Information  X 
Enter a valid email address

Sage Group PLC (SGE)

  Print          Annual reports

Wednesday 26 January, 2022

Sage Group PLC

Trading update for the 3 months ended 31 Dec 2021

RNS Number : 6266Z
Sage Group PLC
26 January 2022

 Trading update for the three months ended 31 December 2021

The Sage Group plc (FTSE: SGE), the leader in accounting, financial, HR and payroll technology for small and mid-sized businesses, today issues a trading update for the three months ended 31 December 2021.

Jonathan Howell, Chief Financial Officer, commented:

"Sage has made a strong start to the year, accelerating growth in line with expectations. Sage Business Cloud has performed particularly well, driven by continued growth in both cloud native and cloud connected solutions, as we execute on our strategy to be the trusted network for small and mid-sized businesses. Accordingly, we reiterate our guidance for the full year, as set out in our FY21 results announcement."

Financial performance

Organic Revenue Mix[1]

Q1 22

Q1 21







Revenue by Category





Recurring Revenue





Other Revenue (SSRS[2] & Processing)





Organic Total Revenue










Portfolio View of Recurring Revenue





Future Sage Business Cloud opportunity





  of which Sage Business Cloud





Non-Sage Business Cloud





Recurring Revenue





Recurring revenue grew by 8% to £429m, underpinned by a 21% rise in Sage Business Cloud revenue to £280m, with continued strength in new customer acquisition. Software subscription revenue grew by 13% to £336m (Q1 21: £296m), increasing subscription penetration to 73% (Q1 21: 68%).

Regionally, North America achieved growth in recurring revenue of 11% to £174m (Q1 21: £157m) reflecting further strength in Sage Intacct, together with growth in cloud connected products. In Northern Europe, recurring revenue increased by 7% to £102m (Q1 21: £96m), driven by accelerating growth in cloud native solutions including Sage Accounting and Sage Intacct. In International, recurring revenue increased by 5% to £152m (Q1 21: £145m), with growth across Sage Business Cloud supported by further progress in migrations.

In terms of the portfolio view of recurring revenue, the Future Sage Business Cloud opportunity (products within, or to be migrated to, Sage Business Cloud) grew 10% to £394m. This was driven by strong growth in cloud native revenue of 44% to £90m (Q1 21: £62m) primarily through new customer acquisition, as well as further growth in the cloud connected portfolio. Sage Business Cloud penetration increased to 71% (Q1 21: 65%). 

Other revenue (SSRS and processing) decreased by 22% to £29m, in line with our strategy to transition away from licence sales and professional services implementations.

Total Group revenue increased by 5% to £458m.

On 17 January 2021, Sage completed the previously announced acquisition of Brightpearl, a cloud native multichannel retail management system for the retail and ecommerce vertical. The acquisition accelerates our strategy for growth, including scaling Sage Intacct, broadening the value proposition for mid-sized businesses and expanding Sage's digital network.

Foreign exchange

Sterling strengthened in the quarter against the US dollar and Euro, leading to an exchange rate headwind.

Analyst and investor conference call

Jonathan Howell will host a conference call at 8.30am UK time, which can be accessed via the following link The call may also be accessed using the dial-in number 0800 279 6619 (United Kingdom) or +44 (0) 20 7192 8338 (International) and pin code 4589027.


Sage +44 (0) 7900 046714

Jonathan Howell, Chief Financial Officer

James Sandford, Investor Relations

Amy Lawson, Corporate PR

Finsbury Glover Hering +44 (0) 20 7251 3801

Conor McClafferty

Amanda Healy

About Sage

Sage exists to knock down barriers so everyone can thrive, starting with the millions of small and mid-sized businesses 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.



[1]All numbers in this document are organic. Organic results exclude contributions from assets held for sale and in-year acquisitions.

[2]Software and software-related services.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected]m or visit

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

a d v e r t i s e m e n t