IFS delivers 38% YoY revenue growth with sharp rise in demand for its AI capabilities
- Mix of Cloud revenue up 55% YoY and ARR up 55% YoY signal robust forward performance.
- Software revenue up 44% YoY as IFS continues to lead in ERP, EAM, FSM and ESM.
London, UK, July 25, 2023 – IFS, the global cloud enterprise software company, today announced its financial results for the first half of 2023 ending June 30th, with annual recurring revenue up a significant 55 percent year on year, cloud revenue up 55 percent and software revenue up 44 percent representing a 79 percent share of total revenue.
Despite the continued challenges posed by high inflation and monetary policy tightening, companies are further investing in technology. That said, with cloud, VR, RPA and IoT technology capabilities now seen as staple, the AI capability which IFS brings, embedded, natively to our customers is becoming a significant differentiator. This was confirmed in a recent IDC Info Brief* that indicated that capabilities that improve employee and asset productivity, build business resilience, and deliver faster time to value are more likely to secure the CFO’s share of wallet.
IFS’s roadmap remains firmly aligned to these trends with technology that accelerates intelligent insights and automation and optimizes people and assets. With AI well established throughout its automation, prediction, and optimization capabilities the company has seen a sharp increase in demand in H1 by both existing and new customers. As the new generation of AI matures, the company is set to accelerate innovation in this area and continue to deliver these capabilities in every new release.
Adding to the company’s H1 success, in June, IFS acquired Poka, extending its capabilities with connected worker technology to empower factory and field workers to work smarter, safer and drive productivity and efficiency. Poka’s customer base includes global brands such as Nestlé, Tetra Pak, Mars and RioTinto. The acquisition positions IFS as the only vendor with leading ERP, EAM and FSM capabilities now able to digitally connect workers across the end-to-end value chain.
During his 5 years tenure at IFS, CEO Darren Roos’ north star has been to deliver what customers asked for. From exponentially growing the ecosystem to provide choice, to successfully integrating multiple acquisitions to add new capabilities. In that time, the company’s also completed its own transformation and shifted its products and services business model to now being fully subscription-based. The company's H1 results show the dividends of this focus, with consistently high renewal rates across its products and services, combined with a notable increase in new customers.
IFS CEO Darren Roos commented: “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. Roos added: “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,”. He concluded: “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.”
IFS Chief Financial Officer, Matthias Heiden, commented: “The ongoing macro-economic challenges mean companies are thinking carefully about their technology investments and focus on what will help build business resilience. We see this reflected in the number of customers moving to IFS Cloud and in how customers are prioritizing when and where they extend their IFS footprint”. Heiden continued: “With annual recurring revenue up 55 percent year on year, software revenue up 44 percent year on year and our success services up 68 percent year on year, our H1 results are signals of a robust outlook.” Heiden concluded: “The traction we have seen in the US in the first half of the year points to solid market penetration and that the value IFS is delivering is resonating”.
Through its software and success services, IFS is 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™.
* Shaping the future of Manufacturing, see the IDC info brief here.
Financial* and Operational Highlights for H1 FY2023:
- H1 FY2023 software revenue was EUR 392m, an increase of 44 percent versus H1 2022
- H1 FY2023 recurring revenue was EUR 373m, an increase of 49 percent versus H1 2022
- H1 FY2023 cloud revenue increased 55 percent versus H1 2022
- H1 FY2023 total revenue was EUR 493m, an increase of 38 percent versus H1 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.
- IFS has added multiple new logos across all its core industries, with wins such as Havfram, Bang & Bonsomer, Felker Brothers, Behlen Mfg, and Apex Clean Energy.
- IFS was named a Leader in the Nucleus Research Enterprise ERP Technology Value Matrix, 2023
- IFS ranked #1 in a Gartner report for 2022 Global EAM Market Share by Revenue for the second consecutive year.
Learn more at https://www.ifs.com/about/financial-information
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 over 5,500 employees every day live our values of agility, trustworthiness and collaboration in how we support our 6,500+ customers. Learn more about how our enterprise software solutions can help your business today at ifs.com.
IFS Press Contacts:
EUROPE / MEA / APJ: Adam Gillbe
IFS, Director of Corporate & Executive Communications
Phone: +44 7775 114 856
NORTH AMERICA / LATAM: Mairi Morgan
IFS, Director of Corporate & Executive Communications
Phone: +1 520 396 2155