SAP SE (SAP) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 20, 2023 1:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the SAP Q2 2023 Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to Anthony Coletta, Chief Investor Relations Officer. Please go ahead.

Anthony Coletta

Good day, everyone, and welcome. Thank you for joining us. With me today are CEO, Christian Klein; CFO, Dominik Asam and Scott Russell, who leads Customer Success.

On this call, we will discuss SAP's Q2 and first half 2023 results. You can find the deck supplementing this call as well as our quarterly statement on our Investor Relations website.

During this call, we'll make forward-looking statements, which are predictions, projections or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission including, but not limited to the Risk Factors section of SAP's annual report on Form 20-F for 2022.

Unless otherwise stated, all numbers on this call are non-IFRS and growth rates, percentage point changes and our 2023 financial outlook are non-IFRS at constant currencies. The non-IFRS financial measures we provide should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with IFRS.

Before we start, I would like to remind you that SAP completed the sale of its stake in Qualtrics in June of this year. Therefore, all figures shared on this call are based on SAP Group results from continuing operations.

And with that, I'd like to turn the call over to Christian.

Christian Klein

Yes. Thank you, Anthony. And as always, thanks for joining us for our earnings call today. This has been a good Q2. At the halfway point of 2023 SAP continues to perform well despite a macroeconomic environment that remains uncertain. After reaching the turning point in our transformation, our sharpened focus has yielded real momentum, and we are seeing strong demand across our portfolio. Customers are looking to our game-changing solutions to foster sustainable end-to-end business processes across diverse industries on a global scale.

It is also worth pausing on the watershed moment we're experiencing with generative AI. It's clear that generative AI will fundamentally change the way businesses run. In the business world, no one is better positioned than SAP to empower businesses to take advantage of this transformational moment, giving them the solutions to harness AI to improve business outcomes. We believe we are uniquely placed to become the leader in business AI. At our most recent Sapphire conference in May, we shared specifics of our AI approach with SAP Business AI. later on in my remarks today, I will talk in more detail about our ambitions on this front.