Revenues have grown further at business software giant Sage, despite bosses pointing to global economic uncertainty.
The North Tyneside-based accounting and payroll specialist saw total revenue grow 9% to £1.86bn in the first nine months of the year, up from £1.7bn in the same period. The FTSE100 firm's cloud products brought £1.53bn of revenue thanks to a mix of new and existing customers - a 13% rise compared with the previous year when Sage Business Cloud saw £1.35bn revenue.
Cloud native - which includes software products designed to operate directly from the cloud - saw revenue growth of 22% to £645m. Meanwhile recurring revenue grew by 10% to £1.8bn, compared with £1.64bn the year before, which bosses said reflected momentum in annualised recurring revenue during the period.
Sage said it had continued to grow in all its territories. In a trading update to investors on the London Stock Exchange, it said North American revenues grew by 11% to £846m thanks to a strong performance from its Sage Intacct financial management software and further growth in its management solution Sage 200 and Sage 50. In its Ƶ, Ireland and Africa region, revenue increased by 9% to £539m, thanks to Sage Intacct's rapid scaling and supported by ongoing growth in small business solutions Sage 50 and Sage 200.
In Europe, revenue was up 7% to £477m, with growth said to be good across the firm's accounting, HR and payroll solutions.
Jonathan Howell, chief financial officer, said the business was heading into the final quarter of the year with good momentum. He said: “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.”
The update from Sage came shortly after it announced a sponsorship deal with the English Football League (EFL) - becoming its Official Accounting Software Partner. It is already working with nearly half of the EFL's 72 clubs and says the new deal will expand its presence by offering support to "the small businesses behind the badge".
In a Ƶ-wide fan campaign fronted by former player and now pundit Gary Neville, Sage is searching for supporters of EFL clubs to nominate the local businesses at the heart of their football community, "who elevate the matchday experience".
Three winning businesses will have the chance to win a bespoke club sponsorship, funded by Sage, with the chance to gain exposure and drive growth. Additional finalists will receive business grants and promotional opportunities at EFL matches.
Mr Neville said: "Football is more than what happens on the pitch, it's a tradition rooted in local communities. The small businesses around every ground make matchdays what they are, from the cafés to the corner shops and coach companies. I've seen it from my time as a player and now as an owner, just how vital these businesses are. I'm proud to join Sage in celebrating their contribution and helping them thrive."
