LONDON (dpa-AFX) - British enterprise software company The Sage Group Plc (SGE.L), Wednesday said in its trading update for the nine months ended June 30 that total revenue grew 9 percent to 1.862 billion pounds, with strong growth being reported across all regions.
On the LSE, the stock is up 3 percent on Wednesday's trading at 1,287.50 pence.
On an organic basis, excluding the impact of mergers and acquisitions, total revenue for the period also rose 9 percent to 1.860 billion pounds, while recurring revenue came in at 1.80 billion pounds.
In North America, revenue grew by 11 percent to 846 million pounds, driven by a strong performance from Sage Intacct, along with continued growth in Sage 200 and Sage 50. In the UKIA region, revenue increased 9 percent to 539 million pounds, supported by rapid scaling of Sage Intacct and steady growth in small business solutions such as Sage Accounting, Sage 50, and Sage 200.
In the European region, revenue came in at 477 million pounds, a 7 percent growth helped by strong performances in accounting, HR, and payroll products.
According to the company, Sage Business Cloud revenue grew by 13 percent to 1.54 billion pounds, helped by growth from both new and existing customers. Within this, cloud native revenue saw a 22 percent growth to touch 645 million pounds from last year's 528 million pounds.
Sage Group said that during the nine-month period, recurring revenue climbed 10 percent to 1.81 billion pounds, reflecting strong momentum in Annualised Recurring Revenue or ARR. Software subscription revenue grew 11 percent to 1.55 billion, leading to a subscription penetration rate of 83 percent higher than that in fiscal 2024.
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