letter to stakeholders, saying, “2022 was one of the most important years in our history.”
This year also marked the 50th anniversary of SAP, during which time the company met all its outlook metrics in 2022, with total revenue growing 5% and with free cash flow at €4.35 billion.
2022 was an erratic year, with technology stocks facing strong headwinds. The pandemic, war in Ukraine, climate change, the energy crisis, inflation, and volatile markets created unexpected challenges for SAP.
“The last year was a stark reminder that no one business, government, or society can tackle the greatest challenges of our time alone,” wrote Klein, adding, “For that, a change is needed, and technology plays a key role in finding solutions to our global challenges.”
Amid these conditions, SAP’s share price decreased 22.8% in 2022. Still, the company has proposed an annual dividend of €2.05 per share, an increase of approximately 5% over the prior year’s regular dividend.
The company stopped all sales in Russia and Belarus, and it is in the process of a total withdrawal from these markets. For 2023, while business wind-down continues, SAP’s focus is on further reducing its remaining footprint in Russia.
In 2022, cloud revenue continued to be the company’s main growth driver, increasing by 24%. SAP began this journey to moving toward a cloud company two years earlier. An important part of this initiative has been the implementation of RISE with SAP to enable organizations to become agile, intelligent enterprises. The SAP Business Network connects millions of companies, allowing organizations to benefit from connected networks. SAP’s sustainability solutions enable organizations to truly operate sustainably.
Klein struck an optimistic note adding, “We believe that together with our customers, colleagues, and partners around the world, we can turn the world’s greatest challenges into opportunities for a prosperous and greener future.”