Subscription revenue continued to perform well helping produce a 7.2-percent increase in organic recurring revenue growth, apparently the same as in the first half. Subscription revenue was up by 24.5 percent in the third quarter. Officially, Sage said, “the growth in recurring revenue was achieved despite a weaker performance in payments, particularly in North America, where market-wide pricing pressure has contributed to revenue contraction during the quarter. We remain cautious on the outlook for payments growth in the fourth quarter.” Revenue for software and software related services was down by 3.4 percent in the third quarter. However, Sage pinned that problem on the mid-market in Europe. I am assuming by inference that North America was better. Sage does not report earnings or revenue figures for the interim reports for the first and third quarters.
SAGE THIRD QUARTER SOFTER Featured
No, the company didn’t phrase it this way. But Sage’s organic revenue growth for the nine months ended June 30 was 4.7 percent over the prior year and the rate was 4.3 percent for the most recently ended quarter, Sage said this week. The company expects business to pick up in the fourth quarter and to close fiscal 2014 with 6 percent-organic revenue growth. Lame duck CEO Guy Berruyer said in the company’s interim management statement that “We remain confident of achieving our target of 6-percent organic revenue growth in 2015.”
