Sage Group PLC on Thursday reiterated its full-year guidance, as it saw revenue rise in the year to date thanks to strong momentum.

For the nine months ended June 30, the Newcastle-upon-Tyne, England-based software business reported total revenue of £1.63 billion, up 10% from £1.48 billion for the same period a year prior.

Recurring revenue increased 12% to £1.56 billion from £1.39 billion, underpinned by a 29% rise in Sage Business Cloud revenue to £1.20 billion.

Software subscription revenue grew 17% to £1.29 billion from £1.10 billion the previous year, resulting in subscription penetration of 79%, compared to 74%.

‘Sage has performed strongly throughout the first nine months, in line with our expectations, as we help small and mid-sized businesses become more productive and resilient,’ said Chief Financial Officer Jonathan Howell.

‘Sage continues to build strong momentum, driving the delivery of sustainable, efficient growth. Accordingly, we reiterate our guidance for the full year, as set out in our half year results announcement.’

In May, Sage told investors that it expected organic recurring revenue growth for financial 2023 in the region of 11%, driven by continued strength in Sage Business Cloud.

Conversely, the firm said it expected other revenue to decline, in line with its strategy. Operating margins are expected to trend upwards, as the board focuses on ‘efficiently scaling the group’.

Sage shares were trading 1.0% higher at 937.20 pence each in London on Thursday morning.

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