Software giant Sage Group said revenues had jumped to £1.3bn today as firms continue to plough cash into digital transformation projects sparked by the pandemic.
In a trading update on the nine months to June, Sage said revenues were up nine per cent to £1.3bn today as firms snapped up its cloud-based software.
Bosses said revenues were now set to hit the top end of guidance range of eight to nine per cent for the full year despite the pressures of a looming cost of living crunch this year.
“Sage has performed strongly in the first nine months of the year, with momentum continuing to build, as more businesses choose Sage Business Cloud solutions to support their digital transformation,” said Jonathan Howell, Chief Financial Officer.
“As a result, we now expect organic recurring revenue growth for FY22 to be towards the top end of our guidance range of eight per cent to nine per cent.”
Howell added that the firm was “mindful of broader macroeconomic trends” but was confident that the firm remained “well-positioned for the future.”
The results come after revenues rose by 10 per cent to £464m in the third quarter, with revenues in Sage Business Cloud jumping 20 per cent to £886m.
The growth comes after the pandemic sparked a surge in investment into digital transformation projects and software, as remote working required an overhaul of digital systems.
In 2017, the global cloud storage market was worth around $30bn before rising to more than $6bn in 2020 as the pandemic hit. The market is now set to balloon to more than $390bn by 2028, according to Fortune Business Insights.