IFS, an international leader in ERP software for industrial companies and a Vintage Altaroc Odyssey 2022 participant, has just published its financial results for the full year ending December 31, 2023.
The company posted outstanding results, with software revenues up 33% in 2023, recurring revenues up 35% and cloud revenues up 46%.
IFS is consistently recognized internationally as a market leader in the fields of Field Service Management (FSM), Enterprise Asset Management (EAM), Enterprise Resource Planning (ERP) and Enterprise Service Management (ESM).
The year 2023 continued to see unpredictable economic and geopolitical turmoil. Against this backdrop, IFS's strategy (to remain focused on its core sectors and expand its industrial AI capabilities with IFS.ai) produced very strong results in all regions of the world, leading to another year of double-digit growth for the company. The results, which continue to outperform the market, underline the company's agility, scale and global execution capability for its customers.
IFS product innovation in IFS Cloud and the inherent capabilities of IFS.ai are driving high demand from existing customers and have attracted many new customers choosing IFS over industry competitors. Long-standing customers such as Cimcorp, as well as new customers such as Tele 2, Mattr, NOTE AB, Havfram, Van Oord, TÜV NORD, Stannah Lifts, are turning to IFS as their long-term Partner to transform their business models, improve resilience, increase operational efficiency and deliver competitive advantage in their people, assets and services.
IFS CEO Mark Moffat comments: "A year ago, we announced that we had achieved five consecutive years of strong double-digit growth. I'm extremely proud that the IFS team has continued this trend and has also achieved an outstanding year in 2023. We will soon reach a very significant milestone for IFS with $1 billion in ARR, which represents a strong vote of confidence from our customers."
He added: "Our core value of being customer-obsessed is paying off, and with IFS.ai we are creating further productivity and automation opportunities for them while adding an extremely important dimension to our proposition. We've been providing AI capabilities to our customers for several years now, and with IFS.ai, we're deploying AI across all our products, democratizing AI for all our customers' users."
For Mark Moffat, "2024 will be based on the continuation of our strategy to deliver industry-specific and market-leading capabilities in field service management, enterprise asset management, enterprise resource planning and enterprise service management, including investments in mergers and acquisitions. For our customers, I'm proud to say that IFS is moving forward as one, creating value faster and delivering the best to our customers when it matters most, at the Service Moment."
IFS CFO Matthias Heiden also commented on the results: "2023 produced results of which we are very proud. ARR is clearly an important long-term performance metric, and our 26% year-on-year ARR growth was driven by new customer acquisition, significant expansion within the installed base and low churn. All this points to a very healthy mix of revenues and consistent execution across the business."
He concludes: "We saw very healthy double-digit growth in all our regions, with a notable outstanding performance in North America and in the APJ, ME&A region. This, combined with the performance of our ecosystem, is clear evidence that our focus on the product and industries we serve is generating the value our customers need on a global scale."
Financial and operational facts for fiscal 2023, year-on-year growth :
- Software revenues for fiscal 2023 totaled 853 million euros, up 33% on 2022.
- Recurring revenues for fiscal 2023 amounted to 810 million euros, an increase of 35% compared with 2022.
- Net sales for fiscal 2023 totaled 1,062 million euros, up 30% on 2022.
- ARR for fiscal 2023 increased by 26% year-on-year.
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