IFS reveals another market-beating year with software growth at 22%

IFS has released its financial results for the fiscal year that ended on December 31, 2021.

Despite Covid-19 difficulties, the firm saw a 22 percent gain in software revenue in 2021, with cloud revenue increasing by 105 percent year over year.

IFS has been able to achieve continuous growth over the previous two years thanks to our ability to enable our customers to deliver outstanding moments of ServiceTM quarter after quarter, with a 2020/2021 CAGR (compound annual growth rate) of 22% in software revenue and 36% in recurring revenue.

In order to differentiate and obtain a competitive advantage in uncertain times, firms across industries have updated their business models by using digital technology and pushing innovation into their services, outcomes, and/or products. It became evident that businesses needed to embed adaptability into their organisational structures as well as agility into their reactions to changing client and consumer needs.

IFS has been true to its promise to reduce time to value for its customers, and its unrelenting industry focus has continued to create solutions that not only suit customers’ demands as they navigate their new business normal, but also enable them to plan and adapt for the medium and long term.

Some key milestones for IFS in 2021 included:

• In February: The company’s rebranding celebrated 30+ years of success brought together under the promise of always delivering great Moments of Service™. The launch itself was acclaimed and secured multiple awards.
• In March: The launch of IFS Cloud™, a tech rich single cloud product with embedded digital innovation that delivers a clear path to Evergreen and a lower TCO. The product also earnt the company several awards.
• In April: The launch of IFS’s sustainability strategy and pledge to become carbon neutral by 2025 as well as the appointment of Lewis Pugh as IFS’s sustainability ambassador. 
• In June: The acquisition of  ITSM and ITOM provider Axios Systems to extend the company’s service offering.
• In July: The acquisition of Customerville, already used by IFS in its Voice of the Customer program, and poised to help IFS customers deliver great Moments of Service™.
• In October: The company announced the winners of its first Change for Good Sustainablity Awards which saw over 35 global companies partake, as well as the launch of IFS Cloud’slatest release including the new sustainability module.
• In November: The launch of IFS assyst 11.4 which brings digitised ITself-service to the entire organisation through a much-simplified enterprise pricing model.

IFS CEO Darren Roos commented: “Four consecutive years of double-digit growth is something the entire organization is hugely proud of,particularly in view of the challenging circumstances we’ve experienced since 2020. He added: “in 2021, our goal to help companies deliver their greatest Moments of Service™ also became a reality through our M&A strategy. We successfully integrated two companies into IFS and, since our acquisiton of Axios systems in June, have increased subscription bookings for IFS assyst by 236 percent compared to the same period in 2020.” Roos continued: “the numbers paint the picture of a strong and healthy business and I am particularly delighted that we are not compromising on any other metrics to achieve this level of sustained growth.”

IFS Chief Financial Officer, Constance Minc, commented: “The 2021 results are very important because they cement IFS’s impressive performance trajectory with another year of double-digit software revenue growth while continuing to expand our margins. Our comittment to lead the industry in customer satisfaction, growth and profitabiltiy is unchanged.”

IFS has continued to cultivate its customer-first culture throughout the year by developing its service organisation and partner ecosystem, as well as maintaining an active role in the work of the IFS Foundation in Sri Lanka, where over 1,500 IFS employees call home.

Financial* and Operational Highlights for FY 2021:

• FY2021 software revenue was SEKbn 4,928, an increase of 22 percent versus 2020
• FY2021 recurring revenue was SEKbn 4,061, an increase of 30 percent versus 2020
• FY2021 cloud revenue increased 105% percent versus 2020
• FY2021 net revenue was SEKbn 6,767, an increase of 14 percent versus 2020

Due to WorkWave’s separation from the IFS Group at the end of Q2 2021, the performance mentioned above does not include WorkWave’s contribution to the IFS Group. WorkWave’s software revenue increased by 32% year over year, bringing the IFS Group’s total revenue to $984 million in 2021.