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SAGE FY23 PRICES UP 4.5 PERCENT Featured

Sage implemented prices increases for its software products by an average of 4.5 percent for the year ended September 30.

That was relatively similar to price increases in fiscal 2022 and for those coming in fiscal 2024. The company does not discuss price increase for individual products.  In the company’s recent earnings webcast, CFO Jonathan Howell described the FY 2023 raises as consistent with the prior year and will likely stay in the same range.“ The outlook as we move into FY 2024 is pretty consistent,” Howell said. The annual recurring revenue increase for last year was 11 percent so the price increases should have contributed a significant chunk of software revenue. Early in FY23, Sage executives had discussed the need to cover its increased costs in an inflationary period. In answer to an analyst question about pricing for AI products, CEO Steve Hare differentiated between embedded AI that is largely invisible to the user and generative AI, which is more visible. The latter, he said, is “creating the ability to deliver this more active assistant like functionally” Sage is testing a Sage copilot—a digital assistant and Hare made it clear that will be priced separating. “It is our intention that is a premium service,” he said.

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