REG - Sage Group PLC (The) - Trading update for nine months ended 30 June 2025

SageAnnouncement

Wed 07:02

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RNS Number : 0766T  Sage Group PLC (The)  30 July 2025

 

The Sage Group plc

Trading update for the nine months ended 30 June 2025

The Sage Group plc (FTSE: SGE), a leader in accounting, financial, HR and
payroll technology for small and mid-sized businesses, today issues a trading
update for the nine months ended 30 June 2025 i  (#_edn1) .

Jonathan Howell, Chief Financial Officer, commented:

"Sage has performed well in the first nine months of the year, in line with
our expectations, delivering good levels of growth despite ongoing
macroeconomic uncertainty. Accordingly, we reiterate our guidance for the full
year, as set out in our half year results announcement. Our cloud and
AI-powered solutions are driving success for our customers and confidence in
our strategy, as we focus on the continued delivery of sustained, efficient
growth."

 Underlying Revenue Performance ii  (#_edn2)  Q3 25 YTD  Q3 24 YTD  % Growth  Organic

% Growth

 Total Revenue                                £1,862m    £1,701m    +9%       +9%
      of which Sage Business Cloud            £1,538m    £1,359m    +13%      +12%

 Total Revenue by Region
 North America                                £846m      £761m      +11%      +11%
 UKIA                                         £539m      £495m      +9%       +9%
 Europe                                       £477m      £444m      +7%       +6%

Total revenue increased by 9% to £1,862m in the first nine months of the
year, as Sage continues to drive growth in all regions.

In North America, revenue grew by 11% to £846m, with a strong performance
from Sage Intacct together with continuing growth in Sage 200 and Sage 50. In
the UKIA region, revenue increased by 9% to £539m, as Sage Intacct continues
to scale rapidly, supported by ongoing growth in small business solutions
(including Sage Accounting), Sage 50 and Sage 200. In Europe, revenue grew by
7% to £477m, with good growth across our accounting, HR and payroll
solutions.

Sage Business Cloud revenue increased by 13% to £1,538m, driven by balanced
growth from both new and existing customers, including cloud native revenue
growth of 22% to £645m (Q3 24 YTD: £528m).

Recurring revenue grew by 10% to £1,805m (Q3 24 YTD: £1,645m), reflecting
continued momentum in Annualised Recurring Revenue (ARR) during the period.
Software subscription revenue grew by 11% to £1,549m (Q3 24 YTD: £1,390m)
resulting in subscription penetration of 83% (Q3 24 YTD: 82%).

In the third quarter, total revenue increased by 9% to £620m (Q3 24: £567m),
driven by continuing growth across the Sage Business Cloud portfolio.

On an organic basis (excluding the impact of M&A), total revenue increased
by 9% in the first nine months of the year to £1,858m (Q3 24 YTD: £1,705m),
while recurring revenue increased by 9% to £1,802m (Q3 24 YTD: £1,649m).

Foreign exchange

Sterling strengthened against the US dollar and other international currencies
compared with the prior period, leading to an exchange rate headwind.

Analyst and investor conference call

Jonathan Howell will host a webcast and conference call today at 8.30am UK
time. The webcast can be accessed via
https://edge.media-server.com/mmc/p/24mjrmpf
(https://edge.media-server.com/mmc/p/24mjrmpf) . To join the conference call,
please register via
https://register-conf.media-server.com/register/BI020d52621d70415f8ec7572165e377dd
(https://register-conf.media-server.com/register/BI020d52621d70415f8ec7572165e377dd)
.

Enquiries

Sage +44 (0) 7341 479956

Jonathan Howell, Chief Financial Officer

James Sandford, Investor Relations

David Ginivan, Corporate PR

FGS Global +44 (0) 20 7251 3801

Conor McClafferty

Sophia Johnston

About Sage

Sage exists to knock down barriers so everyone can thrive, starting with the
millions of small and mid-sized businesses (SMBs) served by us, our partners
and accountants. Customers trust our finance, HR and payroll software to make
work and money flow. By digitising business processes and relationships with
customers, suppliers, employees, banks and governments, our digital network
connects SMBs, removing friction and delivering insights. Knocking down
barriers also means we use our time, technology and experience to tackle
digital inequality, economic inequality and the climate crisis.

 i  (#_ednref1) All figures are on an underlying basis unless otherwise
stated.

 ii  (#_ednref2) Underlying and organic results are presented on a constant
currency basis, while organic growth also excludes the impact of M&A.
Underlying and organic measures are defined on page 261 of Sage's FY24 Annual
Report.

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