IFS’s financial results boast recurring revenues rising by 41 percent year-on-year (YoY), now representing 82% of the group’s overall software revenue
IFS, the global enterprise applications company, on 22 October, announced its financial results for the third quarter (Q3) year-to-date (YTD) of 2020, encompassing January – September. The financial highlights reveal a strong business that continues its trajectory of hyper growth in areas like cloud and service management software.
The company’s commitment to advancing its service management technology is projected to deliver north of 100% year-on-year growth in service software revenue by year-end. IFS’s evolution into becoming the global service solutions vendor of choice is evidenced by a number of recent customer wins, including agricultural group Lely as well as the launch of new software capabilities in its customer engagement offering.
“The number of companies realizing how important the moment of service is to their customers continues to grow at pace. Organizations are transforming their businesses around this, and IFS is uniquely positioned with to capitalize on this groundswell of opportunity,” IFS Chief Executive Officer, Darren Roos said. “Whether they manufacture medical equipment, operate large energy utilities or manage complex industrial assets, organizations want solutions that will get them from production through to the point of delivery. They need end-to-end systems with the capabilities to support them as they pivot to outcome and usage-based models. IFS is the only vendor that can provide an integrated solution set across their entire operation.”
IFS Chief Financial Officer, Constance Minc added, “With our recurring revenues expanding by over 40 percent in the period and cloud revenues increasing by nearly 60 percent, we are seeing tremendous progress toward building more predictable, sustainable revenue streams against the backdrop of a volatile economic climate. This image is further enhanced by an impressive rise of 23 percent in global software revenue – as well as remarkable growth in service management and in the Americas region.”
Financial and Operational Highlights for Q3 YTD 2020:
- Net revenue was 5 111 million SEK ($544 million), an increase of 12 percent versus Q3 YTD 2019
- Service management license revenue grew 86% versus Q3 YTD 2019
- Recurring revenue increased 41 percent versus Q3 YTD 2019
- Cloud revenue increased 59 percent versus Q3 YTD 2019
- CASH EBITDA improved 63 percent versus Q3 YTD 2019
In the third quarter, IFS’s industry focus continued to pay dividends, with the aerospace and defense (A&D) business unit not only welcoming aircraft manufacturer De Havilland Canada to the family, but also closing the largest-ever deal in the company’s history with one of the sector’s leading brands. In the construction and engineering space, IFS announced the agreement with French engineering company, Ginger Group for the group-wide deployment of IFS enterprise applications supporting 2 000 staff in some 28 subsidiaries.
Note: revenue growth figures based on Swedish Krona YTD January to September 2020 versus YTD January to September 2019 and are reported in actual currency.