IFS Reports Strong H1 Financial Results: for the first time >50% of total revenue came from Field Service Solutions

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21 Jul, 2020, 08:16 GMT

Despite heightened disruption due to the global pandemic, IFS demonstrates resilience and continued growth with 56% growth in Cloud and a 16% increase in revenue

LONDON, July 21, 2020 /PRNewswire/ -- IFS, the global enterprise applications company, today announced its financial results for the first half of 2020 that ended June 30, 2020. The results validate IFS's business strategy, which delivered a 26% growth in software revenue.

In the midst of the most unpredictable market conditions in modern history, IFS showed remarkable resilience. The company took quick action to adapt its business operations to protect its employees, serve its customers with the best solutions in the market and attract new brands to its roster. IFS added 88 new customers in the first half, including Alfa Laval, Amentum, BRITA, Carlsberg and Panasonic. These businesses are among the growing majority of companies who understand the urgency to digitally transform leveraging service.

IFS Chief Executive Officer Darren Roos commented, "Our focus remains on delivering value to our customers and never before has this mission been more critical to their survival. Our close collaboration with our partners has ensured we remain relevant, which is reflected in our results. Our recent announcement about EQT and TA Associates' ownership is a real endorsement of our strategy and our enormous potential to continue to capture market share."

IFS Chief Financial Officer, Constance Minc added, "Our net revenue growth of 16% and combined with our ongoing margin expansion really highlights the quality of the business. We see recurring revenue is now at 80% of the total software revenues."

Financial and Operational Highlights for H1 2020:

Net revenue was 3,482 million SEK (US $360 million), an increase of 16% versus H1 2019
Cloud revenue increased 56% versus H1 2019
Gross margin improved 19%

Earlier this month, IFS was recognized as a Leader in the 2020 Gartner Magic Quadrant for Field Service Management¹, a designation the company has enjoyed 5 times running. In June, IFS placed as a Visionary in the 2020 Gartner Magic Quadrant for Cloud ERP for Product-Centric Enterprises². Also earlier this year, Gartner Peer Insights named IFS a Customers' Choice recipient for its Enterprise Asset Management solutions³. IDC has recognized IFS as a Leader in its 2020 MarketScape for SaaS and Cloud-Enabled Large Enterprise ERP Applications⁴, a Leader in its 2019 MarketScape for SaaS and Cloud-Enabled EAM Applications⁵, and also a Leader in its 2019 MarketScape for Manufacturing FSM Applications⁶. Continued recognition and validation from respected third-party industry experts confirm IFS's prominent market position as it looks to expand its market reach further in 2H 2020.

Note: revenue growth figures based on Swedish Krona H1 2020 versus H1 2019 and are reported in actual currency.

Learn more at https://www.ifs.com/corp/company/financial-results/latest-update/.

¹Gartner, Inc., "2020 Magic Quadrant for Field Service Management", Jim Robinson and Naved Rashid, July 6, 2020
²Gartner, Inc., "2020 Magic Quadrant for Cloud ERP for Product-Centric Enterprises", Tim Faith, Duy Nguyen, Denis Torii, Paul Schenck and Christian, June 22, 2020
³Gartner Peer Insights Customers' Choice constitute the subjective opinions of individual end-user reviews, ratings, and data applied against a documented methodology; they neither represent the views of, nor constitute an endorsement by, Gartner or its affiliates.
⁴IDC MarketScape: Worldwide SaaS and Cloud-Enabled Large Enterprise ERP Applications 2020 Vendor Assessment, Kevin Permenter Mickey North Rizza Frank Della Rosa, July 2020, IDC #US45971820
⁵IDC MarketScape: Worldwide SaaS and Cloud-Enabled Asset-Intensive EAM Applications 2019 Vendor Assessment, Kevin Permenter Mickey North Rizza Frank Della Rosa, March 2019, IDC #US44891419
⁶IDC MarketScape: Worldwide Manufacturing Field Service Management Applications 2019 Vendor Assessment, Aly Pinder, Doc #US44408719, November 2019

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