21 October 2019
IFS dominates legacy vendors with 47% increase in license revenue and 23% rise in net revenue
IFS sees six consecutive quarters of growth above 20% and moves to lead the field service market following Astea acquisition
London, October 21, 2019 – IFS, the global enterprise applications company, today announces its financial results for the third quarter and year-to-date (YTD) 2019, ending September 30, 2019.
A remarkable 23% increase in net revenue YTD has IFS yet again outpacing the market by a factor of three. IFS’s latest financial results inspire further confidence in the company’s ability to win market share from the legacy vendors and retain customers by ensuring they consistently derive value from using IFS.
“The success of our business transformation is apparent as Q3 now marks our sixth straight quarter of growth above 20 percent,” said IFS Chief Executive Officer Darren Roos. “Over the last 18 months, we’ve gone from being a fragmented global business to a fast-growing organization operating globally at scale. All the while, we’ve never lost sight of our commitment to providing the best experience for our customers, which remains our guiding principle.”
Commenting on what continues to set IFS apart from industry peers, Roos summarized, “Our topline growth does not come from extracting revenue from our installed base through tactics like compliance audits. On the contrary, we are winning half of our license revenues from new customers. I believe this speaks volumes about our ability to beat the larger legacy vendors with a proposition that offers what the others don’t: choice and a focus on real customer value.”
IFS Chief Financial Officer Constance Minc added, “Every revenue line item saw a double-digit increase in the third quarter, which speaks to a company with a clear vision that is tooled for growth. To ensure we are equipped for the journey ahead—and to help us reach our 2021 revenue target of US$ 1 billion—we recently undertook the most significant IT project in our company’s history. Now, with unprecedented business transparency and agility, we can quickly adjust to fluctuations in any part of the business to better deliver consistent growth and profitability.”
Over the course of recent quarters, IFS has demonstrated that its challenger customers in five focus verticals are attracted by the company’s ability to offer solutions that are easy to use and quick to deploy. Among the new customers announced in Q3 were aerospace titan Rolls-Royce, global cryogenic equipment pioneer Cryostar, international plastic manufacturer Primo, and the SportPesa Racing Point Formula One team.
Financial and Operational Highlights for Q3 and YTD (January – September) 2019:
- Excluding WorkWave, IFS cloud revenue YTD increased 61% versus the same period of 2018
- YTD net revenue was SEK 4,558 million (US$ 485 million), an increase of 23% versus the same period in 2018; Q3 net revenue grew at 21%
- License revenue YTD increased 47% versus the same period 2018; Q3 license revenue increased 45%
- IFS’s strategic growth markets also saw double-digit increases in license revenues, with Aerospace & Defense growing 41% and Service Management up 66% (both YTD)
- EBITDA grew 41% YTD versus the same period 2018
With results like these, IFS has shown its capacity not only to dominate the legacy vendors in more traditional markets like enterprise resource planning (ERP), but also to claim leadership in the fastest growing enterprise software segment with the recent acquisition of Astea, supporting a combined service management customer base of 8,000 globally and growing.
Also taking place in recent weeks, IFS hosted the best-attended customer event in the company’s history, IFS World Conference 2019, which saw a 40% increase in customer attendance versus the previous year.
Note: revenue growth figures based on Swedish Krona and are reported in actual currency.
Learn more at www.ifs.com/corp/company/financial-results/.
IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods, build and maintain assets, and manage service-focused operations. The industry expertise of our people and solutions, together with a commitment to delivering value to every one of our customers, has made IFS a recognized leader and the most recommended supplier in our sector. Our team of 3,700 employees and growing ecosystem of partners support more than 10,000 customers around the world challenge the status quo and realize their competitive advantage. Learn more about how our enterprise software solutions can help your business today at ifs.com.
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