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The Sage Group has reported a 9% increase in revenues to £1.73bn for the nine months ended 30 June 2024.
Regionally, North America delivered the strongest results, with revenues up 12% to £786m. This was driven by good performance from Sage Intacct together with continuing growth in Sage 50 cloud and Sage 200 cloud.
Meanwhile, 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.
Additionally, in Europe, revenue increased by 6% to £454m, with a strong performance across its accounting, HR and payroll solutions.
Of the total business revenue, Sage Business Cloud revenue increased by 16% to £1.38bn, 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 also increased by 10% to £1.68bn (Q3 23 YTD: £1.52bn), with software subscription revenue growth of 13% to £1.4bn (Q3 23 YTD: £1.25bn) resulting in subscription penetration of 82% (Q3 23 YTD: 79%).
Jonathan Howell, chief financial officer, said: “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.”
