28 January 2021
IFS growth outperforms market in 2020 with 26% increase in software revenue
- 60% increase in Cloud revenue and 43% increase in recurring revenue YoY, despite macroeconomic backdrop
- Recurring revenue share now 80% of software revenue
- Service management license revenues increase by 105% YoY
London, January 28, 2021 – IFS, the global enterprise applications company, today announced its financial results for the full year ended December 31, 2020.
2020 saw widespread market disruption due to the Covid-19 pandemic. This has heightened the need for companies to build resilience into their business and adopt digital business models.
With this backdrop IFS has stood firm in its commitment to deliver measurable benefits to its customers and has doubled down on ensuring a faster time to value. This has been instrumental in delivering sustained growth in revenue and led to a 105-percent increase in Service Management revenue.
Some of the key milestones for IFS in 2020 included:
- The acquisition of Clevest that has increased the depth of IFS’s service management proposition
- The launch of IFS Remote Assistance, that won Business Innovation of the Year at the Technology Excellence Awards
- Growth in IFS’s ecosystem, now with over 8,000 customers and partners having participated in paid-for and free training
- The IFS Community growing to over 5,000 active contributors
- The launch of the IFS Voice of the Customer program that has helped IFS achieve the highest customer satisfaction scores compared to industry peers (according to Gartner Peer Insights).
Throughout the year, IFS has continued to nurture its customer-first culture, strengthen its partner ecosystem and from a sustainability perspective, support the IFS Foundation, which is building a Technology Lab for Welasiya College in Puttalam District of Sri Lanka, a nation that is home to over 1,500 IFS employees.
IFS CEO Darren Roos commented: “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 customers continued to shine. I am hugely proud of that.”
Roos continued, “I am also really proud to see that a significant part of 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."
IFS Chief Financial Officer, Constance Minc, added, “This is the third consecutive year that IFS has delivered double digit growth, and over this period we have grown recurring revenue by 250%. This consistency, together with the improved revenue mix, reveals a strong business that continues to deliver with all the right ingredients to capitalize on our investment cycle. We have real strength in our service proposition, demonstrated by license revenue growing at 105 percent in 2020, as well as an industry focus in sectors like aerospace and defense that will ensure that we continue to deliver value to our customers."
Financial and Operational Highlights for FY 2020, growth YoY:
- 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.
- IFS added close to 200 new logos across its core industries, including Carlsberg, Panasonic, BRITA, LKAB, Savoye, Marshall Aerospace & Defence Group, MRO Logistics, Groupe Beneteau, Lely, De Havilland Aircraft Canada, Mitutoyo and Séché Environnement.
- The partner Ecosystem grew 28 percent versus 2019 and participated in over 30 percent of implementations.
- IFS held its leader status in the Gartner Magic Quadrant for Field Service Management, maintaining this position every year since 2014. Also in 2020 IFS was named a Leader in the IDC MarketScape for SaaS and Cloud- Enabled Large Enterprise ERP Applications, a Gartner Peer Insights Customer Choice Cloud ERP for Product-Centric Enterprises, a Gartner Peer Insights Customer Choice for EAM Applications and a Leader in the IDC MarketScape for SaaS and Cloud-Enabled EAM Applications.
*Note: all figures based in Swedish Krona and reported in constant currency.
Learn more at www.ifs.com/corp/company/financial-results/.
IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods, build and maintain assets, and manage service-focused operations. The industry expertise of our people and solutions, together with a commitment to delivering value to every one of our customers, has made IFS a recognized leader and the most recommended supplier in our sector. Our team of 4,000 employees and growing ecosystem of partners support more than 10,000 customers around the world challenge the status quo and realize their competitive advantage. Learn more about how our enterprise software solutions can help your business today at ifs.com.
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