Rise in AI demand drives strong IFS results in 2023

IFS building

IFS has announced the financial results for its year-to-date (YTD) FY2023, reporting total revenues of €749m, an increase of 33 percent year-on-year (YoY).

For FY2023, software revenue was €597m, an increase of 37 percent YoY, while recurring revenue reached €560m, an increase of 38 percent as cloud revenues continued to boom for IFS with a jump of 54 percent.

The company’s strong results in the last 12 months were driven by its wins, global customers and partnerships in recent months, some of which include Tele2, Van Oord, Wahaj, Roxtec and more.

Matthias Heiden, CFO of IFS, said: “It is evident that the macro-economic challenges continue to impact many industries.

“…That said, we are pleased to be engaged with many forward-thinking customers who understand the need and opportunity to leverage technology to drive efficiency in their business. IFS is well-positioned to help them achieve competitive differentiation. This has translated into significant growth with total revenue up 33 percent year-to-date vs 2022 and ARR up 49 percent YoY.

“Reviewing our performance so far in 2023, I am not only proud that we are outperforming the market but that we are achieving this robust mix without compromising on any other metrics; we are building on the strong performance of previous years delivering the value customers need.”

IFS is continually investing in its AI capabilities and technologies after the increase in demand following its H1 results earlier this year. IFS.ai aims to extend the value of AI across capabilities and throughout customers’ business, aiming to accelerate automation, prediction and optimization capabilities.

Darren Roos, CEO of IFS, said: “The 37 percent increase in software revenue over the last 12 months is a testament to the trust our customers have in IFS and the dedication of our teams.

“IFS has transformed into a cloud-first technology vendor that continues to create value through organic growth and acquisition to stay at the forefront of innovation.

IFS.ai is a continuation of our ambition to innovate and puts IFS in a leading position to democratize AI for all users. Our goal is to anticipate our customers’ needs and deliver when it matters to them, creating value at every step.”