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    Charles Brennan • Jefferies

    Charles Brennan's questions to SAP SE (SAP) leadership

    Charles Brennan's questions to SAP SE (SAP) leadership • Q2 2025

    Question

    Charles Brennan of Jefferies Financial Group asked why cloud revenue growth matched CCB growth, which is unusual, and inquired about the commercial model and potential materiality of the new Business Data Cloud (BDC).

    Answer

    CFO Dominik Asam explained that while the transactional business was dilutive to growth, its overall impact is diminishing. CEO Christian Klein stated that BDC can be sold with RISE deals, adding up to a 20-30% ACV uplift, or embedded in LOB solutions. He expects BDC to become a multi-billion dollar business within a few years.

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    Charles Brennan's questions to SAP SE (SAP) leadership • Q1 2025

    Question

    Charles Brennan of Jefferies requested a simple explanation of how the new Business Data Cloud differs from SAP Datasphere and whether it represents an incremental product or a rebranding.

    Answer

    CEO Christian Klein clarified that Business Data Cloud is a significant evolution beyond Datasphere. While Datasphere focused on technical data integration, Business Data Cloud provides a semantic layer to unify all business data (SAP and non-SAP), creating a true 360-degree view of entities like customers. He noted its pipeline momentum is as strong, if not stronger, than RISE at its launch.

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    Charles Brennan's questions to SAP SE (SAP) leadership • Q2 2024

    Question

    Charles Brennan asked if SAP faces a shortage of enterprise architects for its customers and sought clarification on how to model 2026 free cash flow based on the 2025 outlook.

    Answer

    CEO Christian Klein stated that SAP is not starting from zero with architects, but is actively reskilling existing staff and hiring externally, aided by the transformation program. CFO Dominik Asam confirmed the analyst's cash flow logic was sound but called it a 'prudent approach,' cautioning that the high resulting cash conversion rate would face headwinds from the tax effect on incremental profit.

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