That means other applications—Sage People, Accounting, Auto Entry and HR—were “growing considerably faster than Intacct,” Howell said during the webcast of this week’s trading update for the period. That puts cloud-native revenue at 15.4 percent of the total organic revenue for the nine months of roughly $1.85 billion, which itself was up 3 percent for the nine months. Recurring revenue rose to about $1.7 billion, an increase of 5 percent over last year’s corresponding period. However, business strengthened over the nine months as third-quarter revenue of roughtly $613.8 million was 5-percent higher than in last year's corresponding period. European companies generally do not provide earnings and sometimes little in terms of revenue, but Sage has substantially expanded the information it provides in the first and third quarter trading updates over the last few years. North American revenue increased to about $662 million, a 7-percent rise over last year’s corresponding period, based largely on Intacct’s performance. Howells says the number is not significant yet the company is starting to see “Some migration from Sage 50 cloud to Intacct” which he expects to grow. In answer to an analyst’s questions, Howells acknowledged the statement on Sage’s website that there are a million small business owners of Sage Accounting, which is strong in the United Kingdom, but did not narrow down the number.
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SAGE NATIVE CLOUD REVS UP 32 PERCENT Featured
Sage reported that cloud native applications grew by 32 percent to approximately $286 million for the nine months ended June 30. CFO Jonathan Howell defined Sage Intacct’s growth only as faster than the 19-percent growth it registered for the second quarter.
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