IFS’ Growth Trajectory Continues with Software Revenue Growth at 20% for H1, Driven by Impressive Rise in Cloud Adoption
IFS, the global cloud enterprise applications company, today announced its financial results for the first half of 2021. After a strong Q1, H1 is evidence that the company is successfully executing its growth strategy and pursuing its transformation into a leading vertical asset and service centric Cloud software vendor.
With more companies recognising the benefits of deploying in the Cloud and turning to IFS to digitally transform and deliver their moments of service, all software revenue line items grew double digit driven by a steep acceleration in cloud revenue (+79% YoY) and recurring revenue (+27% YoY).
Continued improvement in the quality of the revenue mix with software at 74% of revenue AND H1 Cloud revenue up 79% YoY
H1 also saw some key milestones for IFS, including:
- The acquisition of Axios Systems extends IFS’s service management proposition into ITSM and ITOM to create the most compelling Enterprise Service Management proposition on the market. Combined with IFS’s leadership in Field Service Management, this secures IFS’s ambition to cement itself as the market leader in broader the Service Cloud space.
- The launch of IFS Cloud, IFS Cloud is built using the latest technology including the industry’s most modern UX, digital-twins for enhanced performance, low code/no code development, containerization and a composable architecture which are all critical to creating business agility and realizing value.
- The global launch of IFS’s new branding together with the Moment of Service sets out IFS’s clear strategy to align its value proposition to Servitization to enable organisations to deliver their Moment of Service.
IFS CEO, Darren Roos, commented: “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.” Roos continued: “Customers can see the difference in what IFS is doing, 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 customers experience.” Roos concluded: “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.”
IFS Chief Financial Officer, Constance Minc, commented: “I believe our H1 performance is evidence of a strong and successful strategy. We are delivering double digit software revenue growth at 20% and our share of software revenue and recurring revenue continue to increase improving future performance predictability.” Minc added: “The upward trend in our performance is not only present in the last 6 months but over the long term as demonstrated by the double-digit growth in LTM software revenue for the past 3.5 years.”
Other financial highlights include:
- 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 more than 39% of software revenue
- Proportion of license revenues from net new customers is 54% of total
* Note: all figures based in Swedish Krona and reported in constant currency.
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