Sage has recently delivered strong results in the first half of 2022 and maintains full year guidance. The group has experienced organic growth of the 8% recurring revenue driven by Sage Business Cloud growth of 21%. The annual recurring revenue (ARR) have increased a 10%due to ARR growth of cloud-native solutions by 43%.
Furthermore, strategic investment continues to drive growth and attracting new customers. The organic operating margin stands at 19.9%, in line with forecasts. Meanwhile, the company has maintained a strong cash generation at 120% cash conversion.
Investment in sales, marketing and innovation
“We have achieved a strong first half result, in line with expectations, showing further momentum and sustainable growth. Our strategic investment in sales, marketing and innovation has continued to drive revenue growth in the Sage Business Cloud, supported by increased levels of new customer acquisition. Cloud-native solutions, which now account for around a quarter of the Group’s ARR, have shown particularly good performance.”says Steve Hare, CEO of the Sage Group.
“Although we are aware of the growing macroeconomic and geopolitical uncertainty, our clients continue to trust and resist. Our goal is to break down the barriers to success by offering solutions that make your life easier, and we continue to make good progress on our strategic goals. I am confident that our ambition to become the trusted network for small and medium-sized businesses will drive Sage’s success as we focus on absolute revenue and profit growth.” adds Steve Hare.
