Sage soars as full year numbers reveal firm is now a 97% recurring revenue company

A stellar set of full year numbers for Sage Group sent the firm’s share price soaring nearly 20% to its highest level ever as underlying operating profits grew 21% to £529 million.

Total underlying revenue was up by nearly £200 million to £2.3 billion with Sage Business Cloud powering growth with a 16% increase in revenue to £1.9 billion.

Annualised Recurring Revenue (ARR) rose 11% to £2.34 billion, while subscription penetration rose to 82%. The firm also reported a renewal rate by value of 101%. Sage is now a 97% recurring revenue company.

CEO Steve Hare told analysts on the post-earnings conference call that the firm continues to focus on its three priorities to connect, grow and deliver:

Our purpose is unchanged, to knock down barriers so that everyone can thrive, and we do this for all of our stakeholders, starting with millions of SMB customers ...