Sage is a longstanding British accounting software company that we had covered previously, before landing on a positive Buy rating in 2019. We saw the transition from legacy incumbent to cloud platform as underappreciated by the market. Through various trade shows, and even attending user forums, we concluded that Sage would be able to surprise the market on cloud revenue and recurring subscription growth. A combination of low expectations, but strong balance sheet, cash flows, and low valuation was also supportive at that point in time. We addressed client pushbacks, and developed a deep understanding of competitors such as Xero and intuit. We closed the idea four years later as the idea became more consensus and fairly valued. Our body of work on Sage, since visiting the company in Newcastle back in 2013 has reached >20 content pieces.
