Demand for IFS Cloud drives strong Q3 performance for IFS with cloud revenue up 104% YoY

Industrial asset & service proposition drives momentum with major customer wins

IFS, the global cloud enterprise applications company, today announced its Q3 2021 year-to-date (YTD) financial results, ending September 30, 2021.

Driving strong performance in Q3 was the increase in customer demand for IFS in the Cloud, with cloud revenue up 104% year-on-year (YoY). In line with this, recurring revenue now constitutes 81% of software revenue, representing a 19% increase YoY.

With customers achieving faster time-to-value because of the improved deployment capabilities of IFS Cloud, as well as more partners implementing IFS solutions, the contribution of software revenue now represents 72% of IFS’s total revenue, up 17% YoY.

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

In Q3, IFS also added depth to its offering with the acquisition of Customerville. Customerville is an award-winning feedback platform that elevates feedback and listening across the entire customer journey thanks to its unique design-driven approach. It enables companies to get a better understanding of their customers, address issues and unearth new opportunities so that they can ultimately deliver amazing Moments of Service™.

Testament to IFS’s leadership in Service Management is recognition from Gartner who named IFS a Leader, for the sixth consecutive time, in the Magic Quadrant for Field Service Management. In Q3, IFS also won competitive tenders with its industrial asset and service proposition, adding one of the world’s largest packaging and one of the world’s largest telecoms companies as customers.

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. 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.”

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.”

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

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. Performance including WorkWave saw software revenue grow at 24% YTD. The IFS Group is on track to achieve $1bln USD revenue in 2021.

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