- ARR uplift driven by a rapid increase in the share of Cloud* (68% of ACV) and Subscription (78% of ACV) YTD.
- Software Revenues YTD representing 76% of Total Revenues
- H1 2022 Software Revenue was SEK 2.8 Bn an increase of 22 percent versus H1 2021
- H1 2022 Cloud Revenue increased 56 percent versus H1 2021
- H1 2022 Net Revenue was SEK 3.7bn, an increase of 14 percent versus H1 2021
- Annual Recurring Revenue is equiv. SEK 4.5bn an increase of 33 percent YoY
IFS, the global cloud enterprise software company, today reported its financial results for H1 as of June 30, 2022, with its share of Recurring Revenue reaching 71 percent of Total Revenues and Software Revenues reaching 76 percent of Total Revenues.
Growth in H1 2022 came from winning net new customers as well as from the IFS install base who continue to upgrade to IFS Cloud. In the first 12 months of IFS Cloud’s general availability, the company reported the same number of new users as it secured over a 25 year period with previous generation software. Not only is IFS’s proposition attractive to businesses wanting a composable solution specific to their needs, but also Cloud environments are being staged in days and implementation times are surpassing industry benchmarks to drive faster time-to-value. In line with this trend, more and more customers are looking to IFS to manage and deliver services throughout their journey with IFS, which has led to a 203 percent year on year increase for IFS’s Success services YTD.
IFS CEO Darren Roos commented: “Our H1 results establish the importance of investing in the things our customers care about – a quality solution that end-users enjoy using, that is implemented quickly and effectively.” Roos continued: “Building a strong and healthy business, whilst delivering growth has been a key theme for the first half of the year as we see macro economic challenges starting to emerge. Our differentiation of empowering our customers to deliver amazing moments of service to their customers is compelling, but in the immediate term, the speed and extent of the value we can return to a customer in how they navigate the headwinds is key.”
IFS Chief Financial Officer, Constance Minc, commented: “Our H1 performance demonstrates we have built further resilience into our business with a significant increase in our ARR driven by an uplift in the share of Cloud ACV at 68% and Subscription ACV at 78% YTD. Our H1 Net Revenue also show an increase of 14 percent YoY, a strong result aligned to our strategy of moving more consulting revenue to our growing partner ecosystem. In addition to our organic growth, we are acquiring businesses with strong foundations as well as a proposition that will add functionality and choice to benefit our customers.”
Following the close of H1 2022, IFS announced the acquisition of Ultimo, a provider of Cloud Enterprise Asset Management (EAM) software. IFS is a leader in the EAM space, thanks to its ability to uniquely offer customers Intelligent Asset + Service capabilities. In H1 2022, Gartner named IFS as the #1 vendor in its Global EAM Market Share report for 2021, in addition winning the Gartner Peer Insight Customers’ Choice Award for EAM software.
Other industry analyst accolades from H1 2022 included being named a Leader in three IDC MarketScape reports (Worldwide Manufacturing Service Life-Cycle Management Platforms 2022, Worldwide Field Service Management Solutions for Utilities 2022 and Worldwide SaaS and Cloud-Enabled Manufacturing ERP Applications 2022), as well as being listed in the Constellation Research Shortlist for Field Service Management and Product-Centric Cloud ERP 2022.
*Note: all figures based in Swedish Krona and reported in constant currency. Cloud mix of ACV includes all of IFS Cloud (including IFS Cloud Remote) and cloud deployment of other products.
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.