IFS has announced its financial results for the first quarter ending March 31, 2023, with an ongoing demand for cloud fueling revenue wins as CEO Darren Roos enters his sixth year at the helm.
Net revenue was €236m, seeing an increase of 38 percent from Q1 2022, with recurring revenue contributing the lion’s share of €176m – three-quarters of the total figure – in an increase of 48 percent year-on-year.
Software revenue rose 44 percent YoY for the quarter, reaching €186m, and cloud revenues bumped up results with a 55 percent rise YoY.
The results reflect the broader increase in demand that IFS has seen for cloud technology, specifically from large asset-centric companies across its field service management, planning and scheduling optimization, ERP and enterprise service management offerings. New and existing customers such as RES, Enercare, KAN, HEXPOL, Lujatalo Oy, MyDentist and NCC were mentioned by the firm as contributing to asset management growth in this past quarter.
Looking ahead, the company’s product strategy for the year is set to continue focusing on core industry-specific offerings for composable and flexible enterprise builds.
Commenting on the results, Roos remarked: “I am very proud that we are taking our performance trend from 2022 into 2023. As well as the strength of our technology and the trust our customers place in us, our strong Q1 performance is underpinned by contribution from our FY22 acquisitions which are all performing to plan. Over the past five years we’ve worked hard to improve the agility, quality and resilience of our business model and these investments are paying off as we continue to create shareholder value despite the macroeconomic uncertainty.”
Matthias Heiden, chief financial officer, IFS said: “Q1 saw raised levels of economic uncertainty driving businesses to rethink their technology vendor landscape and seek out those that are showing strong financial performance, innovative in their product offering and agile in their delivery. For IFS, Q1 shows positive and robust results, with our cloud revenues up by 55 percent and our recurring revenue as a share of total revenue at 75 percent.
“These strong results highlight the relevance of IFS in its markets and that we are pursuing the right growth strategy – one which is all about focus.”