In 2018/19, the organic recurring revenue increased by +10.8% thanks to higher software subscriptions (+29%) which outpaced the reduction in maintenance revenue (-12%) resulting from the migration of customers to software subscription. The transformation to a SaaS model also led to lower organic SSRS (-18%). Lastly, the organic operating margin was down to 23.7% of revenue (-5.1pt). These characteristics should continue in 2019/20.
20 Nov 2019
Transformation to SaaS in line with expectations
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Transformation to SaaS in line with expectations
Sage Group plc (SGE:LON) | 1,139 -51.3 (-0.4%) | Mkt Cap: 11,445m
- Published:
20 Nov 2019 -
Author:
Hélène Coumes -
Pages:
3
In 2018/19, the organic recurring revenue increased by +10.8% thanks to higher software subscriptions (+29%) which outpaced the reduction in maintenance revenue (-12%) resulting from the migration of customers to software subscription. The transformation to a SaaS model also led to lower organic SSRS (-18%). Lastly, the organic operating margin was down to 23.7% of revenue (-5.1pt). These characteristics should continue in 2019/20.