Global cloud enterprise software company IFS announced its financial results for the full year ending December 31, 2021.
The company saw a 22% growth in software revenue in 2021, with cloud revenue going strong at a 105% increase year on year despite Covid-19 headwinds. Our ability to enable our customers to deliver outstanding Moments of Service™ quarter after quarter has been essential for IFS in achieving sustained growth over the last two years, with a 2020/2021 CAGR (compound annual growth rate) of 22% in software revenue and 36% in recurring revenue.
Across industries, companies evolved their business models by leveraging digital technologies and driving innovation into their services, outcomes and/or products in a bid to differentiate and gain competitive advantage in uncertain times. The need for companies to build adaptability in their organizational set up, as well as agility in their responses to shifting customer and consumer demands became crystal clear.
Some key milestones for IFS in 2021 included:
- In February: The company’s rebranding celebrated 30+ years of success brought together under the promise of always delivering great Moments of Service™. The launch itself was acclaimed and secured multiple awards**.
- In March: The launch of IFS Cloud, a tech rich single cloud product with embedded digital innovation that delivers a clear path to Evergreen and a lower TCO. The product also earned the company several awards***.
- In April: The launch of IFS’s sustainability strategy and pledge to become carbon neutral by 2025 as well as the appointment of Lewis Pugh as IFS’s Sustainability Ambassador.
- In June: The acquisition of ITSM and ITOM provider Axios Systems to extend the company’s service offering.
- In July: The acquisition of Customerville, already used by IFS in its Voice of the Customer program, and poised to help IFS customers deliver great Moments of Service™.
- In October: The company announced the winners of its first Change for Good Sustainability Awards which saw over 35 global companies partake, as well as the launch of IFS Cloud’s latest release including the new sustainability module.
- In November: The launch of IFS assyst 11.4 which brings digitized IT self-service to the entire organization through a much-simplified enterprise pricing model.
“Four consecutive years of double-digit growth is something the entire organization is hugely proud of, particularly in view of the challenging circumstances we’ve experienced since 2020,” IFS CEO Darren Roos commented. “in 2021, our goal to help companies deliver their greatest Moments of Service™ also became a reality through our M&A strategy. We successfully integrated two companies into IFS and, since our acquisition of Axios Systems in June, have increased subscription bookings for IFS assyst by 236% compared to the same period in 2020.” Roos continued: “the numbers paint the picture of a strong and healthy business and I am particularly delighted that we are not compromising on any other metrics to achieve this level of sustained growth.”
IFS says it has continued to nurture its “customer-first culture by strengthening its service organization and its partner ecosystem as well as maintaining an active involvement in the work delivered by the IFS Foundation in Sri Lanka, a nation that is home to over 1,500 IFS employees.”
Financial* and Operational Highlights for FY 2021:
FY2021 software revenue was SEK bn 4,928, an increase of 22 percent versus 2020
FY2021 recurring revenue was SEK bn 4,061, an increase of 30 percent versus 2020
FY2021 cloud revenue increased 105 percent versus 2020
FY2021 net revenue was SEK bn 6,767, an increase of 14 percent versus 2020
*Note: all figures based in Swedish Krona and reported in constant currency.
In line with WorkWave establishing itself as a standalone business at the end of Q2 2021, the performance reported above excludes WorkWave’s contribution to the IFS Group. Performance including WorkWave saw software revenue grow at 32% YTD and the IFS Group reach $984M USD revenue in 2021.