The Sage Group plc
Trading update for the nine months ended 30 June
2024
The Sage Group plc (FTSE: SGE), a
leader in accounting, financial, HR and payroll technology for
small and mid-sized businesses, today issues a trading update for
the nine months ended 30 June 2024[1].
Jonathan Howell, Chief Financial Officer,
commented:
"Sage performed well in the first nine months, delivering
revenue growth in line with our expectations and sustaining good
momentum, despite ongoing macroeconomic uncertainty. Accordingly,
we reiterate our guidance for the full year, as set out in our half
year results announcement. Our continued success in transforming
the workflows of small and mid-sized businesses, supported by our
focus on innovation and investment in AI, underpins confidence in
our strategy to deliver sustainable, efficient
growth."
Underlying Revenue Performance[2]
|
Q3 24 YTD
|
Q3 23 YTD
|
Growth
|
Organic
Growth
|
|
|
|
|
|
Total Revenue
|
£1,737m
|
£1,589m
|
+9%
|
+9%
|
of which Sage Business
Cloud
|
£1,387m
|
£1,192m
|
+16%
|
+16%
|
|
|
|
|
|
Total Revenue by Region
|
|
|
|
|
North America
|
£786m
|
£699m
|
+12%
|
+12%
|
UKIA
|
£497m
|
£460m
|
+8%
|
+8%
|
Europe
|
£454m
|
£430m
|
+6%
|
+6%
|
|
|
|
|
|
Sage's
revenue grew by 9% to £1,737m in the first nine months of the year.
Regionally, revenue in North America increased by 12% to £786m,
with a good performance from Sage Intacct together with continuing
growth in Sage 50 cloud and Sage 200 cloud. In the UKIA region,
revenue grew by 8% to £497m, driven by Sage Intacct together with
cloud solutions for small businesses (including Sage Accounting and
Sage Payroll), alongside further growth in Sage 50 cloud and Sage
200 cloud. In Europe, revenue increased by 6% to £454m, with a
strong performance across our accounting, HR and payroll
solutions.
Sage Business Cloud revenue
increased by 16% to £1,387m, driven by growth in cloud native
revenue of 23% to £539m (Q3 23 YTD: £437m) primarily through new
customer acquisition, and by growth in cloud connected revenue from
both existing and new customers.
Recurring revenue increased by 10%
to £1,680m (Q3 23 YTD: £1,522m), with software subscription revenue
growth of 13% to £1,419m (Q3 23 YTD: £1,254m) resulting in
subscription penetration of 82% (Q3 23 YTD: 79%).
In the third quarter, total revenue
increased by 9% to £585m (Q3 23: £537m), driven by continued growth
across the Sage Business Cloud portfolio.
Foreign exchange
Sterling has strengthened against
the US Dollar and other international currencies compared with the
prior period, leading to an exchange rate headwind in the first
nine months of the year.
Analyst and investor conference call
Jonathan Howell will host a webcast
and conference call today at 8.30am UK time. The webcast can be
accessed via the following link: https://edge.media-server.com/mmc/p/25yejai9.
To join the conference call, please register via:
https://register.vevent.com/register/BIe0618c320983447c8383874122873450.
Enquiries
Sage
+44 (0) 7341 479956
Jonathan Howell, Chief Financial
Officer
James Sandford, Investor Relations
David Ginivan, Corporate PR
FGS
Global +44 (0) 20 7251 3801
Conor McClafferty
Sophia Johnston
About Sage
Sage exists to knock down barriers
so everyone can thrive, starting with the millions of small and
mid-sized businesses (SMBs) served by us, our partners and
accountants. Customers trust our finance, HR and payroll software
to make work and money flow. By digitising business processes and
relationships with customers, suppliers, employees, banks and
governments, our digital network connects SMBs, removing friction
and delivering insights. Knocking down barriers also means we use
our time, technology and experience to tackle digital inequality,
economic inequality and the climate crisis.