IFS issued another strong set of results for its third quarter, 2022 ending September 30th. IFS continues to help existing, and new customers, deliver Moments of Service as it accelerated ARR from 33% to 38% YoY. Customers celebrated last quarter included Nordic Paper, Coromatic, Hitachi Zosen and Kodiak Gas Services, all of whom selected or moved to the IFS cloud. The key figures from the quarter included:
- Annual Recurring Revenue SEK 5.0bn (approx USD 457mn), an increase of 38% YoY
- Q3 YTD 2022 Software Revenue SEK 4.5bn (approx USD 411mn), an increase of 26% YoY
- Q3 YTD 2022 Recurring Revenue SEK 4.2bn (approx USD 384mn), an increase of 46% YoY
- Q3 YTD 2022 Cloud Revenue increased by 104% YoY
These figures do not include Workwave, which tends to announce results separately but has not announced its Q3 results as yet. Its Q2 results outperformed the IFS Q2 results, though. The figures include contributions from the newly acquired Ultimo, which has extended its strength in the EAM market. Net new logos have boosted this growth. They contributed 44% towards the ACV (Annual Contract Value), and the IFS Momentum upgrade program has helped accelerate existing IFS customers’ adoption of IFS Cloud.
Constance Minc, CFO of IFS, commented, “Our performance over the first nine months of this year has been exceptional. ARR has increased by 38% compared to Q3 2021. This demonstrates the health and resilience of our business. Over the last few years, we have transformed our revenue model, which is not a simple undertaking but underpinned by IFS Cloud’s leading capabilities, our teams have stayed focused on delivering quarter after quarter, and these latest results are evidence of this.”
Heading in the right direction
Another solid quarter from IFS included recognition from analyst firms such as Gartner, who placed it number one in its “Global EAM Market Share 2021 by Revenue” and a leader in the IDC MarketScape for worldwide SaaS and Cloud-enabled manufacturing ERP.
Darren Roos, CEO of IFS, commented, “Our compelling proposition and genuine commitment to our customers continues to serve us well in driving growth for IFS. We are uniquely positioned in the industry with the best asset and service management capabilities. We are seeing more and more companies recognize that the ability to orchestrate their assets, people and customers on a single, composable platform across EAM, FSM & ERP helps them to deliver amazing moments of service to their customers. This is a real differentiator. I am grateful to our extended team of partners and employees for staying true to our pledge to add value and continue to innovate and deliver our best to all our customers when it matters most to them.”
With its composable architecture, the company continues to extend IFS Cloud embedding as AI, ML, IoT, automation, and advanced analytics across ERP, EAM, and FSM. At its recent Unleashed conference, IFS also revealed details of its latest IFS release with many new features.
Looking forward, the company hopes that Q4 and Q1 2023 will start to see growth accelerate in the US under the new leadership of David Spencer as President for IFS North America.
Enterprise Times: What does this mean
Another solid quarter from IFS that sees a slow acceleration of growth. This is impressive, not least because as it gets larger, just maintaining the existing growth trajectory gets harder. IFS provided no breakdown of how it does across regions or even in its different industry sectors. It will be interesting to see whether US customer stories start to emerge in growing numbers; Kodiak Gas Services was one of the few in recent months.
