Sage reports slight Q3 slowdown in North America

30th Jul 2024 08:09

(Sharecast News) - Shares in Sage fell sharply on Tuesday after the enterprise software group reported a slight slowdown in top-line growth in its third quarter.

The company, which provides accounting, financial, HR and payroll tech for businesses, said revenues totalled £1.74bn over the first nine months of its financial year, representing 9% growth on the previous year.

That's down from the 10% growth recorded in the first half, as growth eased in North America - its largest regional unit - from 13% to 12%, with sales there totalling £786m over the nine-month period.

In the UK, Ireland, Africa and APAC combined region, sales growth held steady at 8%, with sales rising to £497m. In Europe, nine-month sales were up 6%, in line with the first half, at £454m.

"Sage performed well in the first nine months, delivering revenue growth in line with our expectations and sustaining good momentum, despite ongoing macroeconomic uncertainty," said chief financial officer Jonathan Howell.

The company reiterated its guidance given at the half-year stage, for full-year revenue growth in line with the first half and operating margins to "trend upwards".

"Our continued success in transforming the workflows of small and mid-sized businesses, supported by our focus on innovation and investment in AI, underpins confidence in our strategy to deliver sustainable, efficient growth," Howell said.

The stock was down 3.7% at 1,046.82p by 0912 BST.