IFS has announced its first quarter financial results, demonstrating its best start of the year with 26 percent increase in ARR year-on-year (YoY) and 20 percent jump in cloud revenue YoY, headed by new CEO Mark Moffat.
The first quarter results for the period ending March 31, 2024, indicated robust growth which also saw software revenue grow 19 percent YoY to €217m and net revenue reach €269m – an increase of 16 percent from Q1 2023.
With the fresh direction of leadership, including Cathie Hall’s promotion to chief customer officer and Sophie Graham joining the C-suite team as chief sustainability officer, the last couple of months have further reflected IFS’ customer focus as the team is keeping an ear to the ground.
“In my first 100 days as CEO, I have met with over 100 customers around the world and they consistently tell me that our customer-centric approach is a key differentiator, especially in a world where we see our competitors peddling their own agenda over that of their customers,” Moffat said.
He added that the Q1 results are a continuation of the team’s relentless focus on what makes it successful “listening to and delivering value to customers. It’s also what enables us to outperform the market quarter after quarter. Our customer focus is not only ingrained in our culture, but it also extends across our partner ecosystem and the work they deliver alongside us.”
The company also attributed the success to a significant number of new customers moving from legacy vendors, including SAP and IBM Maximo, to IFS, drawn by its “consistent enhancements in industry functionality and flexible deployment options that put customers in control”.
Over the quarter, Modulaire Group, NGE, Evergy and the US’ largest utility company, Exelon, have selected IFS as their alternative.
In addition, the company highlighted that there is also a significant expansion within existing IFS customers, who are similarly implementing IFS to replace outdated technology that exists in other areas of their businesses.
With more industrial companies looking to technology for transformation and growth, they are seeking help to improve supply chains and operate more efficiently so manufacturers, for example, can be seen expanding their use of IFS with IFS’ Connected Worker solution from Poka to improve the productivity of their factory workers.
Further discussing the financial performance, IFS CFO, Matthias Heiden, said: “Market conditions in 2024 are still volatile which puts our performance trajectory into context. 26 percent ARR increase year-on-year combined with strong subscriptions renewals is setting us up for continued steady growth in 2024.”
Heiden continued: “This means we are able to prioritize investment in people and in technology bringing even more innovation into our bi-annual releases.”
IFS has recently made investments in key markets such as the US, Europe and Japan, poised to continue through 2024, bolstering regional performance by driving increased demand for IFS.ai.
