IFS delivers strong Q3 2023 results thanks to increased demand for AI

IFS, the global cloud enterprise software company, today announced its financial results for the year to date (YTD) ending September 30th, 2023. The company reported substantial YoY increases in annual recurring revenue (ARR) of 49 percent, cloud revenue of 54 percent, and software revenue of 37 percent, which represents an impressive 80 percent share of total revenue.

The company’s commitment to delivering rapid time-to-value has resulted in significant wins and upgrades from global customers including: Tele2, Culligan, Van Oord, Roxtec International and De Havilland. The advanced industry capabilities, user experience, and value offered by IFS Cloud continue to attract new customers and motivate existing ones to extend their usage and leverage IFS technology to create outstanding Moments of Service for their customers.

This is compounded by IFS’s sustained investment in technology that is seeing capabilities for ESG and Artificial Intelligence (AI) drive demand. The macro interest and appetite for AI bodes well for IFS with its AI architecture, IFS.ai, that extends the value of AI across all its capabilities and throughout a customers’ businesses.

Reflecting on the impact IFS’s technology has for its customers, Forrester Research’s recently announced study that evaluates the benefits of deploying IFS Cloud found that the average customer achieved over $36m USD in savings over three years, of which over $13m were sustainability benefits.

IFS CEO Darren Roos stated: “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.” He added: “IFS has transformed into a cloud-first technology vendor that continues to create value through organic growth and acquisition to stay at the forefront of innovation.” Roos concluded: “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”.

IFS Chief Financial Officer, Matthias Heiden, commented: “It is evident that the macro-economic challenges continue to impact many industries”. Heiden continued: “that said, we are pleased to be engaged with many forward-thinking customers who understand the need and opportunity to leverage technology to drive efficiency in their business. IFS is well positioned to help them achieve competitive differentiation. This has translated into significant growth with total revenue up 33 percent year-to-date vs 2022 and ARR up 49 percent YoY.” Heiden concluded: “Reviewing our performance so far in 2023, I am not only proud that we are outperforming the market but that we are achieving this robust mix without compromising on any other metrics; we are building on the strong performance of previous years delivering the value customers need”.

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.” 

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.

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.

Additional highlights

• IFS was named a Leader in the IDC MarketScape: Worldwide Service Life-Cycle Management Platforms 2023–2024 Vendor Assessment
• IFS was named a Visionary in the Gartner Magic Quadrant for Cloud ERP for Product-Centric Enterprises, 2023

Learn more at  www.ifs.com/news