IFS reports strongest financial results for 2024

IFS has reported its most robust financial results to date for the fiscal year ending December 31, 2024, driven primarily by heightened demand for Industrial AI solutions.

The company achieved an Annual Recurring Revenue (ARR) surpassing EUR €1 billion (AUD $1.6 billion), while total revenue for the year reached EUR €1.228 billion (AUD $2.049 billion).

The company's ARR saw a 32% year-on-year (YoY) increase, and cloud revenue experienced a 38% YoY growth.

IFS has welcomed 350 new customers during the year, including notable brands such as Comcast, Electrify America, E.On, Exelon, HomeServe, Miele, Molson Coors, Modulaire Group, Rolls-Royce Power Systems, Saudi Electricity Company, Sureserve Group, Quanta Services, and Vattenfall. These new customers are primarily large enterprises, reflecting a 64% YoY increase in the average deal size of IFS's largest clients.

The company's global partner community significantly contributed to its financial success, with partner revenue increasing by 34% YoY. IFS also completed two strategic acquisitions in 2024, namely Copperleaf, a leader in asset management and asset investment planning, and EmpowerMX, a provider of AI-powered aviation maintenance software.

Mark Moffat, Chief Executive Officer of IFS, stated: "IFS is leading the Industrial AI revolution, evidenced by our sustained financial performance that is fuelled by customer demand for IFS.ai."

"It is testament to the trust we have built, and I offer my gratitude to our customers and partners for their collaboration, visionary spirit, and confidence in our shared future."

Adding to this, Moffat remarked, "Our success is a result of strong execution of our industry-focused strategy. No other vendor understands our customers' industries as well as IFS, which simply means that our customers are realising exceptional value from IFS.ai. We continue to outperform monolithic, legacy enterprise software vendors who have not kept up with the pace of change."

Commenting on the financial achievements, Matthias Heiden, Chief Financial Officer of IFS, said: "Surpassing €1 billion ARR is a significant milestone in the enterprise software industry, reflecting the reliability with which we execute. Cash flow and conversion also grew significantly in the period, meaning business transformation and strategy execution was very strong, enabling us to grow ARR 32% YoY. I am confident that IFS is well-positioned for 2025, with a strong outlook based on the resilience we have built into the business, industry-focused innovation and our subscription-based business model."

Customer satisfaction remains a key priority for IFS, with the firm's Customer Satisfaction (CSAT) score increasing to over 80% in 2024. This score is assessed comprehensively across various interactions throughout the customer lifecycle, unlike the typical industry practice of annual evaluations.

IFS has also been distinguished as a Gartner Peer Insights Customers' Choice in categories such as Field Service Management, Cloud ERP for Product-Centric Enterprises, and Enterprise Asset Management. In addition, the company was acknowledged as the fastest growing vendor among the top 10 companies in the IDC Worldwide Asset Life-Cycle Management Applications Market Shares 2023 report and placed first in The Software Report's Top 100 Software Companies for 2024.