The Sage Group plc has increased quarterly revenues 7.6% as it continues to focus on a subscription-based business model.
The Newcastle-headquartered software giant recorded a group organic revenue of £465m for the three months to December 31 2018.
Sage’s Q1 recurring revenue came in at £387m, a year-on-year increase of 10.5%.
The uptick, reported this morning (January 17), was underpinned by software subscription growth of 27.7% to £237m.
Sales from software and software-related services fell 5.8% to £65m, but the dip reflects a managed decline in licences as Sage Group transitions to subscription.
Revenues from products in, or due to be migrated to, Sage Business Cloud grew 9.3% to £380m. Products with no current path to Sage Business Cloud generated a slight increase of 0.6%, at £85m.
The North American market delivered revenue growth of 10.4% to £154m, while the UK and Ireland showed signs of recovery with 5.9% revenue growth generating £96m.
Earlier this week, Sage announced an agreement to sell Sage Payroll Solutions, its US-based payroll outsourcing business, for £78m.
Steve Hare, the firm’s new chief executive officer, said of the quarterly results: “We have been encouraged by the strong start to FY19, reflecting the renewed focus on high-quality subscription and recurring revenue as we continue the journey to becoming a great SaaS business.
“Looking ahead we reiterate our full year guidance for FY19 as outlined at the FY18 results announcement.”
Read more posts
Bosses from the biggest food producers in China recently invited a Sunderland academic to showcase his innovative food safety business model. Dr Derek Watson, from the University of Sunderland, has…Read more
The North East Local Enterprise Partnership (LEP) has published its updated Strategic Economic Plan, outlining how it will have helped create 100,000 jobs for the region by 2024. The organisation…Read more
Newcastle University has revealed a vision to redevelop the former General Hospital site in the city’s West End. The project will look to address the challenges of an ageing society…Read more