IFS, the global cloud enterprise software company, on Thursday said that with recurring revenues up a significant 48% year-on-year, the cloud and software revenues were up 55% and 44% respectively.
Announcing the financial results for the quarter ending 31 March 2023, IFS cited strong penetration in all its markets and a solid performance across all solution segments.
The software revenue was $205.64 million, and the recurring revenue was $194.58 million. Similarly, the cloud revenue increased 55% versus Q1-2022 and the net revenue was $260.92 million in the first three months of 2023, an increase of 38% percent compared with Q1-2022.
IFS was recognized by customers on Gartner Peer Insights™ as a Customers’ Choice in the February 2023 Gartner Peer Insights ‘Voice of the Customer’: Cloud ERP for Product-Centric Enterprises. The company was also named to the Constellation ShortList of top vendors Product-Centric Cloud ERP, Q1 2023
The current economic dynamics are challenging CIOs to prioritize technology investments that help build agility and resilience in their business.
Concurrently, they must balance the need to lower their TCO (Total Cost of Ownership) with the imperative of accelerating business value realization through increased productivity and efficiency. Globally, companies continue to pursue customer loyalty through differentiation and innovation to achieve competitive advantage.
As well as delivering a strong and consistent financial performance, IFS continues to be acknowledged for its software and services, which combined make it possible for customers to buy, consume and update their technology in a way that creates the most value and makes them evergreen.
IFS CEO Darren Roos said that he was proud to continue with the company’s performance trend from 2022 into 2023.
“As well as the strength of our technology and the trust our customers place in us, our strong Q1 performance is underpinned by contribution from our FY-2022 acquisitions which are all performing to plan. Over the past five years we have worked hard to improve the agility, quality and resilience of our business model and these investments are paying off as we continue to create shareholder value despite the macroeconomic uncertainty,” Roos added.
IFS Chief Financial Officer, Matthias Heiden, said that Q1 saw raised levels of economic uncertainty driving businesses to rethink their technology vendor landscape and seek out those that are showing strong financial performance, innovative in their product offering and agile in their delivery.
“For IFS, Q1 shows positive and robust results, with our Cloud revenues up by 55% and our recurring revenue as a share of total revenue at 75%.” Heiden continued: “These strong results highlight the relevance of IFS in its markets and that we are pursuing the right growth strategy – one which is all about focus,” Heiden said.