By Sabela Ojea
Sage Group PLC said Wednesday that trading in the first quarter of fiscal 2020 was strong as it benefited from revenue growth and backed its guidance for the full financial year.
The software company /zigman2/quotes/204528931/delayed UK:SGE -1.60% said organic total revenue grew 6.9% to 465 million pounds ($606.0 million) for the three months ended Dec. 31 mainly due to a strong performance in North American and north European markets, it said.
The FTSE 100-listed company said recurring revenue rose to GBP410 million compared with GBP370 million in the same period a year earlier.
In North America, recurring revenue grew to GBP154 million from GBP137 million, driven by cloud connected solutions and a good performance from Sage Intacct.
Northern Europe continued to grow strongly with recurring revenue growth of GBP93 million from GBP80 million, Sage said.
“Sage had a strong first quarter as expected...Looking ahead, we reiterate our guidance for the full year,” Chief Financial Officer Jonathan Howell said.