Proactive Investors - Run By Investors For Investors

Sage Group's organic revenue growth picks-up

Sage was late in switching to a software-as-a-service model but the idea seems to be taking hold now
Sage Group display
Software subscription revenue increased by 25.0% in the first nine months of the fiscal year

Organic revenue growth picked up in the fiscal third quarter at The Sage Group PLC (LON:SGE), the accountancy software giant.

The group’s like-for-like year-on-year revenue increased 6.8% in the third quarter, raising the growth rate for the first nine months of the trading year (which runs to the end of September) to 6.6%.

READ: Sage Group's first half profits fall as organic revenue growth misses expectations

The pick-up was welcomed by the City after the firm had disappointed in the second quarter with an organic growth rate of 8.3%. The shares were up 1.9% at 637.2p in mid-morning trading.

Software and software-related services (SSRS) revenue increased by 7.7% in the three months to the end of June from the same period of 2017, reflecting continued strong performance in training and services, offset by a decline in licence revenue as the business makes the transition to a subscription-based model.

"We have delivered acceleration in both organic and recurring revenue growth, demonstrating the impact of our primary focus on driving high-quality recurring revenue growth through Sage Business Cloud,” said Steve Hare, the chief financial officer of Sage.

The Sage Business Cloud’s annualised recurring revenue rose to £386mln, up from £336mln at the start of the quarter and up 56% year on year.

“We remain confident of achieving full year FY18 guidance of around 7% organic revenue growth and around 27.5% organic operating margin," Hare added.

View full SGE profile View Profile

Sage Group Timeline

Related Articles

location map
April 02 2019
Verify helps brands detect location ad-fraud and verify the authenticity of location data to ensure their campaigns are targeting the areas they are supposed to
StatPro Revolution
May 24 2019
On 20 May the company secured a three-year contract extension for its Revolution platform from a top 20 fund administrator carrying a price tag of at least £2.44mln
Phone with apps
May 16 2019
The company owns and operates a scalable B2B SaaS platform that allows users to distribute their mobile apps across multiple app stores such as Google Play

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use