Case Study: Sage grew subscriptions 32% and reached 70% recurring revenue on Zuora

Key results

The challenge

Sage, a business and accounting software company with a 30-plus-year legacy of selling on-premise licenses, faced declining traditional software sales amid competition from cloud-native startups. It needed to transition its perpetual-license model to a recurring subscription business.

The solution

Sage adopted the Zuora platform to manage the order-to-cash lifecycle for its subscription offerings and support the transition to a recurring-revenue business model.

The results, in context

Sage reported subscription growth of 32%, up from 29% the prior year, alongside recurring revenue growth of 10.4% and organic revenue growth in excess of 6%. Recurring revenue reached 70% of total revenue, and subscription contracts surpassed 1 million, up from 450,000 two years earlier.

Products used