The Sage Group plc (SGE) Q2 2025 Earnings Call

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Replay transcript excerpt

WEBVTT 00:00:01.178 -- 00:00:05.504 Good morning and welcome to Sage's results for the first half of the year. 00:00:05.504 -- 00:00:09.868 I'm pleased to be joined by Jonathan Howell, our CFO. 00:00:09.891 -- 00:00:15.198 I'm going to start with an overview of our key messages for today. 00:00:15.198 -- 00:00:20.967 Sage delivered strong results in the first half as we continue to pursue our ambition 00:00:20.967 -- 00:00:26.134 to create the world's most trusted, thriving network for small 00:00:26.134 -- 00:00:30.625 and mid-sized businesses powered by Sage Copilot. 00:00:30.625 -- 00:00:36.013 We achieved stable, broad-based revenue growth across all regions, 00:00:36.013 -- 00:00:41.702 driven by a sustained double-digit increase in ARR. 00:00:41.702 -- 00:00:46.890 Discipline cost control, together with operating leverage, supported strong 00:00:46.890 -- 00:00:51.997 operating profit, margin and EPS expansion. 00:00:51.997 -- 00:00:58.404 An ongoing strength in cash conversion led to robust cash flow generation. 00:00:58.621 -- 00:01:03.848 Now this performance is underpinned by our constant focus on driving 00:01:03.848 -- 00:01:09.757 value for customers. We continue to innovate, enhancing our core products 00:01:09.757 -- 00:01:12.581 and growing our network platform. 00:01:12.581 -- 00:01:17.848 Sage Copilot, launched just over a year ago, is delivering productivity 00:01:17.848 -- 00:01:23.436 and insights to thousands of customers and we're just getting started. 00:01:23.436 -- 00:01:28.709 Sage is at the forefront of AI innovation in accountancy, 00:01:28.709 -- 00:01:33.940 HR and payroll. And our aim is to leverage this position to 00:01:33.940 -- 00:01:40.570 revolutionise productivity and decision-making for SMBs and accountants. 00:01:41.075 -- 00:...