IFS Had a New Year in the Market with 22% Software Growth
- Overall share of software revenue is 73%, cloud revenue is growing 105% year over year
- Recurring revenue increased 30% year over year
- Service Management performance increased 76% year over year
London, UK, January 25, 2022 Global cloud enterprise software company IFS today announced its financial results for the full year ended December 31, 2021.
The company saw 22% growth in software revenue in 2021 and cloud revenue strengthened with a 105% year-on-year growth despite the negative fluctuations of Covid-19. Our ability to enable our customers to deliver exceptional Moments of Service™ quarterly has been crucial to IFS in achieving sustained growth over the past two years with a 2020/2021 CAGR of 22% in software revenue and 36% in recurring revenue.
Across industries, companies have developed their business models by leveraging digital technologies and channeling innovation into their services, results and/or products to differentiate and gain competitive advantage in uncertain times. In addition to the need for companies to create adaptability in their corporate structures, the need to create agility in their response to changing customer and consumer demands has emerged very clearly.
IFS has remained true to its commitment to accelerate customers’ time to value, and its unwavering industry focus has continued to deliver solutions that not only meet customers’ needs, but also enable them to plan and transform by taking action for the medium and long-term as they move forward in the new normal of business.
Some key events for IFS in 2021 included:
- In February: The company’s rebrand celebrated over 30 years of success brought together under the promise of always delivering great Moments of Service™. The launch itself was appreciated and received many awards.
- In March: Launch of IFS Cloud™, the only technology-rich cloud product with built-in digital innovation, offering a clear path to Evergreen and a lower total cost of ownership (TCO).
- In April: Launch of IFS’s sustainability strategy and commitment to be carbon neutral by 2025, as well as the appointment of Lewis Pugh as IFS’s sustainability ambassador.
- In June: Acquisition of ITSM and ITOM provider Axios Systems to expand the company’s service offering.
- In July: Acquisition of Customerville, already used by IFS in its Voice of the Customer program, ready to help IFS customers deliver great Service Moments™.
- In October: The company announced the winners of the first ever Change Awards for Good Sustainability, attended by more than 35 global companies, and the launch of the latest version of IFS Cloud, including a new sustainability module.
- In November: Release of IFS assyst 11.4, which brings digitalized IT self-service to the entire enterprise through a very simplified enterprise pricing model.
IFS CEO Darren Roos said: “Four consecutive years of double-digit growth is something the entire organization is very proud of, especially given the challenging conditions we have experienced since 2020. Our goal of helping companies deliver their biggest Moments of Service™ in 2021 has also become a reality through our M&A strategy. We have successfully integrated the two companies into IFS and have increased IFS assyst subscription bookings by 236 percent compared to the same period in 2020 since we purchased Axios systems in June.” Roos continued: “The numbers paint a picture of a strong and healthy business and I am particularly pleased that we have not compromised on any other metric to achieve this level of sustainable growth.”
Constance Minc, Chief Financial Officer of IFS, commented: “The 2021 results are crucial because they continue to expand our margins while reinforcing IFS’ impressive performance trajectory with another double-digit software revenue growth. Our commitment to leading the industry in customer satisfaction, growth and profitability has not changed.”
Throughout the year, IFS continued to nurture its customer-first culture by strengthening its service organization and partner ecosystem, as well as maintaining active participation in the work carried out by the IFS Foundation in Sri Lanka, a country that is home to more than 1,500 IFS employees.
Financial and Operational Highlights for Fiscal Year 2021:
- FY2021 software revenue was SEK 4,928 billion, up 22% from 2020
- FY2021 recurring revenue was SEK 4,061 billion, up 30 percent from 2020
- FY2021 cloud revenue increased 105 percent from 2020
- FY2021 net income was SEK 6.767 billion, up 14 percent compared to 2020
*Note: all figures are in Swedish Krona and reported in constant currency.
Consistent with WorkWave establishing itself as an independent business at the end of the second quarter of 2021, the performance reported above does not include WorkWave’s contribution to the IFS Group. Performance, including WorkWave, saw software revenue grow by 32% YTD, with IFS Group reaching $984 million in revenue in 2021.
Source: IFS
https://www.ifs.com/news-and-events/newsroom/2022/01/25/ifs-delivers-another-market-beating-year-with-software-growth-at-22/?sc_camp= Tarih: 25 January 2022
