IFS, the international cloud enterprise software company, has reported exceptional financial results for 2023, marking six years of strong consecutive double-digit growth. The company showed impressive annual growth, with software revenue shooting up by 33% and cloud revenue surging by up to 46% as both fresh and current customers expedited their shift to the IFS Cloud, a dominant single cloud platform.
The IFS Cloud allows clients to utilise state-of-the-art industrial AI capabilities, underpinning the sectors the company concentrates on. Recognised globally as an industry leader in FSM, EAM, ERP, and ESM services, IFS delivered very strong results across all regions, despite continuous unpredictable economic and geopolitical upheavals. The company's strategy to remain focused on its pivotal industries and broaden its industrial AI abilities with IFS.ai was instrumental to this progress.
ICS CEO, Mark Moffat stated, "This time last year we reported five years of strong consecutive double-digit growth. I am hugely proud that the IFS team has continued this trend and also delivered an outstanding 2023." He heralded the upcoming "significant" landmark for the company, $1bn ARR, explaining that it represents "a strong vote of trust from our customers". Speaking on the company's future plans, Moffat promised a continuation in 2024 of their strategy, focused on delivering industry-specific and market-leading capabilities.
IFS's CFO, Matthias Heiden, echoed the company's sentiments of pride for the results that 2023 yielded. "ARR is clearly an important long-term performance metric, and our 26 percent growth in ARR YoY was driven by new logo acquisitions, significant expansion within the Install Base and low churn. We saw very healthy double-digit growth in all our regions, with a notable outstanding performance in our North American and APJ, ME&A region."
Details for FY2023 are as follows; Software revenue was EUR 853m, an increment of 33% against 2022. Recurring revenue reached EUR 810m, which was a 35% increase compared to 2022 and net revenue was EUR 1.062m, a 30% growth over 2022. The annual recurring revenue (ARR) also shot up by 26% year on year.
Over the year, IFS added 243 new logos across its core industries globally. The company's partners contributed a YoY growth of 10%, rising to 41%. The company also emerged a leader in several areas such as IDC MarketScape: Worldwide Field Service Management Solutions, 2023-2024, and Gartner Voice of the Customer for Cloud ERP for Product-Centric Enterprises with IFS a Customers’ Choice. Its accrued several awards such as the Business Intelligence Awards: Sustainability Winner, March 2023, and Eventex Conference Award: Unleashed, May 2023, amongst others.