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SAGE: U.S. NEEDS NEW CUSTOMER FOCUS Featured

Stephen Hare, SageSage was very happy with the results for its fiscal year ended September 30. However, the message for the future is that the United States needs a greater focus on selling to new customers. No specific plans were disclosed. But CFO Stephen Hare, in discussing the high level of support contracts in this country, noted, "This reflects the historical focus on the installed base.

That was followed by Hare's comment "The U.S. team needs to drive harder on subscription including with the partner channel. They need a real focus on supporting the startup segment and this means acquiring meaningful numbers of Sage One customers." Hare described North American performance as mixed, noting that revenue was up 4 percent over 2015, 6 percent excluding payments. Revenue for North America was about $676 million, while recurring revenue rose 9 percent to about $388 million. Sage singled out the Construction and Real Estate business on this continent, which added 1,000 customers in 2016, a record, and representing 7 percent growth. Recurring revenue growth here was up 9 percent with an 84-percent increase in subscription sales with triple-digit subscription growth for Sage 50 in the U.S. and Canada. Worldwide revenue reached almost $2 billion, an increase of 6.1 percent from the prior year. Earnings were about $260 million,  6.7 percent higher than in the prior year.

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