Sage Group PLC on Thursday said revenue grew nearly 10% during the first quarter of its current financial year, and reiterates its growth forecast.
The Newcastle-upon-Tyne, England-based accounting software maker said total revenue in the three months that ended December 31 grew 9.2% to £612 million from £558 million the year before.
North American revenue rose 11% to £279 million from £250 million, European revenue increased 8.3% to £176 million from £162 million, while revenue in the UKIA region improved 7.3% to £157 million from £146 million.
Revenue for Sage Business Cloud was up 12% on-year to £502 million from £443 million, and cloud native revenue edged up 20% to £208 million from £170 million.
Chief Financial Officer Jonathan Howell said: ‘Sage has made a strong start to the year, achieving broad-based revenue growth in line with expectations, despite the ongoing macroeconomic uncertainty. We’re innovating across our platform to deliver productivity and insights to small and mid-sized businesses, transforming their workflows through our products and AI-powered solutions.
‘We reiterate our guidance for the full year, as set out in our financial 2024 results announcement, as we continue to focus on efficiently scaling the group.’
Sage Group said in its 2024 results release that it expects organic total revenue growth to be 9% or above during financial 2025. The group also anticipates an upward trend in operating margins for 2025 and beyond.
Shares in Sage Group were down 1.3% at 1,319.50 pence each in London on Thursday morning.
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