Here is a summary of the trading update for The Sage Group plc for the first quarter ended December 31, 2024
Strong financial performanceSage Group plc reported strong financial results for the first quarter, with total revenue increasing by 10% to ยฃ612 million. All regions contributed to this growth.
North America and UKIA regionsIn North America, revenue increased by 11% to ยฃ279 million, while in the UKIA region, revenue grew by 9% to ยฃ176 million. Sage Intacct, cloud solutions, Sage 50, and Sage 200 performed well in these regions.
Europe regionRevenue from Europe increased by 8% to ยฃ157 million, driven by strong performance in accounting, HR, and payroll solutions.
Sage Business CloudRevenue from Sage Business Cloud increased by 13% to ยฃ502 million, with growth from both new and existing customers. Cloud native revenue grew by 22% to ยฃ208 million.
Recurring revenue and software subscription: Recurring revenue increased by 10% to ยฃ595 million, and software subscription revenue grew by 12% to ยฃ509 million, resulting in a subscription penetration of 83%.
Organic growthOn an organic basis, excluding the impact of M&A, total revenue increased by 9% to ยฃ611 million, and recurring revenue increased by 10% to ยฃ594 million.
Foreign exchange impactSterling strengthened against other currencies, creating an exchange rate headwind for the company.
Conference call and webcastJonathan Howell, Chief Financial Officer, will host a conference call and webcast to discuss the results.
About SageSage is a leader in accounting, financial, HR, and payroll technology for small and mid-sized businesses, aiming to knock down barriers and digitize business processes.
Overall, Sage Group plc had a strong start to the year, with broad-based revenue growth and continued momentum in Annualized Recurring Revenue (ARR). The company reiterates its guidance for the full year.
The table provides a comparison of key financial metrics for The Sage Group plc for the first quarter of 2025 (Q1 25) and the first quarter of 2024 (Q1 24). The table includes figures for total revenue, Sage Business Cloud revenue, recurring revenue, and software subscription revenue, along with the percentage growth from 2024 to 2025.