Sage shares fell nearly 5% on Wednesday after the company disappointed expectations on organic revenue growth.
Organic revenues grew by 6.3% over the final three months of 2017, the company´s fiscal 2018 first quarter, behind management´s earlier guidance for 8% growth.
“We expect acceleration throughout the year including a stronger Q2 and we reiterate our full year guidance of around 8% organic revenue growth and around 27.5% organic operating margin for FY18,” said Steve Hare, chief financial officer at Sage.
“As we outlined at the time of the full year results, we have invested heavily in sales training in the first quarter to set up the business for success, particularly in Sage Business Cloud, resulting in the delay of some revenue into the second quarter. Quarterly phasing of organic revenue growth is therefore expected to be similar to prior financial years,” explained Hare.
Sage shares have had a strong run, and still remain up about 25% over the past year.
In November, the company beat results forecasts and indicated it was looking at possible acquisition targets.