IFS, the global cloud enterprise software company, announced its financial results for the quarter ending March 31st, 2023, with recurring revenues up a significant 48 percent year on year and cloud and software revenues up 55 percent and 44 percent respectively. The company cites strong penetration in all its markets and a solid performance across all solution segments.
The current economic dynamics are challenging CIOs to prioritize technology investments that help build agility and resilience in their business. Concurrently, they must balance the need to lower their TCO (Total Cost of Ownership) with the imperative of accelerating business value realization through increased productivity and efficiency. Globally, companies continue to pursue customer loyalty through differentiation and innovation to achieve competitive advantage.
These trends and challenges are reflected in the increased demand IFS is seeing for cloud technology across FSM, PSO, ERP and ESM from large asset-centric companies, both existing customers and new, including RES, Enercare,KAN, HEXPOL, Lujatalo Oy, MyDentist,and NCC. EAM remains a strong revenue driver for the company.
As well as delivering a strong and consistent financial performance, IFS continues to be acknowledged for its software and services, which combined make it possible for customers to buy, consume and update their technology in a way that creates the most value and makes them evergreen. As CEO Darren Roos enters his sixth year at the helm of the company, the product strategy is set to remain focused on its core industry-specific product offerings and delivering innovation and flexibility as companies build their composable enterprise.
IFS CEO Darren Roos commented: “I am very proud that we are taking our performance trend from 2022 into 2023. As well as the strength of our technology and the trust our customers place in us, our strong Q1 performance is underpinned by contribution from our FY22 acquisitions which are all performing to plan. Over the past 5 years we’ve worked hard to improve the agility, quality and resilience of our business model and these investments are paying off as we continue to create shareholder value despite the macroeconomic uncertainty.”
IFS Chief Financial Officer, Matthias Heiden, commented: “Q1 saw raised levels of economic uncertainty driving businesses to rethink their technology vendor landscape and seek out those that are showing strong financial performance, innovative in their product offering and agile in their delivery. For IFS, Q1 shows positive and robust results, with our Cloud revenues up by 55% and our recurring revenue as a share of total revenue at 75%.” Heiden continued: “These strong results highlight the relevance of IFS in its markets and that we are pursuing the right growth strategy – one which is all about focus.”
Financial* and Operational Highlights for Q1 FY2023:
- Q1 FY2023 software revenue was EUR 186m, an increase of 44 percent versus Q1 2022
- Q1 FY2023 recurring revenue was EUR 176m, an increase of 48 percent versus Q1 2022
- Q1 FY2023 cloud revenue increased 55 percent versus Q1 2022
- Q1 FY2023 net revenue was EUR 236m, an increase of 38 percent versus Q1 2022
*Note: all figures based in Euros and reported in constant currency.
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.
