London, January 25, 2023 – IFS, the global cloud enterprise applications company, today announced its financial results for the full year ending December 31, 2022. The company posted exceptional results with software revenue growth at 28 percent year-on-year and cloud revenue growth up 80 percent as existing customers and new customers switch to IFS Cloud.
The 2022 results mark the fifth consecutive year IFS has secured strong double-digit revenue growth, demonstrating unparalleled robustness in its strategy and ability to execute globally. Throughout 2022, cloud and digital technology remained high on companies’ agendas and IFS customers sought to build operational agility and leverage innovation to build competitive advantage.
Since its initial release, IFS Cloud continues to deliver value with an Evergreen model. The twice-yearly release cycle has become an integral part of business as usual with customers adopting regular updates and negating the need for costly upgrades. New customers are experiencing considerably faster time to value with IFS, at an average of 9.5 months from contract to value.
Some of the key milestones for IFS in 2022 included:
- IFS launched its Partner Success program in Q1 to further underpin and accelerate its partner strategy.
- In March 2022, HG Capital became a significant minority investor in a transaction valuing IFS & WorkWave at $10bn
- In April 2022, IFS launched Arcwide, a joint venture with BearingPoint designed to accelerate the pace of IFS Cloud deployments.
- IFS retained its leadership positions across core product categories with continued recognition by analyst’s firms*.
- In July 2022, IFS acquired EAM Software solutions provider Ultimo Software Solutions.
- IFS secured awards** for individual leadership, as well as its products, its innovations and customer experience.
- In September, IFS signed an agreement to sponsor the London Cable Cars, as part of a brand activation campaign.
- IFS Unleashed, the rebranded global IFS community event for prospects, customers and partners, took place in October with over 2,500 in-person attendees and thousands more online.
IFS CEO Darren Roos commented: “For IFS, 2022 was a year characterized by acceleration. We increased our headcount to over 5,900 employees, reached a significant landmark in revenue at $1bn and outpaced our competitors by delivering double-digit growth for the 5th consecutive year.” Roos added: “Quarter after quarter, our leadership in capabilities and in time to value enabled us to build on our performance.” Roos concluded: “2023 will be an exciting year as we continue to bring together our employees, our partners and our products and industry expertise across FSM, EAM, and ERP so that our customers can create value faster and deliver their best to their customers when it matters most, at the Moment of Service.”
IFS Chief Financial Officer, Constance Minc, added, “In2022, IFS has shown resilience and consistency; despite the macroeconomic headwinds we have accelerated our growth across our key metrics for the group. Growing our cloud revenue at 80 percent year-on-year and our annual recurring revenue at 57 percent year-on-year in challenging market conditions demonstrates a level of robustness and reliability that’s a testament to our relevance and customer focus”.
Throughout the year, IFS has continued to nurture its customer-first culture by strengthening its service organization and its partner ecosystem, as well as maintaining an active involvement in the work delivered by the IFS Foundation in Sri Lanka, a nation that is home to over 2,200 IFS employees.
Financial and Operational Highlights* for FY 2022, growth YoY:
- FY2022 software revenue was SEK 6.6bn, an increase of 28 percent versus 2021
- FY2022 recurring revenue was SEK6.1bn, an increase of 44 percent versus 2021
- FY2022 net revenue was SEK8.4bn, an increase of 19 percent versus 2021
- IFS added over 250 new logos across its core industries, including Väderstad, Konica Minolta, Xcel Energy, and Bosch Thermotechnik.
- The IFS partner Ecosystem grew 65 percent year-on-year and participated in over 50 percent of implementations, with over two-thirds of its largest partners signing up to the Partner Success program.
- *IFS extended its leader status in the Gartner Magic Quadrant for Field Service Management, maintaining this position every year since 2014. Also in 2022, IFS was named a Leader in the IDC MarketScape for SaaS and Cloud-Enabled Manufacturing ERP Applications, a Leader in the IDC MarketScape for Manufacturing Field Service Management Applications, a Leader in the IDC MarketScape for Manufacturing Service Life-Cycle Management, a Leader in the IDC MarketScape for Field Service Management Solutions for Utilities, a Gartner Peer Insights Customer Choice for EAM Applications, and listed #1 in Gartner Global EAM Market Share 2021 By Revenue
- ** IFS collected a significant number of awards: ERP Software of the Year Nov 2022, Asset Management Product of the Year Nov 2022, The Software Report Darren Roos No1 Top SaaS CEO Oct 2022, The Software Report Marne Martin No2 Top Women in SaaS Nov 2022, Artificial Intelligence Award – Reactive machines: automated planning and scheduling Mar 2022, Cloud Award Sep 2022, Sustainability Award Sep 2022, Excellence in Customer Service Award Apr 2022, Fortress Cyber Security Award Jun 2022, Indirect IT Channel Solutions Mar 2022
*Financial and Operational reporting will move to Euros from March 2023.
Learn more at www.ifs.com/corp/company/financial-results/.