- Surge in demand for cloud pushes Q1 cloud revenue up 67% year on year
- Share of recurring revenue now at 70% of total revenue
- Software revenue growth is up 25% year on year
- Investment from Hg in IFS & WorkWave at a value of $10bn reinforces differentiated positioning and market opportunity
LONDON, April 26, 2022 /PRNewswire/ -- IFS, the global cloud enterprise software company, today announced its financial results for the quarter ending March 31, 2022 with ACV (annual contract value) bookings up 78% year on year and recurring revenues up a significant 45% year on year.
The company continues to report growing demand for its cloud technology resulting in an increase in cloud revenues of 67% year on year despite market challenges and geopolitical disruptions. Throughout 2021 and into 2022 the company has also consistently increased its recurring revenues as a share of software revenues to 92% in Q1.
This outstanding performance enables IFS to boast a very healthy and strong business, which provides performance predictability beyond 2022. This combined with the Hg investment in March, at a valuation of $10bn firmly secures the company position as a leading global cloud enterprise software vendor.
IFS is uniquely positioned in the market thanks to IFS Cloud - a single, composable technology platform that enables customers to differentiate on service. With specific industry solutions and capabilities for asset management and ERP, what makes IFS really stand out is how this combines with the company's leading service management capabilities. Never before have there been such high expectations on how a company serves it customers, which makes IFS Cloud's ability to deliver amazing Moments of Service™ hugely compelling - for many customers, it is their own basis of differentiation.
In Q1 alone, this was recognized by industry analyst IDC who named IFS a Leader in both its MarketScape for Worldwide Manufacturing Service Life Cycle Management Platforms and its MarketScape for Worldwide Field Service Management Solutions for Utilities.
The investments made into IFS Cloud have been well received by customers and continue to drive demand thanks to new functionality developed into the IFS Cloud April 2022 release, as well as the availability of Customer Experience Management, which is now integrated in IFS Cloud following the acquisition of Customerville just nine months ago.
IFS CEO Darren Roos commented: "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." Roos continued: "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." He concluded: "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."
IFS Chief Financial Officer, Constance Minc, commented: "Q1 is another quarter where IFS has delivered great performance. This is particularly significant because we are achieving this across all our metrics which paints the picture of a strong and healthy business focused on growth and profitability." Minc continued: "Q1 shows a continued shift in the quality of the revenue mix with 70% of the total revenue base now being recurring; these strong results highlight the relevance of IFS in its market and demonstrate we have the right growth strategy."
Financial* and Operational Highlights for Q1 FY2022:
- 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
*Note: all figures based in Swedish Krona 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.
Learn more at www.ifs.com/news.
IFS Press Contacts:
MEA& APJ: Adam Gillbe
Phone: +44 7775 114 856
USA: Mairi Drysdale
Phone: +1 520 396 2155
Europe: Marie-Christin Hansen
Phone: +44 755 306 1878
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Financial Results Cision