22nd Jan 2020 07:58
(Alliance News) - Strong performance in North America and northern Europe helped drive Sage Group PLC to double-digit revenue growth in its first quarter, the company said Wednesday.
Newcastle-headquartered Sage achieved recurring revenue of GBP410 million in the three months to December, 11% higher than the year before. This, it said, was underpinned by software subscription growth of 25% to GBP286 million.
Recurring revenue growth was "principally" driven by the North America and Northern Europe segments, Sage continued, with strong momentum in its financial year ended September continuing. North America recurring revenue was up 12% to GBP154 million, and Northern Europe rose 15% to GBP93 million.
"Sage had a strong first quarter as expected. We have sustained last year's growth momentum into the first quarter of financial 2020, as we continue to focus on driving recurring revenue through the transition to cloud-based subscription services, in line with our vision to become a great software-as-a-service company," said Chief Financial Officer Jonathan Howell.
"Looking ahead, we reiterate our guidance for the full year, as outlined in the financial 2019 results announcement," he added.
Financial 2019 results were unveiled in November. At the time, Sage guided for financial 2020 recurring revenue growth of 8% to 9%, driven by "strong" trading in the Future Sage Business Cloud Opportunity business.
Sage also guided for an organic operating margin of around 23%.
In its year ended September, Sage delivered recurring revenue growth of 11% organically, with the organic operating profit margin at 23.7%.
By George Collard; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Sage Group