IFS reports record growth in Q3 2024 with key acquisitions
IFS has reported record growth for the third quarter of 2024, ending 30 September, with strong financial performance bolstered by organic global expansion and strategic acquisitions.
The company's Annual Recurring Revenue (ARR) increased by 30% year-on-year, reinforcing its role as a prominent player in industrial software solutions. Software revenue also exhibited a robust 20% year-on-year increase. The adoption of IFS Cloud by new customers surged by 71% compared to the previous year, boosting cloud revenue by 46%.
During the third quarter, IFS successfully completed two significant acquisitions. It acquired Copperleaf Technologies, a company valued at CAN$1 billion, known for its strategic asset management and asset investment planning solutions. Additionally, IFS acquired EmpowerMX, a provider specialising in AI-powered aviation maintenance software, focusing on airframe maintenance repair and overhaul solutions. These acquisitions made a nominal contribution to the quarter's financial results since they concluded near the quarter's end.
The company expanded its customer base by adding over 90 new organisations in Q3, including Comcast, Drayton Aerospace, General Dynamics Ordnance and Tactical Systems-Canada, Quanta Services Australia, and Rolls Royce Power Systems. This growth was driven by increasing demand across various regions for its AI-powered and sustainability-enhancing, industry-specific solutions.
Mark Moffat, the Chief Executive Officer of IFS, commented, "Our Q3 results reflect IFS's commitment to solving critical industry challenges through Industrial AI. IFS.ai is driving the next industrial revolution, and our continued growth is testament to the value we're delivering to customers and partners alike." He elaborated that IFS's vision is to become the leading entity in industrial software, emphasising the alignment of their financial performance with this ambition.
Matthias Heiden, Chief Financial Officer, added, "The 30% growth in ARR demonstrates our success in driving predictable, profitable growth. We continue to lead with customer-focused solutions, strongly supported by our innovative global partner network." He highlighted the role of customer-centric solutions in achieving these results.
Furthermore, recent developments include the launch of IFS Cloud 24R2, featuring IFS.ai-powered capabilities and an array of over 60 AI applications to facilitate widespread Industrial AI adoption. In conjunction with PwC, IFS introduced the new IFS Cloud Sustainability Management Module designed to address customer ESG disclosure challenges, including the Corporate Sustainability Reporting Directive (CSRD).
IFS also received recognition in several areas: it was named a Customers' Choice in the 2024 Gartner Peer Insights Voice of the Customer for Cloud ERP for Product-Centric Enterprises, a leader in the Verdantix Green Quadrant for Enterprise Asset Management Software 2024, and a Leader and Fast Mover in the GigaOm Radar for IT Service Management.
