Q1 2025 Performance Overview
The Sage Group plc (LON:SGE), a leader in accounting, financial, HR, and payroll technology for small and mid-sized businesses, has announced its trading update for the three months ended 31 December 2024. The company delivered strong revenue growth across all regions, in line with expectations.
Key Financial Highlights
- Total Revenue: £612m, up 10% (Q1 2024: £558m)
- Sage Business Cloud Revenue: £502m, up 13%
- Cloud-native revenue grew 22% to £208m
- Recurring Revenue: £595m, up 10%
- Software Subscription Revenue: £509m, up 12%
- Subscription Penetration: 83% (Q1 2024: 82%)
Regional Performance
- North America: Revenue increased 11% to £279m
- Strong performance from Sage Intacct, Sage 50, and Sage 200
- UKIA (UK, Ireland, Africa): Revenue grew 9% to £176m
- Growth driven by Sage Intacct and cloud solutions such as Sage Accounting and Sage Payroll
- Europe: Revenue rose 8% to £157m
- Continued strong demand for accounting, HR, and payroll solutions
Management Commentary
Jonathan Howell, Chief Financial Officer, stated:
“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 FY24 results announcement, as we continue to focus on efficiently scaling the Group.”
Foreign Exchange Impact
The company noted that the strengthening of the British pound against the US dollar and other currencies created a headwind in Q1 2025.
Conclusion
Sage Group plc (LON:SGE) delivered solid revenue growth across all segments, underpinned by continued adoption of Sage Business Cloud and recurring revenue expansion. The company remains confident in its full-year outlook despite macroeconomic challenges.
