The increasing demand for industrial AI software, especially in the manufacturing, energy and utilities, and servicing sectors, boosted the revenue for leading enterprise cloud and industrial AI software provider IFS in the third quarter.
The company’s annual recurring revenue (ARR) increased by 30% during Q3 compared to a year ago, driven by a 71% increase in its IFS Cloud adoptions and a 46% growth in cloud revenue.
“The 30% growth in ARR demonstrates our success in driving predictable, profitable growth. We continue to lead with customer-focused solutions, strongly supported by our innovative global partner network,” said Matthias Heiden, Chief Financial Officer at IFS.
In Q3, IFS added 90 new organizations to its customer roster. These include Danish Telecom company TDC NET, which strengthened its relationship with the firm after opting for IFS Cloud in October. TDC NET will utilize IFS Cloud’s Field Service Management (FSM) to streamline its workforce management (WFM) processes and consolidate its WFM systems on a single platform.
Other companies that became IFS customers in the third quarter include Ahrend, Avia Prime, Comcast, DCC Plc, Drayton Aerospace, General Dynamics Ordnance and Tactical Systems-Canada, HomeServe, Ista SE, Quanta Services Australia, Rolls Royce Power Systems, Sureserve, Stertil Group, SNCF, and Gares & Connexions.
During the quarter under review, the company further strengthened its ERP and AI offering with the acquisition of Canada-based Copperleaf Technologies and EmpowerMX. Revenue from AI-powered industry-specific solutions through Ultimo, Poka, and its most recent acquisitions also increased in the third quarter.
“Our Q3 results reflect IFS’s commitment to solving critical industry challenges through Industrial AI,” said Mark Moffat, Chief Executive Officer at IFS. He added, “IFS.ai is driving the next industrial revolution, and our continued growth is a testament to the value we’re delivering to customers and partners alike.”
The company unveiled IFS Cloud 24R2 during its recent IFS Unleashed event. The new solution includes IFS.ai-powered features and over 60 AI use cases. The firm has also created a new sustainability module with PwC called IFS Cloud Sustainability Management Module to help customers resolve their ESG challenges.
