SAP SE (NYSE: SAP)
SAP SE (NYSE: SAP), on 22 April 2025 announced its Q1 2025 financial result. The company Q1 2025 results reflect strong growth and operational efficiency. The company reported a 28% growth in its current cloud backlog reaching €18.2 billion and a 27% increase in cloud revenue, which amounted to €4.99 billion. The Cloud ERP Suite saw an impressive 34% rise, bringing in €4.25 billion. Despite the surge in cloud business, software license revenue dropped by 10% to €0.18 billion. Overall, total revenue raised by 12% to €9.01 billion, driven by cloud and software services.
The company also experienced an improvement in profitability. IFRS operating profit increased to €2.33 billion through a substantial margin improvement of 35.7 percentage points, reaching 25.9%. Non-IFRS operating profit rose by 60%, totaling €2.46 billion. Operating cash flow climbed 31% to €3.78 billion. Free cash flow raised by 36% to €3.58 billion due to higher profitability and improved working capital management.
The company continues a strong outlook for 2025 by expected cloud revenue growth of 26% to 28% at constant currencies and a continued increase in cloud and software revenue. The company aims for non-IFRS operating profit growth of 26% to 30%, as well as approximately €8.0 billion in free cash flow. SAP remains careful, acknowledging the dynamic environment but expressing confidence in its ongoing transformation and AI powered portfolio to deliver robust results.
Zscaler Inc (NASDAQ: ZS)
Zscaler Inc (NASDAQ: ZS) posted strong growth in Q2 FY2025 Revenue increase by 23% year-over-year reaching $647.9 million. This surge was driven by rising demand for Zero Trust and AI-powered solutions, with calculated billings growing 18% to $742.7 million and deferred revenue climbing 25% to $1.88 billion. Despite a GAAP net loss of $7.7 million, Zscaler reported a 27% cash flow from operations, amounting to $179.4 million. The company continues to see a strong shift towards Zero Trust solutions as businesses modernize their security infrastructure.
The company current innovations include launching the first Zero Trust Segmentation solution for branches and cloud environments, aimed at preventing ransomware attacks and reducing infrastructure costs. The company also introduced Zero Trust Network Access integrated with RISE with SAP, simplifying cloud migration for SAP customers. Zscaler achieved FedRAMP authorization for its Zero Trust Browser and secured major customers like Nokia, which is transitioning from a traditional firewall-based security model to Zscaler's Zero Trust Exchange for enhanced security and efficiency.
Zscaler expects continued growth in the second half of fiscal 2025. The company forecasting a revenue range of $665 million to $667 million for Q3 and full year revenue of approximately $2.64 billion to $2.65 billion. Important drivers include expanding Zero Trust adoption, increasing salesforce productivity, and leveraging AI to enhance product development and customer demand, mostly in the growing parts of AI-driven security and digital experience analytics.
(Source: Company Announcements)
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