IFS has announced its financial results for the year ending 31 December 2020 and they make for impressive reading.
Its service management license revenue increased by 105 percent, which it attributes to the growing need for companies to adopt digital business models as a result of market disruption caused by the COVID-19 pandemic. The company also reports a 26 percent increase in software revenue, a 60 percent increase in cloud revenue and a 43 percent increase in recurring revenue year-on-year.
IFS sells its products and services into asset-heavy industries and focusses on five key verticals including aerospace and defence, energy, manufacturing engineering and services. It has added some notable logos to its customer base such as Carlsberg, Panasonic and the US Navy and continues to make inroads on the territory historically occupied by SAP and Infor.
The culmination of three years hard work will be revealed in early March when IFS will unveil its new IFS cloud offering – we anticipate this will be a unification of the various IFS product lines – IFS Applications, Maintenix and its field service offering – bringing a common look and feel to the IFS front end and a much tighter integration of the products on the back end. Watch this space for more news on the launch in the next issue of ERP Today – conveniently out on 10th March.
Darren Roos, IFS CEO, said: “I think that every CEO will have been affected one way or another by 2020. Like many, we had to adapt as individuals and as a business, but the passion this team has for our customers continued to shine. I am hugely proud of that. I am also really proud to see that a significant part our license revenue has come from new logos, customers who have moved away from their legacy vendor; this combined with our performance in recurring revenue points the performance of a very strong business. 2021 will be a hugely important year for IFS as we launch IFS cloud on March 10th.”
Constance Minc, IFS chief financial officer, added: “This is the third consecutive year that IFS has delivered double digit revenue growth, and over this period we have grown recurring revenue by 250 percent. This consistency, together with the improved revenue mix, reveals a strong business that continues to deliver with the all the right ingredients to capitalise on our investment cycle. We have real strength in our service proposition, demonstrated by license revenue growing at 105 percent percent in 2020, as well as an industry focus in sectors like aerospace and defence that will ensure that we continue to deliver value to our customers.”