IFS H1 Financial Results: Demand for Industrial AI Drives Strong Double-Digit Growth with ARR up 24% YoY

London, UK, July 23rd 2024 – IFS, the leading technology provider of enterprise cloud and Industrial AI software, today announces its first half-year financial results, 2024.

The results demonstrate a continued trend of strong double-digit growth with Annual Recurring Revenue up 24% YoY to over EUR 850m and Cloud Revenue up 20% YoY.

Summary of H1 financial performance:

• Annual Recurring Revenue (ARR) up 24% YoY vs. H1 2023
• Cloud revenue up 20% YoY vs. H1 2023
• Software revenue now represents 82% of total revenue

The continued momentum is the result of both IFS’s differentiated position and category leadership in Asset and Service Management software, as well as its laser focus on rapidly returning customers value and reducing total cost of ownership. IFS’s north star remains on helping customers deliver for their customers when it matters most – at the Moment of Service.

IFS’s AI-powered technology is specific and relevant to the industry our customers operate in and stands out as it is highly composable – meaning customers buy what they need today but can easily scale and extend as they grow. Businesses across the world are relying on IFS.ai to optimize core business processes, manage the full lifecycle of physical assets, and enhance the efficiency and effectiveness of their assets and their field service operations.

In H1 2024, customers including Exelon, ThyssenKrupp, Molson Coors, Alcoa, Oreca Group, and Bucher Emhart selected and extended their use of IFS. Customers are using IFS.ai to manage the assets that deliver energy to tens-of-millions of peoples’ homes across the US, connecting workers in some of the worlds’ most advance manufacturing sites, through to effectively scheduling tens-of-thousands of engineers to efficiently operate utilities and telco networks in the field.

In the last six months alone, IFS has added over 170 new logos in addition to upgrading hundreds of existing customers to IFS Cloud. Over 500 customers have engaged with IFS’s Business Value Engineering capability using IFS’s unique Six Box Model™, with an average productivity improvement of 23.6% identified, achieving a combined $15bln savings per annum. For example, a well-known facilities management customer has identified IFS to improve the efficiency of their field workforce and assets uptime that is resulting in a 30% reduction in CO2 output and a 10% productivity improvement, generating significant business value.

The new Industrial AI capabilities available in IFS Cloud, that are part of the most recent 24R1 release, are driving value realization faster than ever before and enabling customers to deliver on their strategic priorities. One example of this is the ESG module for IFS Cloud which comes from IFS’s partnership with PwC. The collaboration has been announced to help customers navigate and report on requirements of the Corporate Sustainability Reporting Directive (CSRD) and other emerging mainstream global regulatory standards that our customers are facing.

Looking ahead, IFS continues to be strategic about future technology and industry investments, announcing in June 2024 its intent to acquire Copperleaf, provider of AI-powered asset management software. The acquisition is expected to complete in Q3 2024 and will not only advances IFS’s leadership position in Asset and Service but extends the company’s Total Addressable Market (TAM) with the ability to offer Asset Investment Planning (AIP) capabilities. Additionally, in July 2024, IFS announced the acquisition of EmpowerMX, a leader in MRO (Maintenance Repair and Overhaul) software, that adds some of the world’s most impressive commercial aviation customers, such as Delta and American Airlines to IFS’s aviation and defence portfolio.

Mark Moffat, IFS CEO, commented:

“I am immensely proud of IFS's dedication to maintaining our trajectory of robust growth and focused market leadership. Our sustained double-digit growth, especially in an unpredictable macroeconomic environment, is the result of our unwavering commitment to delivering exceptional value to our customers, which allows us to continually outperform market benchmarks. Annual Recurring Revenue signals the trajectory of our business moving forward, so to see this increase again by 24% is hugely positive and reflects the hard work of our team and effectiveness of our partners to drive value for customers.” He continued: “The investments we are making today will drive long-term success and solidify IFS's position as a leader in the industry for years to come. Our performance is not a one-time achievement. It is further illustration of our consistent long-term growth, which is a great sign of our solid fundamentals and reliability for investors. With 26 consecutive quarters of delivering to budget, we are proving that our growth is sustainable and built on a strong foundation.”

Matthias Heiden, IFS CFO, added:

“Maintaining a consistent growth trend over six years does not happen accidentally. It is a direct result of focusing on flawless execution quarter after quarter to deliver customer success, which is evident when looking at our performance. Our close alignment with our customers’ strategic priorities is also clearly reflected in our strong organic growth, indicating that we are leading the pack on technology and this will help retain our strong position for the future. Recurring revenue is an excellent predictability measure, and our performance in this regard bodes well for the future. The 20% growth in cloud revenue reflects the strategic imperative and benefits our customers continue to realize in moving to the cloud so they can harness Industrial AI at scale.”

IFS’s customer focus and technology leadership position has been reinforced by recent independent recognition of market leadership across the major product categories it serves:

• IFS named a Customers’ Choice in the 2024 Gartner® Peer Insights™ Voice of the Customer for Cloud ERP for Product-Centric Enterprises
• IFS ranked #1 for EAM market share in the Gartner® Market Share: All Software Markets, Worldwide, 2023 report for third consecutive year
• IFS has an Overall Rating of 4.7 out of 5 in the Field Service Management market, based on Gartner Peer Insights™ *
• IFS has an Overall Rating of 4.6 out of 5 in the IT Service Management Platforms market, based on Gartner Peer Insights™ **

* As of 16th July, 2024, based on 53 reviews on Gartner Peer Insights
**As of 16th July, 2024, based on 22 reviews on Gartner Peer Insights

About IFS

IFS is the world’s leading provider of Industrial AI and enterprise software for hardcore businesses that make, service, and power our planet. Our technology enables businesses which manufacture goods, maintain complex assets, and manage service-focused operations to unlock the transformative power of Industrial AI™ to enhance productivity, efficiency, and sustainability.

IFS Cloud is a fully composable AI-powered platform, designed for ultimate flexibility and adaptability to our customers’ specific requirements and business evolution. It spans the needs of Enterprise Resource Planning (ERP), Enterprise Asset Management (EAM), Supply Chain Management (SCM), Information Technology Service Management (ITSM), and Field Service Management (FSM). IFS technology leverages AI, machine learning, real-time data and analytics to empower our customers to make informed strategic decisions and excel at their Moment of Service™.

IFS was founded in 1983 by five university friends who pitched a tent outside our first customer's site to ensure they would be available 24/7 and the needs of the customer would come first. Since then, IFS has grown into a global leader with over 6,500 employees in 80 countries. Driven by those foundational values of agility, customer-centricity, and trust, IFS is recognized worldwide for delivering value and supporting strategic transformations. We are the most recommended supplier in our sector. Visit ifs.com to learn why.