SAP is a German technology company that should benefit more from the mitigation of quarantine measures than many other developers. Its solutions make it possible to simplify the management of internal processes. In particular, with the help of SAP Concur, firms can manage business trips and related expenses. Now the developer's shares are trading 17% below the highs of 2020.
SAP is an extremely stable and large company. As practice shows, such players tend to be late with innovations. Nevertheless, in the case of a successful business renewal, they receive an additional boost for growth, which means that they are of increased interest to investors. At the moment, SAP transfers a significant part of its revenue on a regular basis (monthly payment). This process contributes to an increase in the company's share in the ERP market, which has increased from 11.9% to 12.3% since 2018. Thanks to a competent M&A strategy, SAP has achieved leadership in many industries through purchases: Concur, Ariba, Qualtrics, etc.
SaaS transformation allows you to increase income in the long term and has a positive effect on the balance sheet. As an example, we can name such companies as Adobe, Autodesk and many others. By 2025, management plans to triple the size of the “cloud " business. However, in the short term, the change in the monetization model leads to a decrease in revenue: in the second quarter, it decreased by 1% y/y, to 6.67 billion rubles.