IFS, the global cloud enterprise software company, 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 45%.
Despite market challenges and geopolitical disruptions, the company continues to report growing demand for its cloud technology, resulting in a 67% increase in cloud revenues year on year. Throughout 2021 and into 2022, the company has steadily increased its recurring revenues as a percentage of software revenues, reaching 92% in Q1.
“For the last four years IFS has consistently outperformed the market and Q1 is an extension of this trend with ACV bookings up 78 percent 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,” said Darren Roos, CEO, IFS.
“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,” added Roos.
This exceptional performance enables IFS to boast a very healthy and strong business, with performance predictability beyond 2022. This, along with the Hg investment in March at a $10 billion valuation, solidifies the company’s position as a leading global cloud enterprise software vendor.
IFS is uniquely positioned in the market due to IFS Cloud – a single, scalable technology platform that enables customers to differentiate themselves on service. With industry-specific solutions and capabilities for asset management and ERP, what really distinguishes IFS 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 its customers, making IFS Cloud’s ability to deliver amazing moments of service extremely compelling – in fact, for many customers, it is their own point of differentiation.
IDC named IFS a Leader in both its MarketScape for WorkWide Manufacturing Service Life Cycle Management Platforms and its MarketScape for Worldwide Field Service Management Solutions for Utilities in Q1 alone.
Customers have reacted positively to the investments made in IFS Cloud, which continue to drive demand thanks to new functionality developed for 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 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.”
