Sage’s first half results encouraging

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Steve Hare / Sage CEO

Key Takeaways

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Sage's organic total revenue increased by 5.7% to £935 million, driven by a 10.3% rise in recurring revenue, which reached £826 million.

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The significant growth in software subscription revenue, up 25.6% to £582 million, highlights Sage's strategy to attract new customers and migrate existing ones to subscription services.

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Despite a 19.6% decline in other revenue due to a managed decrease in license sales and professional services, CEO Steve Hare emphasizes a strong foundation for future performance through investment in Sage Business Cloud and a focus on customer and innovation.

First half results reveal Sage’s organic total revenue has increased by 5.7 percent to £935m, reflecting growth in recurring revenue of 10.3 percent to £826m underpinned by software subscription revenue growth of 25.6 percent to £582m.

This increase in recurring revenue evidences Sage’s continued focus on attracting new customers and migrating existing customers to subscription services.

The growth in recurring revenue was offset by a 19.6 percent decrease in other revenue (SSRS and processing) to £109m, reflecting the managed decline in licence sales and de-prioritisation of professional services revenue.

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Steve Hare, CEO, said: “Despite the near-term uncertainties, I believe our continuing investment into Sage Business Cloud, together with our focus on customers, colleagues and innovation, form a strong base for the future performance of Sage.”

Key Takeaways

⇨ Sage's organic total revenue increased by 5.7% to £935 million, driven by a 10.3% rise in recurring revenue, which reached £826 million.

⇨ The significant growth in software subscription revenue, up 25.6% to £582 million, highlights Sage's strategy to attract new customers and migrate existing ones to subscription services.

⇨ Despite a 19.6% decline in other revenue due to a managed decrease in license sales and professional services, CEO Steve Hare emphasizes a strong foundation for future performance through investment in Sage Business Cloud and a focus on customer and innovation.

Explore related questions

⇨

Sage's organic total revenue increased by 5.7% to £935 million, driven by a 10.3% rise in recurring revenue, which reached £826 million.

⇨

The significant growth in software subscription revenue, up 25.6% to £582 million, highlights Sage's strategy to attract new customers and migrate existing ones to subscription services.

⇨

Despite a 19.6% decline in other revenue due to a managed decrease in license sales and professional services, CEO Steve Hare emphasizes a strong foundation for future performance through investment in Sage Business Cloud and a focus on customer and innovation.