NEWCASTLE UPON TYNE (dpa-AFX) - Technology company Sage Group Plc (SGE.L) reported Wednesday that its first-quarter total Group revenue increased 5 percent organically to 458 million pounds from last year's 435 million pounds.
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.'
The company previously said it projects to achieve organic recurring revenue growth in the region of 8 percent to 9 percent in fiscal 2022, driven by continuing strength in Sage Business Cloud, and in cloud native revenues in particular. Organic operating margin is expected to trend upwards in fiscal 2022 and beyond.
In its trading update, the provider of accounting, financial, HR and payroll technology for small and mid-sized businesses said its recurring revenue grew 8 percent from last year to 429 million pounds, underpinned by a 21 percent rise in Sage Business Cloud revenue.
Software subscription revenue grew 13 percent to 336 million pounds.
Regionally, North America achieved growth in recurring revenue of 11 percent to 174 million pounds. In Northern Europe, recurring revenue increased 7 percent to 102 million pounds.
In International, recurring revenue increased 5 percent, with growth across Sage Business Cloud supported by further progress in migrations.
The Future Sage Business Cloud opportunity grew 10 percent to 394 million pounds.
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