Sage reiterates full-year outlook as revenue grows

(Sharecast News) - Sage reported total revenue of £2.06bn for the first nine months of its financial year on Wednesday, up 11% year-on-year, as growth accelerated in the third quarter and demand remained strong from both new and existing customers. It said Sage Business Cloud revenue rose 15% to £1.76bn, including a 25% increase in cloud native revenue to £794m, while recurring revenue grew 11% to £2.0bn and software subscription revenue increased 13% to £1.74bn.

North American revenue increased 14% to £932m, UKIA revenue rose 10% to £602m and Europe grew 7% to £528m.

Third-quarter revenue was up 12% at £699m.

Sage reiterated its full-year outlook for organic total revenue growth of more than 9%, with operating margins expected to trend higher.

"Sage has delivered nine months of accelerating revenue growth, with momentum strengthening further in the third quarter," said chief financial officer Jacqui Cartin.

At 0917 BST, shares in the Sage Group were up 3.43% at 972p.

Reporting by Josh White for Sharecast.com.

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