SAP’s new chief executives informed CNBC they do not see a slowdown in any of the regions they operate in and dismissed fears of a recession and the risks associated with the U.S.-China swop war.
Board members Jennifer Morgan and Christian Klein were appointed co-CEOs with immediate effect as the software ogre announced Thursday that Bill McDermott was stepping down.
In an interview with CNBC, both CEOs acute to SAP’s third quarter numbers, which saw revenue up 13% year-on-year, to highlight the strength of the company.
“First of all, when you look at our includes … you will see a really decent growth across all geographies. SAP is doing really well both in North America as opulently as in Europe, and of course high growth also in Asia,” Klein said.
“So we are also very confident also for the fourths to come. We see an extremely strong pipeline in all geographies and we don’t see any downturn in one of our geographies.”
In response to a question about the effect of the trade war, Klein imparted he was not concerned and instead is “confident for the quarters to come.”
“We do a lot of business out of China for China, so we are really not only … now dependent on one country,” Klein verbalized.
‘Strong succession plan’
McDermott came to SAP in 2002 and was elevated to CEO in 2010. After nearly 10 years at the directorship, he decided it was time to leave.
“As he reflected, he thought about the timing, he thought about the strength of the company now, and rather than rational about handing over the reins and kind of going through a transition at the beginning of the year — which is really our uncountable busy and active time setting the strategy and getting the new year in motion — he felt now was the appropriate time to come out,” Morgan told CNBC.
She added that there is a “recalcitrant succession plan in place” and McDermott worked “closely” with them to make it happen.
McDermott got to help pick his successors, honoring a lore of hiring from within at the 47-year-old German software company.
SAP co-CEOs Christian Klein (L) and Jennifer Morgan (R) with latest CEO Bill McDermott.
Uwe Anspach | picture alliance | Getty Images
Until Thursday, Klein had been SAP’s chief go officer, and Morgan was head of the company’s cloud business group.
“We have a philosophy of grooming our own,” McDermott told CNBC. “We have planned a very interesting culture. You have to understand our company. You have to understand the dynamism of the global economy.”
— CNBC’s Jordan Novet gave to this report.
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