Financial Information
Our latest Q3 2026 financial results are now published, reporting 24% ARR growth as customers continue to scale Industrial AI adoption across their operations.
Q3 2026 Financial Highlights
Financial Summary
Annual Recurring Revenue (ARR)
%YoY growth
Industrial AI bookings
more thanxfull-year 2025, with a quarter still to go
Recurring Revenue Mix
%of total revenue
Message from the CEO
“Every industrial organization has capacity it isn't using, and the people running it know where it is. Our customers want AI that understands their equipment, their safety rules and how the work actually gets done, and AI that can act on a live job without putting anything at risk. That is what we have spent decades building, and it is why our AI bookings have tripled in just nine months.”
Mark MoffatChief Executive Officer, IFS
Recent financial year information
2026 Financial Information
Financial Summary
Financial highlights for H1 2026:
- Annual Recurring Revenue (ARR): 25% YoY growth
- Cloud Revenue: 24% YoY growth
- Recurring Revenue Mix: 84% of total revenue
Message from the CEO
“Customers are scaling AI across operations onto the factory floor, into the warehouse, and out in the field. As measurable business value is returned, Industrial AI is becoming a clear source of competitive advantage and customers are expanding their use of IFS solutions. Our H1 results reflect the market inflection point we're now seeing.”
Mark Moffat
Chief Executive Officer
IFS
Financial Summary
Financial highlights for Q1 2026:
- Annual Recurring Revenue (ARR): 25% YoY growth
- Cloud Revenue: 24% YoY growth
- Net Retention Rate (NRR): 114%
- Recurring Revenue Mix: 84% of total revenue
Message from the CEO
“We’re seeing a distinct move from AI supporting work to AI performing work, and that’s changing how our customers run their operations. Through targeted investments, strategic partnerships and industry-specific capabilities that solve real challenges, we’re equipping customers with Industrial AI to build the agility that the next wave of global growth demands. As our Q1 financial results demonstrate, IFS is the industrial platform that makes AI actually work in the real world, and that’s never been more valuable.”
Mark Moffat
Chief Executive Officer
IFS
2025 Financial Information
Financial summary
Financial highlights for FY2025 (Full Year, January - December 2025)
- Annual Recurring Revenue (ARR): +23% YoY
- Cloud Revenue: +30% YoY
- Recurring Revenue: 83% of total revenue
- Net Retention Rate (NRR): 114%
- Operating Margin Expansion: +5pp YoY
Message from the CEO
“FY2025 was the year Industrial AI crossed the chasm. Enterprises have moved beyond pilots and are scaling AI across the operations that matter most. Customers are choosing IFS because our technology is purpose-built for industrial complexity and delivers outcomes at scale - as customers see ROI, they expand faster and commit more deeply. IFS's growth is double that of peers when compared to market growth figures published by respected industry analysts. We're accelerating as we enter 2026, and the gap is widening.”
Mark Moffat
Chief Executive Officer
IFS
Financial Summary
Financial highlights for Q3 FY2025 YTD
- Annual Recurring Revenue (ARR): +22% YoY
- Cloud Revenue: +31% YoY
- Recurring Revenue: +20% YoY, now representing 82% of total revenue
Message from the CEO
“Our 22% ARR growth and increase in average deal size is driven by our AI investments and reflects a clear market shift: the world's largest industrial enterprises are done experimenting with AI: they're deploying it at scale, and they're choosing IFS to co-innovate with them.
They're choosing us because Industrial AI purpose-built for their operations delivers outcomes they can measure and scale. That's only possible because of our deep industry expertise that has enabled IFS to stand out in asset and service management. That proven value drives expansion. As they see returns, they invest more, and that dynamic is accelerating.”
Mark Moffat
Chief Executive Officer
IFS
Financial summary
Financial highlights for H1 FY2025
- Annual Recurring Revenue (ARR): +30% YoY
- Cloud Revenue: +37% YoY
- Recurring Revenue: +24% YoY (now 82% of total revenue)
Message from the CEO
“Our phenomenal growth proves customers are done with AI theory. They want AI that solves real problems, at scale, and are placing their trust in IFS to lead them through the Industrial AI revolution.
The connection between our performance and AI innovation is unmistakable. As demand intensifies, IFS stands apart, thanks to our domain depth, contextual intelligence, and unwavering focus on industry.”
Mark Moffat
Chief Executive Officer
IFS
Financial summary
Financial highlights for Q1 FY2025
- Annual Recurring Revenue increased by 30% YoY
- Cloud Revenue increased by 39% YoY
- Recurring Revenue share at 82%, increased by 24% YoY
Message from the CEO
“IFS is creating real market momentum thanks to more and more of the world's most respected industrial companies embedding IFS.ai into the very fabric of their operations and business processes. This growth reaffirms our market leadership in mission critical areas of Enterprise Asset Management and Field Service Management.
The development of IFS Nexus Black demonstrates our relentless commitment to innovation for customers. This is a true catalyst for accelerated AI value creation, designed exclusively for the complex needs of the industrial enterprise.”
Mark Moffat
Chief Executive Officer
IFS
2024 Financial Information
Financial summary
Financial highlights for Q4 FY2024:
- Annual Recurring Revenue increased by 32% YoY
- Cloud Revenue increased by 38% YoY
Message from the CEO
“IFS is leading the Industrial AI revolution, evidenced by our sustained financial performance that is fuelled by customer demand for IFS.ai. It is testament to the trust we have built, and I offer my gratitude to our customers and partners for their collaboration, visionary spirit, and confidence in our shared future.” “Our success is a result of strong execution of our industry-focused strategy. No other vendor understands our customers’ industries as well as IFS, which simply means that our customers are realising exceptional value from IFS.ai. We continue to outperform monolithic, legacy enterprise software vendors who have not kept up with the pace of change.”
Mark Moffat
Chief Executive Officer
IFS
Financial summary
Financial highlights for Q3 FY2024:
- Annual Recurring Revenue (ARR) increased by 30% YoY
- Software revenue showed a strong 20% YoY growth
- Customers adopting IFS Cloud in Q3 2024 grew 71% YoY helping to drive 46% YoY growth in Cloud Revenue
Message from the CEO
“Our Q3 results reflect IFS’s commitment to solving critical industry challenges through Industrial AI. IFS.ai is driving the next industrial revolution, and our continued growth is testament to the value we’re delivering to customers and partners alike.
“IFS’s clear vision is to become the undisputed category leader in industrial software. This latest financial performance shows we are on the right track to make this vision a reality.”
Mark Moffat
Chief Executive Officer
IFS
Financial summary
Financial highlights for H1 FY2024
- Annual Recurring Revenue (ARR) up 24% YoY vs. H1 2023
- Cloud Revenue up 20% YoY vs. H1 2023
- Software Revenue now represents 82% of total revenue
Message from the CEO
“I am immensely proud of IFS's dedication to maintaining our trajectory of robust growth and focused market leadership. Our sustained double-digit growth, especially in an unpredictable macroeconomic environment, is the result of our unwavering commitment to delivering exceptional value to our customers, which allows us to continually outperform market benchmarks. Annual Recurring Revenue signals the trajectory of our business moving forward, so to see this increase again by 24% is hugely positive and reflects the hard work of our team and effectiveness of our partners to drive value for customers. The investments we are making today will drive long-term success and solidify IFS's position as a leader in the industry for years to come. Our performance is not a one-time achievement. It is further illustration of our consistent long-term growth, which is a great sign of our solid fundamentals and reliability for investors. With 26 consecutive quarters of delivering to budget, we are proving that our growth is sustainable and built on a strong foundation.”
Mark Moffat
Chief Executive Officer
IFS
Financial summary
Financial highlights for Q1 2024
- Annual Recurring Revenue (ARR) up 26% versus Q1 2023
- Cloud Revenue up 20% YoY versus Q1 2023
- Software Revenue growth up 19% YoY versus Q1 2023
*Note: all figures based in Euros and reported in constant currency.
Message from the CEO
“In my first 100 days as CEO, I have met with over 100 customers around the world, and they consistently tell me that our customer-centric approach is a key differentiator, especially in a world where we see our competitors peddling their own agenda over that of their customers’.
Our Q1 results are the continuation of our relentless focus on what makes us successful: listening to and delivering value to our customers. It’s also what enables us to outperform the market quarter after quarter. Our customer focus is not only ingrained in our culture, but it also extends across our partner ecosystem and the work they deliver alongside us.”
Mark Moffat
Chief Executive Officer
IFS
2023 Financial Information
Financial summary
Full Year, January - December 2023
- FY2023 software revenue was EUR 853m, an increase of 33% versus 2022
- FY2023 recurring revenue was EUR 810m, an increase of 35% versus 2022
- FY2023 net revenue was EUR 1.062m, an increase of 30% versus 2022
- FY2023 annual recurring revenue (ARR) up 26% Year on Year
Message from the CEO
“This time last year we reported five years of strong consecutive double-digit growth. I am hugely proud that the IFS team has continued this trend and also delivered an outstanding 2023. We will shortly reach a very significant landmark for IFS with $1bn ARR representing a strong vote of trust from our customers. Our core IFS value of being customer obsessed is paying off and with IFS.ai we are creating further productivity and automation opportunities for them while adding a critically important dimension to our proposition. We have delivered AI capabilities to our customers for a number of years now, and with IFS.ai we are driving AI across all our products effectively democratizing AI for all of our customers’ users. 2024 will be a continuation of our strategy to deliver industry-specific and market-leading capabilities in FSM, EAM, ERP & ESM, which includes investing in M&A. For our customers, I am proud to say that IFS moves as one, creating value faster and delivering our best to our customers when it matters most, at the Moment of Service.”
Mark Moffat
Chief Executive Officer
IFS
Financial summary
Financial* and Operational Highlights for YTD FY2023
- YTD FY2023 software revenue was EUR 597m, an increase of 37% versus YTD 2022
- YTD FY2023 recurring revenue was EUR 560m, an increase of 38% versus YTD 2022
- YTD FY2023 cloud revenue increased 54% versus YTD 2022
- YTD FY2023 total revenue was EUR 749m, an increase of 33% versus YTD 2022
*Note: all figures based in Euros and reported in constant currency.
Message from the CEO
“The 37 percent increase in software revenue over the last 12 months is a testament to the trust our customers have in IFS and the dedication of our teams. IFS has transformed into a cloud-first technology vendor and continue to create value through organic growth and acquisition to stay at the forefront of innovation. IFS.ai is a continuation of our ambition to innovate and puts IFS in a leading position to democratize AI for all users. Our goal is to anticipate our customers’ needs and deliver when it matters to them, creating value at every step.”
Darren Roos
Chief Executive Officer
IFS
Financial summary
Financial* and Operational Highlights for H1 FY2023
- H1 FY2023 software revenue was EUR 392m, an increase of 44% versus H1 2022
- H1 FY2023 recurring revenue was EUR 373m, an increase of 49% versus H1 2022
- H1 FY2023 cloud revenue increased 55% versus H1 2022
- H1 FY2023 total revenue was EUR 493m, an increase of 38% versus H1 2022
*Note: all figures based in Euros and reported in constant currency.
Message from the CEO
“These results are the culmination of 5 years of hard work in establishing our business as a thought leader and as a partner that has the agility to respond to the needs of its customers. We have consistently been able to adapt faster to market dynamics than much larger competitors. Our 37 percent, 5-year ARR CAGR, is a validation of our customer intimacy and focus. I am proud of the ongoing commitment from our employees and partners and of the trust customers have shown us. The success of our organic and inorganic growth strategies is evidenced by our results and by our rankings as leaders year after year by customers and analysts.”
Darren Roos
Chief Executive Officer
IFS
Financial summary
Year To Date, January - March 2023
- Q1 FY2023 software revenue was EUR 186m, an increase of 44% versus Q1 2022
- Q1 FY2023 recurring revenue was EUR 176m, an increase of 48% versus Q1 2022
- Q1 FY2023 cloud revenue increased 55% versus Q1 2022
- Q1 FY2023 net revenue was EUR 236m, an increase of 38% versus Q1 2022
Message from the CEO
“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.”
Darren Roos
Chief Executive Officer
IFS
2022 Financial Information
Financial summary
Full Year, January - December 2022
- FY2022 software revenue was SEK 6.6bn, an increase of 28 percent versus 2021
- FY2022 recurring revenue was SEK6.1bn, an increase of 44 percent versus 2021
- FY2022 net revenue was SEK8.4bn, an increase of 19 percent versus 2021
Message from the CEO
“For IFS, 2022 was a year characterized by acceleration. We increased our headcount to over 5,500 employees, reached a significant landmark in revenue at €820m and outpaced our competitors by delivering double-digit growth for the 5th consecutive year. Quarter after quarter, our leadership in capabilities and in time to value enabled us to build on our performance. 2023 will be an exciting year as we continue to bring together our employees, our partners and our products and industry expertise across FSM, EAM, and ERP so that our customers can create value faster and deliver their best to their customers when it matters most, at the Moment of Service.”
Darren Roos
Chief Executive Officer
IFS
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
2021 Financial Information
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
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
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
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
2020 Financial Information
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
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
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
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
2019 Financial Information
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
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
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
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