30th Jul 2025 09:38
(Alliance News) - Sage Group PLC on Wednesday reiterated annual guidance with revenue growth aided by increased sales of its business cloud product.
The Newcastle upon Tyne-based accountancy software provider said total revenue increased by 9.4% to GBP1.86 billion in the first nine months of 2025 from GBP1.70 billion a year prior.
Of this, sales of Sage Business Cloud grew 13% to GBP1.54 billion from GBP1.36 billion a year ago, or by 12% on an organic basis. Here, sales were driven by balanced growth from both new and existing customers, Sage said, including cloud native revenue growth of 22% to GBP645 million from GBP528 million.
Chief Financial Officer Jonathan Howell commented: "Sage has performed well in the first nine months of the year, in line with our expectations, delivering good levels of growth despite ongoing macroeconomic uncertainty. Accordingly, we reiterate our guidance for the full year."
In response, shares in Sage were marginally lower at 1,257.00 pence in London on Wednesday morning.
In North America, revenue grew by 11% to GBP846 million, with a strong performance from Sage Intacct, together with continuing growth in Sage 200 and Sage 50.
In the UK, Ireland & Africa region, revenue rose by 9% to GBP539 million, as Sage Intacct continues to "scale rapidly", supported by ongoing growth in small business solutions, Sage 50 and Sage 200.
In Europe, revenue grew by 7% to GBP477 million, with good growth across accounting, HR and payroll solutions.
Recurring revenue grew by 10% to GBP1.81 billion from GBP1.65 billion. Software subscription revenue grew by 11% to GBP1.55 billion from GBP1.39 billion.
In the third quarter of 2025, Sage said total revenue increased by 9.3% to GBP620 million from GBP567 million, driven by continuing growth across the Sage Business Cloud portfolio.
By Jeremy Cutler, Alliance News reporter
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