NEWCASTLE-based fintech group Sage has reported a strong set of results for the three months ended 31 December 2021, driven in part by growth in its cloud-based solutions.
Chief Financial Officer Jonathan Howell said: “Sage has made a strong start to the year, accelerating growth in line with expectations. Sage Business Cloud has performed particularly well, driven by continued growth in both cloud native and cloud connected solutions, as we execute on our strategy to be the trusted network for small and mid-sized businesses.”
Recurring revenue grew by 8% to £429m, underpinned by a 21% rise in Sage Business Cloud revenue to £280m. Software subscription revenue grew by 13% to £336m, compared to Q1 in 2021 which was £296m.
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Regionally, North America achieved revenue growth iof 11% to £174m, reflecting further strength in Sage Intacct, together with growth in cloud connected products.
In Northern Europe, recurring revenue increased by 7% to £102m (Q1 21: £96m), driven by accelerating growth in cloud native solutions including Sage Accounting and Sage Intacct. In International, recurring revenue increased by 5% to £152m (Q1 21: £145m), with growth across Sage Business Cloud supported by further progress in migrations.
The Future Sage Business Cloud opportunity, which covers products within, or to be migrated to, Sage Business Cloud, grew 10% to £394m. This was driven by strong growth in cloud native revenue of 44% to £90m (Q1 21: £62m) primarily through new customer acquisition, as well as further growth in the cloud connected portfolio.
Other revenue decreased by 22% to £29m, in line with the company’s strategy to transition away from licence sales and professional services implementations.
Total Group revenue increased by 5% to £458m.
On 17 January 2021, Sage completed the acquisition of Brightpearl, a cloud native multichannel retail management system for the retail and ecommerce vertical.
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