IFS growth outperforms market in 2020 with 26% increase in software revenue

- 60% increase in Cloud revenue and 43% increase in recurring revenue YoY, despite macroeconomic backdrop

- Recurring revenue share now 80% of software revenue

- Service management license revenues increase by 105% YoY

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Jan 28, 2021, 04:17 ET

LONDON, Jan. 28, 2021 /PRNewswire/ -- IFS, the global enterprise applications company, today announced its financial results for the full year ended December 31, 2020.

2020 saw widespread market disruption due to the Covid-19 pandemic. This has heightened the need for companies to build resilience into their business and adopt digital business models.

With this backdrop IFS has stood firm in its commitment to deliver measurable benefits to its customers and has doubled down on ensuring a faster time to value. This has been instrumental in delivering sustained growth in revenue and led to a 105-percent increase in Service Management revenue.

Some of the key milestones for IFS in 2020 included:

The acquisition of Clevest that has increased the depth of IFS's service management proposition
The launch of IFS Remote Assistance, that won Business Innovation of the Year at the Technology Excellence Awards
Growth in IFS's ecosystem, now with over 8,000 customers and partners having participated in paid-for and free training
The IFS Community growing to over 5,000 active contributors
The launch of the IFS Voice of the Customer program that has helped IFS achieve the highest customer satisfaction scores compared to industry peers (according to Gartner Peer Insights).

Throughout the year, IFS has continued to nurture its customer-first culture, strengthen its partner ecosystem and from a sustainability perspective, support the IFS Foundation, which is building a Technology Lab for Welasiya College in Puttalam District of Sri Lanka, a nation that is home to over 1,500 IFS employees.

IFS CEO Darren Roos commented: "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 customers continued to shine. I am hugely proud of that."

Roos continued, "I am also really proud to see that a sinificant part of 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."

IFS Chief Financial Officer, Constance Minc, added, "This is the third consecutive year that IFS has delivered double digit growth, and over this period we have grown recurring revenue by 250%. This consistency, together with the improved revenue mix, reveals a strong business that continues to deliver with all the right ingredients to capitalize on our investment cycle. We have real strength in our service proposition, demonstarted by license revenue growing at 105 percent in 2020, as well as an industry focus in sectors like aerospace and defense that will ensure that we continue to deliver value to our customers."

Financial and Operational Highlights for FY 2020, growth YoY:

FY2020 software revenue was MSEK 5,092, an increase of 26 percent versus 2019
FY2020 recurring revenue was MSEK 4,081, an increase of 43 percent versus 2019
FY2020 cloud revenue increased 60 percent versus 2019
FY2020 net revenue was MSEK 7,211, an increase of 14 percent versus 2019
In addition, service business license revenue grew 105 percent versus 2019 while aerospace and defense license revenue grew 37 percent.

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