Peachtree 2015 Annual Report Download - page 37

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ACCELERATIONPHASE
Priorities
– Continue to put customers at the heart of everything we do
– Leverage our global operating model to accelerate new customer acquisition
– Driveefficient development cycles to continue to bring the latest technologies
and features to our customers
Revenue growth
Revenue from Local growth products is expected to continue to grow at mid-single digit
rates, while revenue from Global productsis expected tobecome more material due to the
anticipatedacceleration of new customer acquisition. The suppressing effect of migrating
SSRSrevenues to a predominantly subscription model is expected to diminish as the transition
progresses to an advanced stage. These features combined are expected to yield overall revenue
growth in excess of 6%.
Organic revenue growth
>6%
Increasing
Margin
Aer the transition phase, the heightened investment in marketing functions as a proportion
of revenue is expected to diminish as we leverage the newly installed global operating model.
Disciplined spending combined with accelerating revenue growth is expected to lead to margin
expansion from 27%.
Organic operating margin
>27%
Increasing
Revenue mix
The transition of relevant relationshipstowards subscriptionis expected to be largely
complete,witha base of SSRS and standalone maintenance and support revenue remaining.
Global product uptake and cross-selling ofmultiple services is expected to accelerate, further
contributing tosubscription and processing within the revenue mix.
Recurring
Subscription
Traditional maintenance
and support
Soware and soware
related services
Processing
The Sage Group plc | Annual Report & Accounts 2015 35
FINANCIAL STATEMENTSGOVERNANCESTRATEGIC REPORT