Business
Trading update for nine months ended 30 June 2023
Trading update for nine months ended 30 June 2023.
About this update from Sage Group Plc
[{"type":"text","content":"\n\nThe Sage Group plc\nTrading update for the nine months ended 30 June 2023\nThe Sage Group plc (FTSE: SGE), the leader in accounting, financial, HR and payroll technology for small and mid-sized businesses, today issues a trading update for the nine months ended 30 June 2023[1].\nJonathan Howell, Chief Financial Officer, commented:\n\"Sage has performed strongly throughout the first nine months, in line with our expectations, as we help small and mid-sized businesses become more productive and resilient. Sage continues to build strong momentum, driving the delivery of sustainable, efficient growth. Accordingly, we reiterate our guidance for the full year, as set out in our half year results announcement.\"\n\n\n\n\nUnderlying Revenue Performance[2]\n\n\nQ3 23 YTD\n\n\nQ3 22 YTD\n\n\nGrowth\n\n\nOrganic\nGrowth\n\n\n\n\n\n\n\n \n\n\n \n\n\n \n\n\n \n\n\n\n\nRevenue by Category\n\n\n \n\n\n \n\n\n \n\n\n \n\n\n\n\nRecurring Revenue\n\n\n£1,562m\n\n\n£1,394m\n\n\n+12%\n\n\n+12%\n\n\n\n\nOther Revenue (SSRS[3])\n\n\n£68m\n\n\n£87m\n\n\n-22%\n\n\n-21%\n\n\n\n\nTotal Revenue\n\n\n£1,630m\n\n\n£1,481m\n\n\n+10%\n\n\n+10%\n\n\n\n\n \n\n\n\n\n\n \n\n\n \n\n\n \n\n\n\n\nRecurring Revenue by Region\n\n\n \n\n\n \n\n\n \n\n\n \n\n\n\n\nNorth America\n\n\n£702m\n\n\n£603m\n\n\n+16%\n\n\n+15%\n\n\n\n\nUKIA\n\n\n£456m\n\n\n£412m\n\n\n+11%\n\n\n+9%\n\n\n\n\nEurope\n\n\n£404m\n\n\n£379m\n\n\n+7%\n\n\n+8%\n\n\n\n\n \n\n\n \n\n\n \n\n\n \n\n\n \n\n\n\n\nRecurring Revenue by Portfolio\n\n\n \n\n\n \n\n\n \n\n\n \n\n\n\n\nFuture Sage Business Cloud Opportunity\n\n\n£1,449m\n\n\n£1,283m\n\n\n+13%\n\n\n+12%\n\n\n\n\n of which Sage Business Cloud\n\n\n£1,201m\n\n\n£930m\n\n\n+29%\n\n\n+28%\n\n\n\n\nNon-Sage Business Cloud\n\n\n£113m\n\n\n£110m\n\n\n+3%\n\n\n+3%\n\n\n\n\n Recurring revenue for the first nine months of the year increased by 12% to £1,562m, underpinned by a 29% rise in Sage Business Cloud revenue to £1,201m. Software subscription revenue grew by 17% to £1,286m (Q3 22 YTD: £1,098m), resulting in subscription penetration of 79% (Q3 22: 74%).\nRegionally, recurring revenue in North America grew by 16% to £702m, with a strong performance from Sage Intacct together with growth in cl...