Results IFS - Image credit Pixabay/GeraltA few weeks after it announced an investment into IFS and sister company Workwave, IFS revealed strong Q1 results. The performance should see it climb above the $10 billion valuation the group received when Hg invested last month.

Key growth figures include:

  • Q1 FY2022 software revenue was SEK 1.3bn (US$ 132 mn), an increase of 25% versus Q1 2021
  • Q1 FY2022 recurring revenue was SEK 1.2bn (US$ 122 mn), an increase of 45% versus Q1 2021
  • Q1 FY2022 cloud revenue increased 67% versus Q1 2021
  • Q1 FY2022 net revenue was SEK 1.7bn (US$ 173 mn), an increase of 15% versus Q1 2021

IFS continues to transform its legacy business into recurring and cloud revenues, contributing 70% of the total revenue and 92% of software revenues. These figures exclude Workwave, which was separated from IFS at the end of Q2 2021, despite HG’s investment covering both.

Strong and Healthy, but is business in the US growing?

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.

“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.”

Can IFS attain US$1 billion in revenue in 2022? There is no mention of bookings or any outlook from the privately held vendor. Nor has it mentioned which geographies the revenues are coming from. Most publicised successes have been in Europe and Asia. Although it recently announced the expansion of its footprint at Southwest Airlines as the leading airline went live on IFS for aviation maintenance for its Boeing fleet. Has IFS Cloud penetrated the US much? The MRO business was mainly based in the Americas before, when it was Maintenix.

Enterprise Times: What does this mean

Sometimes it is what isn’t announced that is important. The net increase in revenue is not as high as some of its cloud-native rivals, which may mean that most of the new cloud revenues are from IFS migrations. This is not bad; IFS enjoys significant loyalty from its existing customers, and they are moving to IFS Cloud. However, those “easy” wins will dry up as cloud revenues contribute a greater share. That point is now approaching. Will IFS continue to drive its cloud revenue up with net new wins?

Darren Roos, CEO, remains bullish, stating: “For the last four years, IFS has consistently outperformed the market, and Q1 is an extension of this trend with ACV bookings up 78% 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.

“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. 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.”

IFS does have a clear focus and, with its approach of delivering “Moments of Service”, it has a strapline that will appeal to many.


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