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Sage says software subscription growth behind increase in recurring revenue

By BFN News | 07:41 AM | Thursday 23 July, 2020


Software company Sage has reported recurring revenue for the first nine months of the year increased by 9%, driven by growth in software subscription of 22.6%, boosting total group revenue during the period by 4.1% to £1,395m. In a trading update for the nine months to 30 June 2020, the group announced that recurring revenue grew to £1,247m, driven principally by North America and Northern Europe. In North America, recurring revenue grew by 11.3% to £474m, which Sage attributed to cloud connected solutions and continued growth in Sage Intacct. Sage announced that in Northern Europe, recurring revenue grew by 10.6% to £281m, reflecting new cloud connected contracts, together with good momentum carried into the period. Software subscription growth reached £885m, up from £722m in the prior year, as Sage said it had continued to focus on migrating existing customers and attracting new customers to Sage Business Cloud. Total group revenue increased by 1.1% to £460m in the third quarter, which saw 'challenging trading conditions' due to COVID-19, leading to a reduction in new customer acquisition and a slight increase in customer churn. The group said its trading performance gradually improved as the quarter progressed. Chief financial officer Jonathan Howell said: 'We are confident that our sustained investment in Sage Business Cloud throughout the economic cycle will form a strong base for the long-term success of Sage.' Story provided by StockMarketWire.com

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