IFS’ ‘customer obsession’ pays off: Moffat gets closer to $1bn win

image of Mark Moffat, CEO of IFS

IFS has announced its full-year financial results, flaunting a cloud revenue jump of 46 percent as new and existing customers expedite the move to IFS Cloud.

For the year ending December 31, 2023, the company saw its software revenue grow 33 percent year-on-year (YoY), despite the unpredictable economic and geo-political disruption of the past year. Net revenue for the vendor for FY2023 reached €1.062m, a 30 percent jump from the year before.

IFS has stated that its focus on its core industries and extending its industrial AI capabilities with IFS.ai has been the main factor in helping its strong results in all its regions.

“Our core IFS value of being customer obsessed is paying off,” stated Mark Moffat, IFS CEO. “This time last year we reported five years of strong consecutive double-digit growth. I am hugely proud that the IFS team has continued this trend and also delivered an outstanding 2023. We will shortly reach a very significant landmark for IFS with $1bn annual recurring revenue (ARR) representing a strong vote of trust from our customers.”

Moffat also emphasized that IFS.ai is generating further productivity and automation opportunities, adding a critically important dimension to its market proposition. 

“We have delivered AI capabilities to our customers for a number of years now, and with IFS.ai we are driving AI across all our products, effectively democratizing AI for all of our customers’ users,” he added.

IFS CFO, Matthias Heiden, said the company saw a very healthy double-digit growth in all regions, with a notable outstanding performance in the North American and APJ, ME&A regions. 

“This combined with the performance of our ecosystem is clear evidence that our focus on product and the industries we serve are delivering the value our customers need globally,” Heiden commented.

IFS’ demand from existing customers is said to stem from product innovation in IFS Cloud and the inherent IFS.ai capabilities. Meanwhile, the company has also added 243 new logos globally and across its core industries, increasing ARR for the last 12 months by 26 percent YoY. 

New customers such as Tele 2, Mattr, NOTE AB, Havfram, Van Oord, TÜV NORD, Stannah Lifts, Enercare, My Dentist, and City of Tallahassee have turned to IFS to transform their business models.

The results come after a series of role changes for the firm, as IFS has most recently shared the appointment of Sophie Graham as chief sustainability officer, a reflection of its continued commitment to sustainability, following the promotion of Mark Moffat to CEO of IFS from his former chief customer officer role. 

IFS additionally had a busy month in September, with the acquisition of California-based Industrial AI software company Falkonry AI and its partnership with Scandinavian distributor of building materials and related services, Moelven Industrier.

For 2024, IFS’ strategy remains largely the same, with the onus placed on delivering its industry-specific solutions in FSM, EAM, ERP and ESM, as well as keeping an eye on opportunities for further M&A investment.