IFS has delivered an exceptional Q1 performance, with ACV bookings up 78 percent year on year and recurring revenues up a significant 45 percent year on year.
The company continues to report growing demand for its cloud technology, resulting in an increase in cloud revenues of 67 percent year on year despite market challenges and geopolitical disruptions. Share of recurring revenue is now at 70 percent of total revenue, while software revenue growth is up by 25 percent year on year.
The company’s strong performance helps provide performance predictability beyond 2022, which, combined with the Hg investment in March at a valuation of $10bn, firmly secures its position as a leading global cloud enterprise software vendor.
Investments made into IFS Cloud continue to drive demand thanks to new functionality developed in the IFS Cloud April 2022 release, as well as the availability of Customer Experience Management, which is now integrated in the technology platform following the acquisition of Customerville just nine months ago.
Darren Roos, CEO of IFS, said: “For the last four years, IFS has consistently outperformed the market and Q1 is an extension of this trend. Our first quarter of 2022 has delivered exceptional results across the board, and I am proud that these continue to be a validation of our strategy. Both through our software and our success services, we are making it possible for customers to buy and consume technology in the way that creates the most value for them, so they can deliver amazing Moments of Service™ to their customers.”
Constance Minc, CFO at IFS, added: “Q1 is another quarter where IFS has delivered great performance. This is particularly significant because we are achieving this across all our metrics, which paints the picture of a strong and healthy business focused on growth and profitability. Q1 shows a continued shift in the quality of the revenue mix with 70 percent of the total revenue base now being recurring. These strong results highlight the relevance of IFS in its market and demonstrate we have the right growth strategy.”