Financial Information

  • 2022 Q3 Update
  • 2022 H1 Update
  • 2022 Q1 Update

Financial summary


Year To Date, January - September 2022

 

    • Annual Recurring Revenue SEK 5.0bn, an increase of 38 % YoY

    • Q3 YTD 2022 Software Revenue SEK 4.5bn, an increase of 26 % versus Q3 YTD 2021

    • Q3 YTD 2022 Recurring Revenue SEK4.2bn, an increase of 46 % versus Q3 YTD 2021

    • Q3 YTD 2022 Cloud Revenue increased by 104 % versus Q3 YTD 2021






Message from the CEO


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. 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. 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.

Darren Roos
Chief Executive Officer
IFS








Financial summary


First Half, January - June 2022

 

    • H1 2022 Software Revenue was SEK 2.8bn an increase of 22 % versus H1 2021

    • H1 2022 Cloud Revenue increased 56 % versus H1 2021

    • H1 2022 Net Revenue was SEK 3.7bn, an increase of 14 % versus H1 2021

    • Annual Recurring Revenue is equiv. SEK 4.5bn an increase of 33 % YoY


Message from the CEO


Our H1 results establish the importance of investing in the things our customers care about – a quality solution that end-users enjoy using and that is implemented quickly and effectively. Building a strong and healthy business, whilst delivering growth has been a key theme for the first half of the year as we see macro economic challenges starting to emerge. Our differentiation of empowering our customers to deliver amazing moments of service to their customers is compelling, but in the immediate term, the speed and extent of the value we can return to a customer in how they navigate the headwinds is key.

Darren Roos
Chief Executive Officer
IFS





Financial summary


Year To Date, January - March 2022

 

  • Q1 FY2022 software revenue was SEK 1.3bn, an increase of 25% versus Q1 2021

  • Q1 FY2022 recurring revenue was SEK 1.2bn, an increase of 45% versus Q1 2021

  • Q1 FY2022 cloud revenue increased 67% versus Q1 2021

  • Q1 FY2022 net revenue was SEK 1.7bn, an increase of 15% versus Q1 2021


Message from the CEO


For the last four years IFS has consistently outperformed the market and Q1 is an extension of this trend with ACV bookings up 78% 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. 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. 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.

Darren Roos
Chief Executive Officer
IFS



Recent financial year information

  • 2021
  • 2020
  • 2019
  • Q4 Update

    Financial Summary


    Full Year, January - December 2021
    • FY2021 software revenue was SEK bn 4.928, an increase of 22 percent versus 2020
    • FY2021 recurring revenue was SEK bn 4.061, an increase of 30 percent versus 2020
    • FY2021 cloud revenue increased 105% percent versus 2020
    • FY2021 net revenue was SEK bn 6.767, an increase of 14 percent versus 2020

    Message from the CEO


    Four consecutive years of double-digit growth is something the entire organization is hugely proud of, particularly in view of the challenging circumstances we’ve experienced since 2020. In 2021, our goal to help companies deliver their greatest Moment of Service™ also became a reality through our M&A strategy. We successfully integrated two companies into IFS and, since our acquisiton of Axios systems in June, have increased subscription bookings for IFS assyst by 236 percent compared to the same period in 2020. The numbers paint the picture of a strong and healthy business and I am particularly delighted that we are not compromising on any other metrics to achieve this level of sustained growth.


    Darren Roos
    Chief Executive Officer
    IFS
  • Q3 Update

    Financial Summary


    Year To Date, January - September 2021
    • Software revenue was SEK 3.4bln, an increase of 17% Year on Year
    • Recurring revenue was SEK 2.75bln, an increase of 19% Year on Year and representing 81% of software revenue
    • Cloud revenue increased 104% Year on Year representing more than 29% of software revenue

    Message from the CEO


    At heart, IFS is a technology-driven software company and the investments we have – and continue to make – into the IFS Cloud platform and our customer-facing services evidence themselves in these stellar results. The strong growth in software revenue is testament to us attracting new customers, but also in our commitment to our current customers whose ongoing success is of paramount importance to us. I’m proud of the work that our team has done to create market differentiation with our industrial asset and service capabilities, which continues to create positive momentum.

    Darren Roos
    Chief Executive Officer
    IFS
  • H1 / Q2 Update

    Financial Summary


    First Half, January–June 2021
    • H1 software revenue was SEK 2.6bn, an increase of 20% Year on Year
    • H1 recurring revenue was SEK 2bn, an increase of 27% Year on Year and representing more than 80% of software revenue
    • H1 cloud revenue increased 79% Year on Year representing 39% of software revenue
    • Proportion of license revenues from net new customers 54% of total

    Message from the CEO


    IFS is a technology led company with the single goal to make the latest technology advancements available to our customers in a way that creates value fast, has a low total cost of ownership, and is easy to consume and use. H1 is evidence that our strategy to focus on this and to build agility into our product operations, so customers can respond to the market fast is working. Customers can see the difference in what IFS is making, and that ensuring their success is why we do what we do. They also see that very few other vendors offer flexibility in deployment, depth in product and powerful technology while shaping their business around customer experience. Delivering our Moment of Service to our customers is a very real mission for IFS, and the sharp rise in cloud adoption is testimony to that.

    Darren Roos
    Chief Executive Officer
    IFS
  • Q1 Update

    Financial Summary


    First Quarter, January–March 2021
    • Q1 software revenue was SEK 1.2 billion, an increase of 13 percent Year on Year
    • Q1 recurring revenue was SEK 1.0 billion, an increase of 24 percent Year on Year and representing more than 80 percent of software revenue
    • Q1 cloud revenue increased 102 percent Year on Year representing more than 40 percent of software revenue (cloud revenue defined as all revenue streams associated with a cloud deployment deal)
    • Proportion of license revenues from new customers up to 57 percent

    Message from the CEO


    The launch of IFS Cloud in Q1 was the most important launch in company history. It was a milestone that delivers on our promise of helping customers create truly amazing moments of service. The impressive performance and growth of our cloud and service management business is evidence that customers value that we understand their needs and are delivering products that support their journey. In addition to our organic growth, we are strengthening our proposition with the addition of Axios Systems to ensure we remain the de facto leader for companies that want to differentiate in how they deliver and profit from service.

    Darren Roos
    Chief Executive Officer
    IFS
  • Q4 Update

    Financial Summary


    Full Year, January - December 2020
    • FY2020 software revenue was MSEK 5,092, an increase of 26 percent versus 2019
    • FY2020 recurring revenue was MSEK 4,081, an increase of 43 percent versus 2019
    • FY2020 cloud revenue increased 60 percent versus 2019
    • FY2020 net revenue was MSEK 7,211, an increase of 14 percent versus 2019
    • In addition, service business license revenue grew 105 percent versus 2019 while aerospace and defense license revenue grew 37 percent.

    Message from the CEO


    I think that every CEO will have been affected one way or another by 2020. Like many, we had to adapt as individuals and as a business, but the passion this team has for our customers continued to shine. I am hugely proud of that. I am also really proud to see that a significant part our license revenue has come from new logos, customers who have moved away from their legacy vendor; this combined with our performance in recurring revenue points the performance of a very strong business. 2021 will be a hugely important year for IFS as we launch IFS Cloud on March 10th.

    Darren Roos
    Chief Executive Officer
    IFS
  • Q3 Update

    Financial Summary


    Year To Date, January - September 2020
    • Net revenue was 5,111 million SEK (US $544 million), an increase of 12 percent versus Q3 YTD 2019
    • Service management license revenue grew 86 percent versus Q3 YTD 2019
    • Recurring revenue increased 41 percent versus Q3 YTD 2019
    • Cloud revenue increased 59 percent versus Q3 YTD 2019

    Message from the CEO


    Whether a company manufactures medical equipment, operates large energy utilities or manages a complex infrastructure, in the eyes of their customer, success or failure is realized at the moment of service—the moment when it all comes together. Organizations are transforming their businesses around this, and IFS is uniquely positioned to capitalize on this groundswell of opportunity. Our customer base continues to expand as we help more businesses grow, create value and improve delivery quality. IFS is the only vendor that can provide an integrated solution set across the customer’s entire operation.

    Darren Roos
    Chief Executive Officer
    IFS
  • H1 / Q2 Update

    Financial Summary


    First Half, January–June 2020
    • Software revenue was SKr 2,382 million, an increase of 26 percent
    • Cloud revenue showed an increase of 56 percent
    • Consulting revenue amounted to SKr 1,071 million, an increase of 0 percent (-1 percent in constant currency)
    • Net revenue totaled SKr 3,482 million, an improvement of 16 percent (15 percent in constant currency)
    • Adjusted EBITDA totaled SKr 881 million, an improvement of 33 percent (32 percent in constant currency)

    Message from the CEO


    Our focus remains on delivering value to our customers and never before has this mission been more critical to their survival. Our close collaboration with our partners has ensured we remain relevant, which is reflected in our results. Consulting is a function of our partners hitting scale, and taking over the projects. This demonstrates our growth is where we want it to be. Our recent announcement about EQT and TA Associates’ ownership is a real endorsement of our strategy and our enormous potential to continue to capture market share.

    Darren Roos
    Chief Executive Officer
    IFS
  • Q1 Update

    Financial Summary


    First Quarter, January–March 2020
    • License revenue amounted to SKr 409 million (Q1 '19: SKr 295 million),
      an increase of 39 percent (36 percent in constant currency)
    • Maintenance revenue was SKr 558 million (Q1 '19: SKr 448 million),
      an improvement of 25 percent (22 percent in constant currency)
    • Consulting revenue amounted to SKr 583 million (Q1 '19: SKr 512 million),
      an increase of 14 percent (11 percent in constant currency)
    • Net revenue totaled SKr 1,765 million (Q1 '19: SKr 1,410 million),
      an improvement of 25 percent (22 percent in constant currency)
    • Adjusted EBITDA was SKr 318 million (Q1 '19: SKr 259 million),
      an improvement of 23 percent (18 percent in constant currency

    Message from the CEO


    Despite the economic headwinds presented by the Covid-19 pandemic, license revenue grew 39% compared to Q1 2019. Recurring revenues were also steady as customers depend on their IFS solutions to run their most mission critical business processes. On the back of this strong revenue development in Q1, EBITDA remains stable and is underpinned by ongoing initiatives to improve the IFS cost base. These initiatives support the short-term EBITDA performance while enabling our business to quickly rebound once the global lockdowns are eased. By taking prudent cost-control measures, we are building further resilience into the business, which we believe could see downward pressure through the next two quarters. Our ongoing focus remains fixed on taking precautions not only to protect our staff and community, but to ensure our customers continue to receive the stellar product, service and support they deserve.

    Darren Roos
    Chief Executive Officer
    IFS
  • Q4 Update

    Financial Summary


    Year-To-Date, Jan – Dec 2019
    • FY 2019 license revenue was SEK 1,518 (US$ 161 million), an increase of 32% versus 2018
    • FY 2019 maintenance revenue was SEK 1,911 million (US$ 202 million), an increase of 16%
    • FY 2019 consulting revenue was SEK 2,174 million (US$ 230 million), an increase of 14%
    • FY 2019 adjusted EBITDA was SEK 1,454 million (US$ 154 million), an increase of 32%
    • FY 2019 net revenue was SEK 6,317 million (US$ 668 million), an increase of 20%
    • IFS’s strategic growth markets also saw double-digit increases in license revenues, with Aerospace & Defense growing 38% and Field Service Management up 51% versus 2018
    • IFS cloud and SaaS revenue for FY 2019 increased 56% versus the same period of 2018 (excluding Astea and WorkWave)

    Message from the CEO


    I am incredibly proud to lead the team that has delivered this impressive performance. Our employees clearly understand our focus, feel ownership of our progress, and stand united in a passion for our customers. Our differentiator is not that we talk about customer centricity, but that we commit to delivering customer value. The investments made last year into our product and partner enablement will benefit the company in the long-term and will have a positive impact for our customers – and our own business – in 2020 and beyond.

    Darren Roos
    Chief Executive Officer
    IFS
  • Q3 Update

    Financial Summary


    Year-To-Date, Jan – Sep 2019
    • License revenue amounted to SKr 1,081 million (YTD '18: SKr 736 million), an increase of 47 percent (40 percent in constant currency)
    • Maintenance revenue was SKr 1,394 million (YTD '18: SKr 1,205 million), an improvement of 16 percent (11 percent in constant currency)
    • Consulting revenue amounted to SKr 1,592 million (YTD '18: SKr 1,351 million), an increase of 18 percent (13 percent in constant currency)
    • Net revenue totaled SKr 4,558 million (YTD '18: SKr 3,713 million), an improvement of 23 percent (17 percent in constant currency)
    • Adjusted EBITDA was SKr 1,001 million (YTD '18: SKr 707 million), an improvement of 41 percent (38 percent in constant currency)

    Message from the CEO


    The success of our business transformation is apparent as Q3 now marks our sixth straight quarter of growth above 20 percent. Over the last 18 months, we’ve gone from being a fragmented global business to a fast-growing organization operating globally at scale. All the while, we’ve never lost sight of our commitment to providing the best experience for our customers, which remains our guiding principle.

    Our topline growth does not come from extracting revenue from our installed base through tactics like compliance audits. On the contrary, we are winning half of our license revenues from new customers. I believe this speaks volumes about our ability to beat the larger legacy vendors with a proposition that offers what the others don’t: choice and a focus on real customer value.

    Darren Roos
    Chief Executive Officer
    IFS
  • H1 / Q2 Update

    Financial Summary


    Second Quarter (April–June 2019)
    • License revenue amounted to SKr 398 million (Q2 '18: SKr 291 million), an increase of 37 percent (32 percent in constant currency
    • Maintenance revenue was SKr 464 million (Q2 '18: SKr 404 million), an improvement of 15 percent (11 percent in constant currency)
    • Consulting revenue amounted to SKr 562 million (Q2 '18: SKr 472 million), an increase of 19 percent (15 percent in constant currency)
    • Net revenue totaled SKr 1,586 million (Q2 '18: SKr 1,326 million), an improvement of 20 percent (15 percent in constant currency)
    • Adjusted EBITDA was SKr 403 million (Q2 '18: SKr 205 million), an improvement of 97 percent (92 percent in constant currency)

    Message from the CEO


    Reflecting on Q2 of this year, I’m simply blown away by what we accomplished together as we focused on delivering sensible solutions to our customers. IFS is the only vendor of scale in our sector that stands on a principle of choice, providing an experience free from ultimatums. Now that we see what this IFS is truly capable of, expectations for the second half of the year remain high and I am pleased to have increased our guidance for the remainder of the year to deliver 2019 revenues of $711 million, or 6.35 billion SEK, an increase that represents a 21% increase year-on-year.

    Darren Roos
    Chief Executive Officer
    IFS
  • Q1 Update

    Financial Summary


    First Quarter (January–March 2019)
    • License revenue amounted to SKr 295 million (Q1 '18: SKr 177 million), an increase of 67 percent (57 percent in constant currency)
    • Maintenance revenue was SKr 448 million (Q1 '18: SKr 382 million), an improvement of 17 percent (11 percent in constant currency)
    • Consulting revenue amounted to SKr 512 million (Q1 '18: SKr 411 million), an increase of 25 percent (18 percent in constant currency)
    • Net revenue totaled SKr 1,410 million (Q1 '18: SKr 1,091 million), an improvement of 29 percent (22 percent in constant currency)
    • Adjusted EBITDA was SKr 259 million (Q1 '18: SKr 153 million), an improvement of 69 percent (65 percent in constant currency)

    Message from the CEO


    Our customer obsession continues to drive our financial results as we once more massively outpace the market, and our numbers speak for themselves. As the fastest growing ERP company of scale, we are well positioned to capture a much bigger piece of the market in 2019 and beyond. Customers no longer accept the annual audits, the made-up compliance tricks, or the upgrade ultimatums, which have become the new normal. Quite simply, customers are realizing IFS is a better alternative.

    Darren Roos
    Chief Executive Officer
    IFS