IFS, provider of enterprise cloud and Industrial AI software, recently announced its strongest ever financial performance, for the year ending December 31, 2024. Sustained organic global growth fueled by demand for Industrial AI has driven Annual Recurring Revenue (ARR) to exceed €1 billion, with total revenue for the year at €1.228 billion.
IFS FY2024 Key Results:
- Annual Recurring Revenue increased by 32% YoY
- Cloud Revenue increased by 38% YoY
The impact of AI within the industrial setting is poised to contribute substantial long-term economic value in industries that protect, power, and service the planet, and IFS’s growth in 2024 reflects this demand.
With some of the world’s largest brands moving to IFS, the company welcomed over 350 new customers, including: 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. The customers who are new to IFS are larger businesses, which is reflected in the average deal size of IFS’s largest customers increasing by 64% YoY.
IFS was founded in 1983 by five university friends who pitched a tent outside their first customer’s site to ensure they would be available 24/7 and the needs of the customer would come first. Since then, IFS has grown significantly and now has over 7,000 employees in 80 countries. Driven by those foundational values of agility, customer-centricity, and trust, IFS has become known for delivering value and supporting strategic transformations.
IFS’s global partner community continues to play a significant role in delivering value to customers, with partner revenue increasing 34% YoY. Organic growth was complemented by the completion of two strategic acquisitions including Copperleaf, provider of asset management and asset investment planning (AIP) solutions, and EmpowerMX, an AI-powered aviation maintenance software provider.
Mark Moffat, Chief Executive Officer, IFS commented: “IFS is leading the Industrial AI revolution, evidenced by our sustained financial performance that is fueled 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.”
“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 realizing exceptional value from IFS.ai. We continue to outperform monolithic, legacy enterprise software vendors who have not kept up with the pace of change.”
IFS emphasizes customer-centricity as a key driver of its strong financial performance. IFS customer satisfaction increased to over 80% in 2024, measured holistically across multiple touchpoints throughout the year and spanning the entire lifecycle, as compared to the conventional practice of an annual pulse check.
Matthias Heiden, Chief Financial Officer, IFS commented: “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.”
What this means for ERP Insiders
Learn from the IFS customer base. Kitron, an Electronics Manufacturing Services (EMS) company, operates across Norway, Sweden, Lithuania, Germany, Poland, China, and the USA, and it needed to standardize processes across its global operations to improve efficiency and support rapid growth, especially in regulated environments like medical device manufacturing. Implementing IFS ERP enabled Kitron to standardize work processes, manage alternative suppliers effectively, and make better-informed decisions based on accurate data. The company achieved 30% year-over-year quarterly growth, streamlined supplier relationship management, and enhanced its ability to manage complex manufacturing operations. China Airlines sought to modernize its MRO operations to enhance efficiency and safety, and it needed to replace its legacy systems with a modern solution capable of supporting complex MRO activities and ensuring regulatory compliance. China Airlines implemented IFS Cloud to integrate and streamline its MRO processes, providing real-time data access and improved operational control. As a result, the airline achieved safer, faster, and better MRO operations, enhancing performance excellence and supporting its commitment to safety and reliability. Cheer Pack North America, a manufacturer of spouted pouch packaging, faced challenges related to rapid growth and increasing operational complexity, and the company needed a solution to enhance visibility into operations, improve decision-making, and support continued growth. By implementing IFS Cloud, Cheer Pack North America gained real-time insights into its operations, enabling better resource planning and agility in responding to market demands. The company improved operational efficiency, enhanced its ability to manage growth, and strengthened its position in the competitive packaging industry.
What to look for when an enterprise technology vendor says it is “customer-centric.” Customer-centricity is a value claimed to be held by many companies. But few deliver on all that it entails. In the area of onboarding and implementation, enterprise software customers should expect to see dedicated implementation consultants to guide the deployment process, industry-specific configuration ensuring software meets business needs, data migration assistance to ensure seamless transition from legacy systems, and customized user training based on roles (executives, managers, IT, end-users). And in the area of customer success, customer-centric vendors like IFS will conduct Quarterly Business Reviews (QBRs) to assess value realization and future needs, host Customer Advisory Boards (CABs) where customers influence product roadmap, deploy dedicated account managers ensuring long-term alignment and support, and offer on-demand consultation for process optimization and best practices. Increasingly, business and IT leaders are hearing terms like “user-centric innovation” from enterprise software providers. This includes things like AI-driven usage analytics to recommend feature adoption, regular customer feedback loops for UI/UX and functionality enhancements, early access to beta features for real-world testing before full releases, and industry-focused updates to keep up with regulatory and market changes.
Do you fit within IFS’s ideal customer profile (ICP)? Companies that stand to gain the most from IFS’s strengths as an ERP provider are companies involved in discrete and process manufacturing seeking to optimize production processes and to manage extensive assets with integrated enterprise asset management solutions. This includes aerospace and defense companies, requiring stringent compliance and complex project management capabilities, energy and utilities companies managing large-scale assets and infrastructure projects, construction and engineering firms needing robust project lifecycle management and resource planning, and service industries in which companies offer field service management and are aiming to enhance customer satisfaction. Also, IFS’s customers are typically mid-sized to large enterprises with substantial operational complexity and a need for scalable solutions, as well as operations that span multiple regions requiring solutions that support diverse regulatory and operational requirements. And IFS’s customer are by and large enterprises committed to modernizing their IT infrastructure and adopting cloud-based solutions.
