Software giant Sage Plc sees revenues climb despite economic uncertainty

North East listed tech group Sage plc saw revenues rise 9% in the first nine months of its financial year, driven by growth in its Sage Business Cloud software.

The Cobalt Business Park based business, which is listed on the FTSE 100, issued a bullish trading update for the nine months ended June 30 2024, highlighting increasing revenues to £1.737bn, up 9% on the comparable period’s £1.589bn. Sage Business Cloud sales grew by 16% in the same period and accounted for £1.387bn of that figure, driven by growth in cloud native revenue of 23% to £539m, primarily through the addition of new customers and by growth in cloud connected revenue from both existing and new customers.

A breakdown of the turnover shows revenue in North America increased by 12% to £786m, with a good performance from Sage Intacct together with continuing growth in Sage 50 cloud and Sage 200 cloud. In the UKIA region, revenue grew by 8% to £497m, also driven by Sage Intacct together with cloud solutions for small businesses, including Sage Accounting and Sage Payroll.

The UK region also saw further growth in Sage 50 cloud and Sage 200 cloud. In Europe, meanwhile, revenue increased by 6% to £454m, with a strong performance across its accounting, HR and payroll solutions.

Recurring revenue increased by 10% to £1.68bn, with software subscription revenue growing by 13% to £1.419bn. The update tells shareholders how the pound sterling has strengthened against the US dollar and other international currencies compared with the prior period, leading to an exchange rate headwind in the first nine months of the year.