(Alliance News) - Sage Group PLC on Thursday said it had delivered a strong first quarter amid a boost in sales in the three months to December 31.
The Newcastle upon Tyne, England-based enterprise software company said in the first three months of the financial year ending September 30, total revenue rose 10% to GBP573 million from GBP522 million the year before.
Regionally, revenue in North America increased by 13% to GBP259 million year-on-year, and by 8% in the United Kingdom, Ireland and Africa regions to GBP162 million. In Europe, revenue increased by 7% to GBP152 million from the corresponding quarter a year ago. This was driven by a strong performance in cloud connected solutions, the firm said.
Sage added that its Business Cloud division revenue jumped 18% to GBP454 million.
Recurring revenue increased surged 11% to GBP554 million, from GBP500 million in the first quarter of financial 2023.
Sage Chief Financial Officer Jonathan Howell commented: "Sage has delivered a strong first quarter, sustaining good momentum and growing in line with our plan for the year. Small and mid-sized businesses are continuing to digitalise despite the ongoing macroeconomic uncertainty, and through our trusted cloud solutions and innovative, AI-powered services we are well positioned to support them. We reiterate our guidance for the full year, as set out in our [financial 2023] results announcement, as we continue to focus on delivering efficient growth."
Shares in Sage fell 2.5% to 1,126.50 pence each in London on Thursday morning.
By Sabrina Penty, Alliance News reporter
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Sage Group (SGE)