Sage - Investor Centre

Sage is the global market leader for technology that helps businesses of all sizes manage everything from money to people - whether they're a start-up, scale-up or enterprise.

Sage - Investor Centre

Sage is the global market leader for technology that helps businesses of all sizes manage everything from money to people - whether they're a start-up, scale-up or enterprise.

Sage - Investor Centre

Sage is the global market leader for technology that helps businesses of all sizes manage everything from money to people - whether they're a start-up, scale-up or enterprise.

Sage at-a-glance

With Sage Business Cloud, we provide the one and only cloud business management solution that customers will ever need across Accounting, Financials, Enterprise, People & Payroll and Payments & Banking. The depth and breadth of the solution that we offer, across 23 countries, enables us to stand out from the competition.

Investment case

  • High quality recurring revenue growth:
    78% recurring revenue, 37% software subscription revenue
  • Significant cost savings:
    > £100m annualised cost savings identified in FY16 and FY17
  • Strong free cash flow:
    Free cash conversion 15-20% of revenue (FY17: 15%)
  • Sustainable and progressive dividend:
    Increase in ordinary dividend every year since 1999 (FY17: 9% increase)

Our total addressable market

  • There are 82m businesses in our total addressable market
  • Competition is fragmented, varying by geography
  • Sage is the only global company who can take a company from start-up through scale up to enterprise with Sage Business Cloud

Financial performance and outlook

In FY17 we once again achieved our guidance targets. In FY18 we have raised our guidance as we continue on the pathway to accelerated growth.

Revenue categories

Our £1.7bn revenue is made up as follows:

  • Recurring revenue, comprising software subscription revenue from subscription contracts and maintenance and support from on-plan customers
  • Processing revenue comprising payroll and payments revenue
  • Software and software related services (SSRS revenue), comprising licences and services (e.g. training,  implementation)