BusinessTech

Sage revenues rise 8% to £429m in Q1

Sage’s new customer acquisitions and growth in its cloud connected portfolio led to a 44% rise in cloud native revenue

The Sage Group plc has reported its recurring revenues grew by 8% to £429m in the three months ending 31 December 2021 (Q1 FY22) compared to £398m in Q1 FY21, underpinned by a 21% rise in Sage Business Cloud revenue to £280m and new customer acquisitions.

Overall, total group revenues increased year-on-year by 5% to £458m, compared to £398m in FY21.

Sage’s new customer acquisitions and growth in its cloud connected portfolio led to a 44% rise in cloud native revenues to £90m compared to £62m in Q1 FY21, and Sage Business Cloud penetration increased to 71%.

Software subscription revenues also increased by 13% to £336m from £296m in Q1 FY22, increasing subscription penetration to 73%.

In Northern Europe, recurring revenues reached £102m, up 7% from £96m in Q1 FY22, which Sage said is driven by “accelerating growth” in cloud native solutions, including Sage Accounting and Sage Intacct.

Meanwhile, on an international level, recurring revenues increased by 5% to £152m compared to £145m the year prior, with growth across Sage Business Cloud reportedly supported by further progress in migrations.

Other revenue, including software and software-related services and processing, decreased by 22% to £29m which Sage said is in line with its strategy to transition away from licence sales and professional services implementations.

Jonathan Howell, chief financial officer, said: “Sage has made a strong start to the year, accelerating growth in line with expectations.

“Sage Business Cloud has performed particularly well, driven by continued growth in both cloud native and cloud connected solutions, as we execute on our strategy to be the trusted network for small and mid-sized businesses. Accordingly, we reiterate our guidance for the full year, as set out in our FY21 results announcement.”

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