IFS's Q1 hits significant markers with recurring revenue over 80% of software revenue, cloud revenue growth at 102% and representing over 50% of recurring revenue

LONDON, April 27, 2021 /PRNewswire/ -- IFS, the global enterprise applications company, today announced its financial results for the first quarter-January to March of 2021. After a strong 2020, Q1 results point to a continuation of the growth trajectory across the entire business and specifically in recurring revenue, cloud revenue and service management revenue. 

 IFS's position as the global vendor of choice for companies transforming their business models away from selling products towards selling services and outcomes is validated by its Q1 performance and the triple-digit growth of its service management business at 103 percent.

Q1 also saw some key milestones for IFS, which included:

The launch of IFS Cloud, which was the most significant in the Company's history. It brings IFS's entire depth and breadth of functionality into a single platform. Deployable in a modular way, on-premises or in the cloud, it not only supports a composable enterprise but with digital innovation natively part of the product, it also accelerates digital transformation.

The acquisition of Axios Systems extends the Company's enterprise service management proposition with IT Service Management (ITSM) and IT Operations Management (ITOM) functionality and creates new opportunities for IFS and Axios customers alike. The combination of IFS and Axios Systems is instrumental in extending IFS's ambition to cement itself as the market leader in the service space.

The global launch of IFS's Moment of Service positioning and new branding took place in February. This set out IFS's clear strategy to align its value proposition to servitization and become the default vendor for organizations who want to be their best when it matters to their customers—at the Moment of Service.

IFS CEO Darren Roos commented, "The launch of IFS Cloud in Q1 was the most important launch in company history. It was a milestone that delivers on our promise of helping customers create truly amazing moments of service. The impressive performance and growth of our cloud and service management business is evidence that customers value that we understand their needs and are delivering products that support their journey." He added, "In addition to our organic growth, we are strengthening our proposition with the addition of Axios Systems to ensure we remain the de facto leader for companies that want to differentiate in how they deliver and profit from service."

IFS Chief Financial Officer, Constance Minc, added, "I believe Q1 is representative of the recognition IFS is getting in the cloud software market. By continuing to deliver double-digit recurring revenue growth at 24 percent we are showing a consistent upward trend in our performance and in the quality of our revenue mix. With our cloud software revenue now representing 40 percent of our total software revenues and 50 percent of recurring revenue, IFS is hitting some very significant milestones."

 Other financial highlights:     

• Q1 software revenue was SEK 1.2 billion, an increase of 13 percent Year on Year 
• Q1 recurring revenue was SEK 1.0 billion, an increase of 24 percent Year on Year and representing more than 80 percent of software revenue
• Q1 cloud revenue increased 102 percent Year on Year representing more than 40 percent of software revenue (cloud revenue defined as all revenue streams associated with a cloud deployment deal)
• Proportion of license revenues from new customers up to 57 percent. 

* Note: all figures based in Swedish Krona and reported in constant currency. Service management revenue growth normalized for one large deal in Q1 2020.

Learn more at www.ifs.com/corp/company/financial-results/.

CONTACT:

Natalie Sutton, IFS Head of External Communications. Phone: +44 (0)1784 278222, [email protected]

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SOURCE IFS