IFS, the global cloud enterprise software company, reported its financial results for Q3 year-to-date (YTD) ending September 30, 2022. IFS posted strong financial performance with Annual Recurring Revenue (ARR) increasing by 38 percent year on year (YOY) and cloud revenue growth of 104 percent Vs. 2021 Q3 YTD. The company attributes its continued success to its dogmatic commitment to delivering a frictionless experience to its customers and a product strategy that meets real market demand, and provides the capabilities business leaders are looking for today to mitigate risk, and tomorrow, to future proof their business.
IFS also posted an increase in Software revenue of 26 percent versus Q3 YTD 2021: the increase in bookings has been driven by a combination of new customer names accounting for 44 percent of new ACV, and existing customers upgrading to IFS Cloud at an increased pace with the IFS Momentum upgrade program.
The company’s ability to differentiate by providing embedded innovation such as AI, ML, IoT, automation and advanced analytics across ERP, EAM, and FSM in a composable way means companies have a real choice when it comes to their business and digital transformation requirements and the pace at which they execute on this, without having to compromise on functionality; a value proposition that is resonating in the company’s target industries.
These differentiators have also earned IFS unrivaled recognition by leading analyst firms such as IDC, Gartner and Forrester over the years. More recently, IFS was listed as #1, per Gartner’s “Global EAM Market Share 2021 by Revenue” report, and named the “Leader for the seventh consecutive time in 2022 Gartner Magic Quadrant for Field Service Management. The company was also named a “Leader in IDC MarketScape for Worldwide SaaS and Cloud-Enabled Manufacturing ERP” for 2022.
Additionally, IFS has also been named as a Gartner Peer Insight Customers’ Choice for EAM in 2022. These accolades speak to IFS’s dedication in supporting its customers to meet their business goals and that IFS Cloud and IFS’s Success Services are more relevant than ever.
Darren Roos, CEO of IFS, commented: “Our compelling proposition and genuine commitment to our customers continues to serve us well in driving growth for IFS. We are uniquely positioned in the industry with the best asset and service management capabilities”. Roos continued: “We are seeing more and more companies recognize that the ability to orchestrate their assets, people and customers on a single, composable platform across EAM, FSM & ERP helps them to deliver amazing moments of service to their customers. This is a real differentiator.” Roos concluded: “I am grateful to our extended team of partners and employees for staying true to our pledge to add value and continue to innovate and deliver our best to all our customers when it matters most to them.”
Constance Minc, CFO of IFS, said: “Our performance over the first nine months of this year has been exceptional. ARR has increased by 38 percent compared to Q3 2021. This demonstrates the health and resilience of our business.” Minc added: “Over the last few years, we have transformed our revenue model, which is not a simple undertaking but underpinned by IFS Cloud’s leading capabilities, our teams have stayed focused on delivering quarter after quarter, and these latest results are evidence of this.”
Following the acquisition of Ultimo, now rebranded IFS Ultimo, IFS has further extended its share of the EAM market. IFS Ultimo is a flexible and easily deployed EAM solution that caters for companies looking for a best-of-breed, point solution for asset management.
Also, in Q3, IFS was proud to announce the winners of its Change for Good Awards 2022. Now in their second year, the awards recognize and celebrate sustainability excellence throughout the IFS ecosystem. Winners included Volvo Group, Technogroup, Cape Air, and Tucson Electric Power. The initiative was complemented in October with new ESG functionality launched in the latest release of IFS Cloud.
Financial and Operational Highlights for Q3 2022 YTD (January-September 2022):
- Annual Recurring Revenue SEK 5.0bn, an increase of 38 percent YoY
- Q3 YTD 2022 Software Revenue SEK 4.5bn, an increase of 26 percent versus Q3 YTD 2021
- Q3 YTD 2022 Recurring Revenue SEK4.2bn, an increase of 46 percent versus Q3 YTD 2021
- Q3 YTD 2022 Cloud Revenue increased by 104 percent versus Q3 YTD 2021
*Note: all figures are based in Swedish Krona and reported in constant currency. Cloud includes all of IFS Cloud (including IFS Cloud Remote) and cloud deployment of other products.
In line with WorkWave establishing itself as a standalone business at the end of Q2 2021, the performance reported above excludes WorkWave’s contribution to the IFS Group.
Learn more at https://www.ifs.com/about/financial-information
