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Sage Group Q1 revenue grows amid strong accountancy product demand

Published 01/19/2023, 04:46 AM
Updated 01/19/2023, 04:51 AM
© Reuters.
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By Scott Kanowsky 

Investing.com -- Sage Group PLC (LON:SGE) reported a jump in top-line growth in its first quarter, as Britain's largest listed tech company was boosted by solid demand for its range of accountancy and payroll products.

Recurring revenue during the three months to December 31 came in at £517 million, a rise of 12% compared to the same period last year. This constituted the bulk of Newcastle-based Sage's total revenue of £540M over the period, itself an increase of 10% year-on-year.

Underpinning this uptick was Sage Business Cloud, the company's suite of cloud-based bookkeeping software designed for small- to medium-sized businesses, which saw revenue grow by nearly a third to £390M.

A recent weakening in sterling against the U.S. dollar and the euro provided a tailwind as well.

In a statement, chief financial officer Jonathan Howell said first quarter trading had met the firm's expectations. He also reiterated Sage's full-year guidance for organic recurring revenue growth above 2022 levels and a "trend upwards" in operating margins, but flagged that risks remain in the "current macroeconomic environment."

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