Sage reports strong growth after AI Assistant launch

Sage, a Newcastle-based accounting software firm, has announced a significant increase in revenue and profits, driven by the growing popularity of its cloud-based products.

For the year ending September, the company reported a 7% rise in statutory revenue to £2.332bn and a 43% surge in statutory operating profits to £452m. Annualised recurring revenue climbed 11% to £2.339bn, while underlying operating profit increased by 21% to £529m.

Reflecting its strong financial performance, Sage has unveiled a £400m share buyback programme, set to commence immediately and conclude by June 2025.

The company has highlighted robust growth in its Cloud Business products, with a 16% increase to £1.87bn. Cloud native revenue surged by 23% to £732m. Sage’s strong customer retention rate of 101% demonstrates the popularity of its products and services among existing customers.

Sage has extended its generative AI-powered desktop assistant, Sage Copilot, to a wider customer base. This intelligent tool is designed to automate tasks, provide operational advice, and ultimately boost productivity for businesses. The company plans to monetise the service through a premium offering and gradually introduce it to more customers.

Steve Hare, CEO, commented: “Sage has delivered another successful year, achieving strong, broad-based revenue growth together with significantly higher profits and cash flows. We also invested further in our products and continued to execute well against our strategic priorities. Our high pace of innovation continues, as we enhance existing products and expand key cloud solutions throughout our markets.”

Image: Sage offices at Cobalt Business Park in North Tyneside (source: Newcastle Chronicle)