IFS Hits Significant Q1 Markers with Recurring Revenue Over 80% of Software Revenue and More

  • April 27, 2021
  • IFS North America, Inc.
  • News
IFS Hits Significant Q1 Markers with Recurring Revenue Over 80% of Software Revenue and More
IFS Hits Significant Q1 Markers with Recurring Revenue Over 80% of Software Revenue and More

April 27, 2021 - IFS, the global enterprise applications company, today announced its financial results for the first quarter—January to March of 2021. After a strong 2020, Q1 results point to a continuation of the growth trajectory across the entire business and specifically in recurring revenue, cloud revenue and service management revenue.

The IFS position as the global vendor of choice for companies transforming their business models away from selling products towards selling services and outcomes is validated by its Q1 performance and the triple-digit growth of its service management business at 103%.

Q1 also saw some key milestones for IFS, which included:

  • The launch of IFS Cloud, which was the most significant in the Company’s history. It brings the entire depth and breadth of IFS functionality into a single platform. Deployable in a modular way, on-premises or in the cloud, it not only supports a composable enterprise but with digital innovation natively part of the product, it also accelerates digital transformation. 
  • The acquisition of Axios Systems extends the Company’s enterprise service management proposition with IT Service Management (ITSM) and IT Operations Management (ITOM) functionality and creates new opportunities for IFS and Axios customers alike. The combination of IFS and Axios Systems is instrumental in extending the IFS ambition to cement itself as the market leader in the service space.
  • The global launch of the IFS Moment of Service positioning and new branding took place in February. This set out clear IFS strategy to align its value proposition to servitization and become the default vendor for organizations who want to be their best when it matters to their customers—at the Moment of Service. 

IFS CEO Darren Roos commented, “The launch of IFS Cloud in Q1 was the most important launch in company history. It was a milestone that delivers on our promise of helping customers create truly amazing moments of service. The impressive performance and growth of our cloud and service management business is evidence that customers value that we understand their needs and are delivering products that support their journey.” He added, “In addition to our organic growth, we are strengthening our proposition with the addition of Axios Systems to ensure we remain the de facto leader for companies that want to differentiate in how they deliver and profit from service.”

IFS Chief Financial Officer Constance Minc added, “I believe Q1 is representative of the recognition IFS is getting in the cloud software market. By continuing to deliver double-digit recurring revenue growth at 24% we are showing a consistent upward trend in our performance and in the quality of our revenue mix. With our cloud software revenue now representing 40% of our total software revenues and 50% of recurring revenue, IFS is hitting some very significant milestones.”

Other financial highlights:

  • Q1 software revenue was SEK 1.2 billion, an increase of 13% Year on Year

  • Q1 recurring revenue was SEK 1.0 billion, an increase of 24% Year on Year and representing more than 80% of software revenue

  • Q1 cloud revenue increased 102% Year on Year representing more than 40% of software revenue (cloud revenue defined as all revenue streams associated with a cloud deployment deal)

  • Proportion of license revenues from new customers up to 57%.

* Note: all figures based in Swedish Krona and reported in constant currency. Service management revenue growth normalized for one large deal in Q1 2020.

About IFS

IFS develops and delivers enterprise software for companies around the world who manufacture and distribute goods, build and maintain assets, and manage service-focused operations. Within our single platform, our industry specific products are innately connected to a single data model and use embedded digital innovation so that our customers can be their best when it really matters to their customers—at the Moment of Service. The industry expertise of our people and of our growing ecosystem, together with a commitment to deliver value at every single step, has made IFS a recognized leader and the most recommended supplier in our sector. Our team of 4,000 employees every day live our values of agility, trustworthiness and collaboration in how we support our 10,000+ customers.

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