The Sage Group plc
Trading update for the three months ended 31 December
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 three months ended 31 December 2024[1].
Jonathan Howell, Chief Financial Officer,
commented:
"Sage has made a strong start to the year, achieving
broad-based revenue growth in line with expectations, despite the
ongoing macroeconomic uncertainty. We're innovating across our
platform to deliver productivity and insights to small and
mid-sized businesses, transforming their workflows through our
products and AI-powered solutions. We reiterate our guidance for
the full year, as set out in our FY24 results announcement, as we
continue to focus on efficiently scaling the
Group."
|
Underlying Revenue Performance[2]
|
Q1 25
|
Q1 24
|
% Growth
|
Organic
% Growth
|
|
|
|
|
|
|
|
Total Revenue
|
£612m
|
£558m
|
+10%
|
+9%
|
|
of which Sage Business
Cloud
|
£502m
|
£443m
|
+13%
|
+13%
|
|
|
|
|
|
|
|
Total Revenue by Region
|
|
|
|
|
|
North America
|
£279m
|
£250m
|
+11%
|
+11%
|
|
UKIA
|
£176m
|
£162m
|
+9%
|
+9%
|
|
Europe
|
£157m
|
£146m
|
+8%
|
+7%
|
|
|
|
|
|
|
Total
revenue increased by 10% to £612m in the first quarter, with all
regions contributing to growth.
In North America, revenue increased
by 11% to £279m, with a good performance from Sage Intacct together
with continued growth in Sage 50 and Sage 200. In the UKIA region,
revenue grew by 9% to £176m, driven by Sage Intacct together with
cloud solutions for small businesses (including Sage Accounting and
Sage Payroll), alongside further growth in Sage 50 and Sage 200. In
Europe, revenue increased by 8% to £157m, with a strong performance
across our accounting, HR and payroll solutions.
Sage Business Cloud revenue
increased by 13% to £502m, driven by balanced growth from both new
and existing customers, including cloud native revenue growth of
22% to £208m (Q1 24: £170m).
Recurring revenue grew by 10% to
£595m (Q1 24: £540m), reflecting continued momentum in Annualised
Recurring Revenue (ARR) during the quarter. Software subscription
revenue grew by 12% to £509m (Q1 24: £455m) resulting in
subscription penetration of 83% (Q1 24: 82%).
On an organic basis (excluding the
impact of M&A), total revenue increased by 9% to £611m (Q1 24:
£560m), while recurring revenue increased by 10% to £594m (Q1 24:
£542m).
Foreign exchange
Sterling strengthened against the US
dollar and other international currencies compared with the prior
period, leading to an exchange rate headwind.
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/uf66bh7b.
To join the conference call, please register
via:
https://register.vevent.com/register/BI0186d0df8833490eb389b3f1c06f9fe4.
Enquiries
Sage
+44 (0) 77721 599502
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.
