30th Jan 2025 09:19
(Alliance News) - Sage Group PLC on Thursday said revenue grew nearly 10% during the first quarter of its current financial year, and reiterates its growth forecast.
The Newcastle-upon-Tyne, England-based accounting software maker said total revenue in the three months that ended December 31 grew 9.2% to GBP612 million from GBP558 million the year before.
North American revenue rose 11% to GBP279 million from GBP250 million, European revenue increased 8.3% to GBP176 million from GBP162 million, while revenue in the UKIA region improved 7.3% to GBP157 million from GBP146 million.
Revenue for Sage Business Cloud was up 12% on-year to GBP502 million from GBP443 million, and cloud native revenue edged up 20% to GBP208 million from GBP170 million.
Chief Financial Officer Jonathan Howell said: "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 financial 2024 results announcement, as we continue to focus on efficiently scaling the group."
Sage Group said in its 2024 results release that it expects organic total revenue growth to be 9% or above during financial 2025. The group also anticipates an upward trend in operating margins for 2025 and beyond.
Shares in Sage Group were down 1.3% at 1,319.50 pence each in London on Thursday morning.
By Emily Parsons, Alliance News reporter
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