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
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
IFS, Box 1545, SE-581 15 Linköping, Sweden – Phone: +46 13 460 40 00 – Fax: +46 13 460 40 01
Industrial and Financial Systems, IFS AB is a private limited company registered in Linköping, Sweden.
Corporate identity number: 556122-0996
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
IFS develops and delivers cloud enterprise software for companies around the world
who manufacture and distribute goods, build and maintain assets, and manage
service-focused operations. Within our single platform, our industry specific products
are innately connected to a single data model and use embedded digital innovation
so that our customers can be their best when it really matters to their customers—at
the Moment of Service™. The industry expertise of our people and of our growing
ecosystem, together with a commitment to deliver value at every single step, has
made IFS a recognized leader and the most recommended supplier in our sector.
Our team of 5,000 employees every day live our values of agility, trustworthiness and
collaboration in how we support our 10,000+ customers. Learn more about how our
enterprise software solutions can help your business today at ifs.com.