IFS cloud grows strong with cloud revenue up 104% YoY in Q3 performance

IFS, a worldwide cloud enterprise applications firm, released its year-to-date (YTD) financial results for the third quarter of 2021, which ended on September 30, 2021.

Customer demand for IFS on the Cloud fueled great performance in Q3, with cloud revenue growing 104 percent year over year (YoY). As a result, recurring revenue now accounts for 81 percent of software sales, up 19 percent year over year.

With clients achieving faster time-to-value thanks to IFS Cloud’s better deployment capabilities and more partners using IFS solutions, software revenue now accounts for 72 percent of IFS’s overall revenue, up 17 percent year over year.

Commenting on the results, Darren Roos, CEO of IFS, said: “At heart, IFS is a technology-driven software company and the investments we have – and continue to make – into the IFS Cloud platform and our customer-facing services evidence themselves in these stellar results.”

He added, “The strong growth in software revenue is testament to us attracting new customers, but also in our commitment to our current customers whose ongoing success is of paramount importance to us. I’m proud of the work that our team has done to create market differentiation with our industrial asset and service capabilities, which continues to create positive momentum.”

The improvements against every leading KPI demonstrate IFS’s continued growth and an impressive revenue mix that delivers consistency and predictability. Combining this with IFS’s differentiated proposition for companies managing asset and service needs provides a headwind for a strong end of year.

IFS CFO, Constance Minc, added: “It is hugely impressive for a business of our size to be growing at such a pace, while at the same time building resilience and consistency into our revenue mix. We are continuing to deliver to plan which provides us full confidence in how we will close out the year.”

IFS further bolstered its services in Q3 with the acquisition of Customerville. Customerville is an award-winning feedback platform that elevates feedback and listening across the whole customer journey thanks to its unique design-driven approach. It enables businesses to better understand their consumers, address concerns, and uncover new opportunities to create incredible Moments of Service.

Gartner recognised IFS a Leader in the Magic Quadrant for Field Service Management for the sixth consecutive year, demonstrating IFS’s leadership in Service Management. In Q3, IFS won competitive tenders for its industrial asset and service offering, gaining customers such as one of the world’s largest packaging firms and one of the world’s largest telecoms companies.

Summary of the financial highlights from Q3 2021 YTD:

• Software revenue was SEK 3.4bln, an increase of 17% Year on Year
• Recurring revenue was SEK 2.75bln, an increase of 19% Year on Year and representing 81% of software revenue
• Cloud revenue increased 104% Year on Year, representing more than 29% of software revenue

Due to WorkWave’s separation from the IFS Group at the end of Q2 2021, the performance above does not include WorkWave’s contribution to the IFS Group. WorkWave’s software income has increased by 24 percent year to date. In 2021, the IFS Group expects to generate $1 billion in revenue.