Looking forward to 2014
I want to thank you again for all of your efforts this past year. Last week, the Sage Group released our FY2013 financial results and reported organic revenue growth of 6% in North America—a significant acceleration from the 2% that was reported in FY2012! I’m very pleased with the results, and I'm excited about the momentum we have going into FY2014. Your contributions and commitment to our strategy have led to much of our success.
I’ve highlighted some of the key factors that added to our strong growth performance in FY2013, including: high adoption of premium support, solid performance of Sage ERP X3, continued success of our payments business, and overall effective execution of all of our strategic initiatives.
Sage Business Care remains a primary driver of growth in North America and is responsible for the shift toward recurring revenue. In FY2013, we saw significant growth in new license revenue—including over 50% growth in new customer units. Our growth in new license acquisition also contributed to strong overall maintenance and support revenue.
I am especially excited about the standout performance of Sage ERP X3, with revenue increasing by 48%, and new customer acquisition more than doubling during the year—with 120% growth in new customer units. The investments we've made in Sage ERP X3 and our continued focus on this solution are really paying off.
We saw the number of customers who use integrated payments grow to over 12,400, with an associated increase in cross-sell revenue by 20%. Other integrated services, including Sage CRM and Sage Intelligence, also delivered results—which emphasizes their strategic importance in a cohesive and holistic product offering.
Subscription is another strategic initiative that continues to gain traction. By removing the initial price barrier and making ERP solutions more affordable to smaller businesses, we are continuing to see the adoption of subscription pricing. In fact, 163 partners have sold at least one subscription transaction—and subscription revenue has doubled over the last six months.
By providing new and existing customers the choice to add new technology on their own terms and at the right time, we are differentiated and in a strong position to continue to drive growth. Our Sage Data Cloud allows existing customers to leverage their on-premises investment through the adoption of cloud-based mobile connected services to further enhance the capabilities of their existing systems.
Our strategy is working, and growth is accelerating. I’m proud of what we’ve accomplished together and appreciate the role you play and all that you do to serve our joint customers. Thank you for your continued commitment to Sage. For full details on our FY2013 results, please review the annual report on: www.Sage.com
I wish each of you a strong finish for your business in 2013, a wonderful holiday season, and a very happy and prosperous new year. Here’s to a great FY2014!
Warmest regards,
Joe Langner
EVP, General Manager
Sage Mid-Market Solutions |
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