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sage Trading update for the nine months ended 30 June 2021 The Sage Group plc ( the " Group " ) today announces its trading update for the nine months ended 30 June 2021 . Financial performance Organic¹ Revenue Mix Revenue by Category Q3 21 YTD Q3 20 YTD Growth YTD Recurring Revenue Other Revenue ( SSRS² & Processing ) Organic Total Revenue £ 1,220m £ 1,162m + £ 58m + 5 % ₤ 109m £ 134m - £ 25m -18 % £ 1,329m £ 1,296m + ₤ 33m + 3 % Portfolio View of Recurring Revenue Future Sage Business Cloud opportunity £ 1,103m £ 1,031m + £ 72m + 7 % Non - Sage Business Cloud Recurring Revenue £ 116m £ 1,220m £ 131m - £ 15m -11 % £ 1,162m + £ 58m + 5 % Sage has performed strongly in the first nine months of the year , as momentum in the business continues to strengthen . Recurring revenue increased by 5.0 % to £ 1,220m , supported by software subscription growth of 11 % to £ 920m ( Q3 20 YTD : £ 830m ) . As a result , subscription penetration increased to 69 % ( Q3 20 YTD : 64 % ) . Regionally , North America achieved recurring revenue growth of 7 % to £ 475m ( Q3 20 YTD : £ 445m ) mainly reflecting a good performance from Sage Intacct , with continued strength in new customer acquisition . In Northern Europe recurring revenue increased by 4 % to £ 292m ( Q3 20 YTD : £ 281m ) , driven by accelerating growth in cloud native solutions including Sage Accounting , together with further growth in Sage 50 cloud connected . In International , recurring revenue grew by 4 % to £ 454m ( Q3 20 YTD £ 436m ) , with particular strength in cloud connected products , together with growth in cloud native solutions . In terms of the portfolio view of revenue , the Future Sage Business Cloud Opportunity ( products within , or to be migrated to , Sage Business Cloud ) increased by 7 % to £ 1,103m . This was underpinned by strong growth in cloud native recurring revenue of 32 % to £ 205m ( Q3 20 YTD : £ 155m ) , primarily through new customer acquisition , and supported by migrations to both cloud native and cloud connected solutions . Sage Business Cloud penetration increased to 66 % ( Q3 20 YTD : 60 % ) . In the third quarter , recurring revenue grew by 6.1 % to £ 409m ( Q3 20 : £ 385m ) . This was driven principally by an acceleration in the growth of cloud native revenue , up 37 % to £ 74m ( Q3 20 : £ 54m ) , together with continued growth in cloud connected . This growth has been strengthened by the Group's programme of additional strategic investment in sales , marketing and innovation . Other revenue ( SSRS and processing ) decreased by 18 % to £ 109m in the first nine months of the year , and by 9 % to £ 31m ( Q3 20 : £ 34m ) in the third quarter , in line with our strategy to transition away from licence sales and low margin professional services implementations . Total Group revenue increased by 2.6 % to £ 1,329m in the first nine months of the year , and by 5.0 % to £ 440m ( Q3 20 : £ 419m ) in the third quarter . 1 All numbers in this document are organic . Organic results exclude contributions from assets held for sale . 2 Software and software - related services .