Sage Group plc, the Newcastle-based FTSE 100 global tech business, said its total revenue increased 10% to £1.63 billion in the first nine months of its financial year, and by 10% to £543 million in the third quarter.

Sage Group sells accounting, financial, HR and payroll software to SMEs (small and medium-sized enterprises) internationally.

In a trading update for the nine months ended June 30, 2023, Sage said recurring revenue for the first nine months of the year increased 12% to £1.562 billion, underpinned by a 29% rise in Sage Business Cloud revenue to £1.201 billion.

Software subscription revenue grew by 17% to £1.286 billion, resulting in subscription penetration of 79%.

Regionally, recurring revenue in North America grew by 16% to £702 million, with a strong performance from Sage Intacct together with growth in cloud connected products.

In the UKIA region, recurring revenue increased 11% to £456 million, reflecting strength in cloud native small business solutions and Sage Intacct, alongside growth in Sage 50 cloud.

In Europe, recurring revenue increased 7% to £404 million, with growth across Sage Business Cloud.

Sage Group Chief Financial Officer Jonathan Howell said: “Sage has performed strongly throughout the first nine months, in line with our expectations, as we help small and mid-sized businesses become more productive and resilient.

“Sage continues to build strong momentum, driving the delivery of sustainable, efficient growth. Accordingly, we reiterate our guidance for the full year, as set out in our half year results announcement.”