Sage Reports Strong First Half with Accelerating Growth
Software company Sage Group plc announced its interim results for the six months ended March 31, 2022. The company reported organic recurring revenue growth of 8% and Sage Business Cloud growth of 21%.
Sage Group plc has reported a strong performance in its first half, concluding on March 31, 2022. The company's organic recurring revenue grew by 8% to £866 million, while its Sage Business Cloud segment accelerated with a 21% increase. Total organic revenue rose by 5% to £924 million.
Annualised Recurring Revenue (ARR) increased by 10% to £1.78 billion. Notably, cloud-native ARR saw substantial growth of 43%, supporting the company's strategic investments in cloud-based solutions. Sage has significantly expanded its customer base and reported a 100% renewal rate by value, an improvement from the previous year.
The organic operating profit increased by 4% to £184 million, achieving a margin of 19.9%. The company anticipates the organic operating margin will continue to trend upwards through 2022. Sage's full-year financial outlook remains unchanged, with expected organic recurring revenue growth projected between 8% and 9%.
Sage has also pursued strategic acquisitions, including Brightpearl, to bolster its position in retail operations management systems. The company has focused on its core operations by divesting businesses in Switzerland and South Africa. CEO Steve Hare expressed confidence in the company's strategy and its ability to achieve profitable growth.