- Surge in demand for cloud pushes Q1 cloud revenue up 67% year on year
- Share of recurring revenue now at 70% of total revenue
- Software revenue growth is up 25% year on year
- Investment from Hg in IFS & WorkWave at a value of $10bn reinforces differentiated positioning and market opportunity
London, UK: IFS, the global cloud enterprise software company, today announced its financial results for the quarter ending March 31, 2022 with ACV (annual contract value) bookings up 78 percent year on year and recurring revenues up a significant 45% year on year.
The company continues to report growing demand for its cloud technology resulting in an increase in cloud revenues of 67% year on year despite market challenges and geopolitical disruptions. Throughout 2021 and into 2022 the company has also consistently increased its recurring revenues as a share of software revenues to 92% in Q1.
This outstanding performance enables IFS to boast a very healthy and strong business, which provides performance predictability beyond 2022. This combined with the Hg investment in March, at a valuation of $10bn firmly secures the company position as a leading global cloud enterprise software vendor
IFS is uniquely positioned in the market thanks to IFS Cloud – a single, composable technology platform that enables customers to differenciate on service. With specific industry solutions and capabilities for asset management and ERP, what makes IFS really stand out is how this combines with the company’s leading service management capabilities. Never before have there been such high expectations on how a company serves it customers, which makes IFS Cloud’s ability to deliver amazing moments of service hugely compelling – for many customers, it is their own basis of differentiation.
In Q1 alone, this was recognized by industry analyst IDC who named IFS a Leader in both its MarketScape for WorkWide Manufacturing Service Life Cycle Management Platforms and its MarketScape for Worldwide Field Service Management Solutions for Utilities.
The investments made into IFS Cloud have been well received by customers and continue to drive demand thanks to new functionality developed into the IFS Cloud April 2022 release, as well as the availability of Customer Expierenice Management, which is now integrated in IFS Cloud following the acquisition of Customerville just nine months ago.
IFS CEO Darren Roos commented: “For the last four years IFS has consistently outperformed the market and Q1 is an extension of this trend with ACV bookings up 78 percent year on year. Our first quarter of 2022 has delivered exceptional results across the board and I am proud that these continue to be a validation of our strategy.” Roos continued: “These results combined with the recent Hg investment, provide IFS with the backing of now three highly experienced investors allowing us to explore how we can further disrupt the market and offer choice.” He concluded: “Both through our software and our success services we are making it possible for customers to buy and consume technology in the way that creates the most value for them, so they can deliver amazing Moments of Service™ to their customers.”
IFS Chief Financial Officer, Constance Minc, commented: “Q1 is another quarter where IFS has delivered great performance. This is particularly significant because we are achieving this across all our metrics which paints the picture of a strong and healthy business focused on growth and profitability.” Minc continued: “Q1 shows a continued shift in the quality of the revenue mix with 70% of the total revenue base now being recurring; these strong results highlight the relevance of IFS in its market and demonstrate we have the right growth strategy.”
Financial* and Operational Highlights for Q1 FY2022:
- Q1 FY2022 software revenue was SEK 1.3bn, an increase of 25 percent versus Q1 2021
- Q1 FY2022 recurring revenue was SEK 1.2bn, an increase of 45 percent versus Q1 2021
- Q1 FY2022 cloud revenue increased 67 percent versus Q1 2021
- Q1 FY2022 net revenue was SEK 1.7bn, an increase of 15 percent versus Q1 2021
*Note: all figures based in Swedish Krona 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.
IFS develops and delivers cloud enterprise software for companies around the world who manufacture and distribute goods, build and maintain assets, and manage service-focused operations. Within our single platform, our industry specific products are innately connected to a single data model and use embedded digital innovation so that our customers can be their best when it really matters to their customers—at the Moment of Service™. The industry expertise of our people and of our growing ecosystem, together with a commitment to deliver value at every single step, has made IFS a recognized leader and the most recommended supplier in our sector. Our team of 4,500 employees every day live our values of agility, trustworthiness and collaboration in how we support our 10,000+ customers. Learn more about how our enterprise software solutions can help your business today at ifs.com.