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One accounting software provider has released its audited results for the year ended 30 September 2016, revealing strong growth and continued business transformation.
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Software provider records strong annual performance
02 December 2016
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Sage achieved organic revenue growth of 6.1 per cent, recurring revenue growth for a decade of 10.4 per cent, and an organic operating margin of 27.2 per cent for the year ended 30 September 2016.
Sage also recorded software subscription growth of 32.3 per cent, in line with the planned decline in SSRS revenue of 8.5 per cent for the same time period.
“FY16 saw Sage continue to deliver on the commitment made at our June 2015 Capital Markets Day to perform and transform,” Sage CEO Stephen Kelly said.
“The organic revenue growth of 6 per cent is driven by higher quality recurring revenue, which grew at the fastest rate in a decade.”
“The strategy is working, with customers embracing closer relationships with Sage, evidenced by a 46 per cent increase in the number of subscription contracts and a contract retention rate of 86 per cent.”
Sage is also undergoing a transformation, with phase one now complete and phase two beginning in 2017.
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“Phase one of the transformation program has been successfully delivered,” Mr Kelly said.
“Phase two of the transformation will continue to be non-linear and focus on driving more technology innovation, with increasing focus on new customer acquisition as well as continuing to improve execution against the strategy for business builders.”
Mr Kelly predicted similar numbers for the year finishing 30 September 2017.
“For FY17, the second full fiscal year of our transformation, our full-year guidance for FY17 is for at least 6 per cent organic revenue growth and at least 27 per cent organic operating margin,” he said.
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