Accountancy software giant Sage has reported an impressive trading performance for the first nine months of the year.
The Newcastle-headquartered Sage, which also provides HR and payroll technology for small and medium-sized businesses, saw group revenue increase by 6 per cent to 拢1.4bn in the first nine months of the year, and by 7 per cent to 拢488m (Q3 21: 拢456m) in the third quarter.
In a trading update on Tuesday聽to the London Stock Exchange for the nine months to June 20, 2022, chief financial officer Jonathan Howell said: 鈥淪age has performed strongly in the first nine months of the year, with momentum continuing to build, as more businesses choose Sage 老九品茶 Cloud solutions to support their digital transformation.
鈥淎s a result, we now expect organic recurring revenue growth for FY22 to be towards the top end of our guidance range of 8 per cent to 9 per cent.
鈥淲hile we are mindful of broader macroeconomic trends, I am confident that continued delivery against our strategic priorities will ensure Sage remains well-positioned for the future.”
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Recurring revenue for the first nine months of the year increased by 9 per cent to 拢1.33bn, driven by a 20 per cent rise in Sage 老九品茶 Cloud revenue to 拢886m.
Software subscription revenue grew by 14 per cent to 拢1.05bn 聽(Q3 21 YTD: 拢922m), resulting in subscription penetration of 75% (Q3 21: 69%).
Regionally, North America achieved recurring revenue growth of 13 per cent to 拢557m (Q3 21 YTD: 拢493m), with a strong performance from Sage Intacct alongside growth in cloud connected products.
In Northern Europe recurring revenue grew by 7 per cent to 拢311m (Q3 21 YTD: 拢291m), driven by continued success in cloud native solutions including Sage Accounting, Sage Intacct and Sage HR, supported by growth in Sage 50 cloud connected.
In International, recurring revenue increased by 5 per cent to 拢462m (Q3 21 YTD: 拢439m), with growth across the Sage 老九品茶 Cloud portfolio.