IFS has announced its financial results for the first half (H1) of 2023, demonstrating robust forward performance with both cloud and annual recurring revenues up 55 percent year-on-year at constant currency.
The firm’s combined financial results for the first two quarters, ending June 30th, saw its total revenue reach €493m, an increase of 38 percent from H1 2022.
Leading with its ERP, enterprise asset management, field service management and enterprise service management developments, IFS’s software revenue reached €392m, a 44 percent increase from last year, with recurring revenue also up 49 percent YoY to €373m.
IFS said in a press release that despite the continued challenges posed by high inflation and monetary policy tightening, companies are continuing to invest in technology and so its roadmap remains firmly aligned to technology trends that accelerate intelligent insights, automation plus people and asset optimization.
Following a sharp rise in AI demand from both new and existing customers, the company is also en route to accelerate the delivery of AI technologies throughout its automation, prediction and optimization capabilities. It comes also as IFS has recently shared with ERP Today that there is potential for AI in a feedback loop, allowing the automation of business processes to become automated.
Darren Roos, CEO of IFS, said: “We already provide a significant amount of AI natively in our products across scheduling optimization, predictions and intelligent insights capabilities, and as companies continue to invest in technology, despite economic challenges, our AI capabilities are proving a crucial differentiator.”
IFS CFO, Matthias Heiden, added: “The ongoing macro-economic challenges mean companies are thinking carefully about their technology investments and focus on what will help build business resilience. We see this reflected in the number of customers moving to IFS Cloud and in how customers are prioritizing when and where they extend their IFS footprint”.
In May’s IFS Connect event, the figure of the company’s customers yet to transition to IFS Cloud was put at 30 percent.
As part of the company’s H1 progress, June saw IFS acquire Poka, extending its capabilities with connected worker technology aimed at empowering factory and field employees to work smarter, safer and more efficiently.
Some of Poka’s customer base includes global brands such as Nestlé, Tetra Pak, Mars, Bosch and RioTinto.
During his five-year tenure as CEO, Roos has been focused on integrating multiple acquisitions and new capabilities, with the company having completed its own transformation in the meantime and shifted its products and services business model to fully subscription-based.