SAP SE (SAP) CEO Christian Klein on Q2 2022 Results - Earnings Call Transcript

SAP SE (NYSE:SAP) Q2 2022 Earnings Conference Call July 21, 2022 8:00 AM ET

Company Participants

Anthony Coletta - Chief IR Officer

Christian Klein - CEO

Luka Mucic - CFO

Scott Russell - Customer Success

Conference Call Participants

Frederic Boulan - Bank of America

Amit Harchandani - Citigroup Inc.

Adam Wood - Morgan Stanley

Johannes Schaller - Deutsche Bank

Mohammed Moawalla - Goldman Sachs

Michael Briest - UBS

Mark Moerdler - Sanford C. Bernstein

Operator

Good day, and welcome to the SAP Q2 2022 Earnings Conference Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Anthony Coletta, Chief Investor Relations Officer. Please go ahead, sir.

Anthony Coletta

Thank you, and welcome, everyone. Thanks for joining us today on our earnings call to discuss SAP's Q2 and first half 2022 results. On our Investor Relations website, you can find the deck supplementing today's call.

With me today are CEO, Christian Klein; and CFO, Luka Mucic, will make opening remarks. Scott Russell, who leads our Customer Success organization, is also with us for Q&A.

Now let's do the safe harbor. During this call, we'll make forward-looking statements, which are projections or other statements about future events. These statements are based on current expectations, forecasts 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 2021. Unless otherwise stated, all financial numbers on this call are non-IFRS. Growth rates and percentage point changes are non-IFRS year-over-year 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.

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

Christian Klein

Yes. Thank you, Anthony, and thanks to all of you for joining today. This has been a good quarter for SAP despite the challenging political and macroeconomic environment. Our cloud and total revenue have exceeded market expectations and are progressing faster than we expected at 34% and 13% nominal, respectively.

Our top line cloud performance is clearly ahead of plan, further accelerated by the current macroeconomic environment and currency tailwinds. Customers are actually turning to us now more than ever to help them address their most pressing concerns, business model transformation and process automation, supply chain resilience and sustainable operations. We see demand for SAP technology continuing to increase with an increased focus on transforming and automating mission-critical business processes and the core functions of an enterprise.