omniture

IFS delivers another market beating year with software growth at 22%

- Overall share of software revenue at 73% with cloud revenue growing at 105% year on year
- Recurring revenue up 30% year on year
- Service Management performance up 76% year on year
IFS
2022-01-25 17:16 1828

LONDON, Jan. 25, 2022 /PRNewswire/ -- IFS, the global cloud enterprise software company, today announced its financial results for the full year ending December 31, 2021.

The company saw a 22% growth in software revenue in 2021, with cloud revenue going strong at a 105% increase year on year despite Covid-19 headwinds. Our ability to enable our customers to deliver outstanding Moments of Service™ quarter after quarter has been essential for IFS in achieving sustained growth over the last two years, with a 2020/2021 CAGR (compound annual growth rate) of 22% in software revenue and 36% in recurring revenue.

Across industries, companies evolved their business models by leveraging digital technologies and driving innovation into their services, outcomes and/or products in a bid to differentiate and gain competitive advantage in uncertain times. The need for companies to build adaptability in their organizational set up, as well as agility in their responses to shifting customer and consumer demands became crystal clear.

IFS stayed true to its commitment to accelerate its customers' time to value, and its unwavering industry focus has continued to deliver solutions that not only meet customers' needs as they navigate their new business normal, but also enable them to proactively plan and transform for the medium and longer term.

Some key milestones for IFS in 2021 included:

  • In February: The company's rebranding celebrated 30+ years of success brought together under the promise of always delivering great Moments of Service™. The launch itself was acclaimed and secured multiple awards**.
  • In March: The launch of IFS Cloud™, a tech rich single cloud product with embedded digital innovation that delivers a clear path to Evergreen and a lower TCO. The product also earnt the company several awards***.
  • In April: The launch of IFS's sustainability strategy and pledge to become carbon neutral by 2025 as well as the appointment of Lewis Pugh as IFS's sustainability ambassador.  
  • In June: The acquisition of  ITSM and ITOM provider Axios Systems to extend the company's service offering.
  • In July: The acquisition of Customerville, already used by IFS in its Voice of the Customer program, and poised to help IFS customers deliver great Moments of Service™.
  • In October: The company announced the winners of its first Change for Good Sustainablity Awards which saw over 35 global companies partake, as well as the launch of IFS Cloud's latest release including the new sustainability module.
  • In November: The launch of IFS assyst 11.4 which brings digitised IT self-service to the entire organisation through a much-simplified enterprise pricing model.

IFS CEO Darren Roos commented: "Four consecutive years of double-digit growth is something the entire organization is hugely proud of, particularly in view of the challenging circumstances we've experienced since 2020. He added: "in 2021, our goal to help companies deliver their greatest Moments of Service™ also became a reality through our M&A strategy. We successfully integrated two companies into IFS and, since our acquisiton of Axios systems in June, have increased subscription bookings for IFS assyst by 236 percent compared to the same period in 2020." Roos continued: "the numbers paint the picture of a strong and healthy business and I am particularly delighted that we are not compromising on any other metrics to achieve this level of sustained growth."  

IFS Chief Financial Officer, Constance Minc, commented: "The 2021 results are very important because they cement IFS's impressive performance trajectory with another year of double-digit software revenue growth while continuing to expand our margins. Our comittment to lead the industry in customer satisfaction, growth and profitabiltiy is unchanged."

Throughout the year, IFS has continued to nurture its customer-first culture by strengthening its service organization and its partner ecosystem as well as maintaining an active involvement in the work delivered by the IFS Foundation in Sri Lanka, a nation that is home to over 1,500 IFS employees.

Financial* and Operational Highlights for FY 2021:

  • FY2021 software revenue was SEK bn 4,928, an increase of 22 percent versus 2020
  • FY2021 recurring revenue was SEK bn 4,061, an increase of 30 percent versus 2020
  • FY2021 cloud revenue increased 105% percent versus 2020
  • FY2021 net revenue was SEK bn 6,767, an increase of 14 percent versus 2020

*Note: all figures based in Swedish Krona and reported in constant currency.

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 Group. Performance including WorkWave saw software revenue grow at 32% YTD and the IFS Group reach $984M USD revenue in 2021.
 
Additional highlights:

Learn more at www.ifs.com/corp/company/financial-results.
   
** IFS branding launch - 5 Hermes Creative Awards - 4 platinum and 1 gold.
*** IFS Cloud - Tech Ascension, Cloud Innovation Award & The SAMMY Technology Award.

IFS Press Contacts information:

MEA& APJ: Adam Gillbe
Corporate Communications
Email: press@ifs.com
Phone: +44 7775 114 856

USA: Mairi Drysdale
Corporate Communications
Email: press@ifs.com
Phone: +1 520 396 2155

Europe: Marie-Christin Hansen
Corporate Communications
Email: press@ifs.com
Phone: +44 755 306 1878

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Source: IFS
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