Sage’s revenue for the third quarter slumped to about $574.1 million for the third quarter ended June 30, an increase of 1.1 percent from last year’s corresponding period. That stemmed from a slowdown in new customer acquisition, the company said in this week’s trading update.

Revenue for the nine months was approximately $1.75 billion, up 4.1 percent from a year earlier. This was organic revenue  (There was no significant acquisition activity in the nine months). Sage does not report earnings in its trading updates for the third quarter. During the webcast for the trading update, CFO Jonathan Howell noted the COVID-19 pandemic also produced greater customer churn.  However, he continued, "Our trading performance gradually improved as the quarter progressed. " North American recurring revenue for the year-to-date was roughly $591.5 million, a rise of 11.3 percent. Overall, the nine months reflected the continuing move from licenses sales to subscriptions, with software subscription revenue increasing 22.6 percent to around $1.11 billion. North American recurring revenue for the nine months rose 11.3 percent to approximately $591.6 million “driven by cloud connected solutions and continued growth in Sage Intacct,” the company said. Howell cited continuing migration of Sage 50 as an important factor, the only product singled out besides Intacct and noted that cloud product’s introductininto the markets in the United Kingdom and Australia and its pending introduction in South Africa. Third-quarter recurring revenue hit about $525..6 million, rising 6.5 percent from the prior year’s third quarter.

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