29th Jul 2021 11:28
(Alliance News) - Accounting software firm Sage Group PLC on Thursday lifted its annual guidance after a solid third quarter that saw steady growth in recurring revenue.
Recurring revenue for the third quarter ended June 30 was GBP1.22 billion, representing 5% growth. Total revenue increased 2.6% to GBP1.33 billion in the first nine months of the year while organic revenue for the quarter rose 3% from a year prior to GBP1.33 billion.
Sage reported that it now expects full year recurring revenue growth to be slightly above its previous guidance range of 3% to 5%. The group's guidance across other metrics remains unchanged, it confirmed.
Growth was particularly strong in North America, with revenue growth of 7% year-on-year to GBP475 million.
"The performance of the group in the first nine months of the year demonstrates continued delivery against our strategy," said Chief Financial Officer Jonathan Howell.
"Through our additional strategic investment, we are building strong foundations to drive further sustainable growth and support the long-term success of the group."
Shares in Sage were 0.8% lower in London on Thursday at 692.00 pence each.
By Will Paige; [email protected]
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