Sage Group PLC Update on financial reporting (9821I)
08 Dezember 2022 - 8:00AM
UK Regulatory
TIDMSGE
RNS Number : 9821I
Sage Group PLC
08 December 2022
Update on financial reporting
8 December 2022
As announced in Sage's FY22 results on 16 November 2022, Sage
intends to evolve its financial reporting by giving greater
emphasis to underlying revenue and profit measures, and by amending
the presentation of its regional reporting. These changes will be
introduced in Sage's Q1 23 trading update, and will apply to Sage's
future financial reporting. Further details are set out below.
To facilitate comparison with prior periods, the appendix to
this announcement sets out key reporting figures for FY22
reflecting these changes. Sage's primary annual and interim
financial statements and notes to the accounts will not be
impacted.
Focus on underlying measures
In addition to statutory financial reporting measures, Sage also
provides non-GAAP Alternative Performance Measures (APMs) including
underlying and organic measures, to help assess financial
performance. Underlying measures allow management and investors to
understand the performance of the Group on a constant currency
basis excluding recurring and non-recurring items, while organic
measures also adjust for the impact of acquisitions and disposals
[1] .
Going forward, Sage will provide financial metrics and analysis
including the breakdown of revenue by category, by strategic
product portfolio and by region, together with Annualised Recurring
Revenue (ARR), on an underlying basis alongside organic growth
rates. Sage Business Cloud penetration and subscription penetration
will also be provided on an underlying basis. Previously this
information was provided primarily on an organic basis. Certain
organic revenue and profit measures including recurring and total
revenue by region will continue to be provided in the interim and
full year results.
Sage believes that these changes will enable a clearer
understanding of both the organic and inorganic performance of the
Group.
Change to regional reporting
Sage also intends to amend the presentation of its regional
reporting, to reflect recent changes to the way in which the Group
manages its operations. Going forward, Sage will report performance
across the following regions: North America, comprising the US,
Sage Intacct and Canada; UKIA, comprising Northern Europe (UK &
Ireland) and Africa & APAC; and Europe, comprising France,
Central Europe and Iberia.
Enquiries: Sage: +44 (0) 7721 599502 FGS Global: +44 (0) 20 7251 3801
James Sandford, Investor Conor McClafferty
Relations
David Ginivan, Corporate Sophia Johnston
PR
APPENDIX - FY22 underlying measures [2]
Underlying measures (GBPm) Q1 22 H1 22 Q3 22 FY 22
YTD
Recurring revenue by portfolio
[3]
Cloud native 90 191 308 435
Cloud connected 190 385 589 842
Sage Business Cloud 280 576 897 1,277
Products with potential to migrate 117 228 343 426
Future Sage Business Cloud
Opportunity 397 804 1,240 1,703
Non-Sage Business Cloud 35 70 105 142
Recurring revenue by region
North America 174 357 562 787
UKIA [4] 134 273 417 568
Europe 124 244 366 490
Recurring revenue by category
Software subscription 337 688 1,064 1,464
Other recurring 95 186 281 381
Total recurring revenue 432 874 1,345 1,845
Other revenue (SSRS) 31 61 84 104
Total revenue 463 935 1,429 1,949
Underlying operating profit 183 377
Annualised Recurring Revenue
(ARR) 1,809 2,057
of which cloud native 448 560
------ ------ ------ ------
Breakdown of revenue by region
Recurring revenue Total revenue
Underlying measures (GBPm) H1 22 FY 22 H1 22 FY 22
--------- --------- ------- -------
North America
US 305 674 323 704
o f which Sage Intacct 102 231 105 237
Canada 52 113 54 115
UKIA
Northern Europe (UK & Ireland) 208 428 212 434
Africa and APAC 65 140 72 153
Europe
France 128 258 136 273
Central Europe 56 112 71 136
Iberia 60 120 67 134
--------- --------- ------- -------
[1] APMs including underlying and organic measures are defined
in Appendix 1 (on pages 13 and 14) of Sage's FY22 full year results
announcement, dated 16 November 2022.
[2] The figures set out above are provided at FY22 exchange
rates. In line with Sage's APM definitions, they will be
retranslated at current period exchange rates when reported as
comparator figures during FY23, to enable the Group's performance
to be assessed on a constant currency basis.
[3] As Other revenue (SSRS) now accounts for only 5% of total
revenue, the breakdown of revenue by strategic product portfolio
will only be provided on a recurring revenue basis going
forward.
[4] United Kingdom, Ireland, Africa and APAC
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