San Diego Business Journal

ServiceNow Reports Net Loss; Revenue Almost Doubles

Friday, October 26, 2012

ServiceNow Inc., the San Diego provider of cloud based IT services that had its initial public offering in June, reported a third quarter net loss of $13 million on revenue of $64 million. That compared with a net profit of $121,000 on revenue of $34 million for the like quarter of 2011.

CEO Frank Slootman said the quarter’s results were highlighted by continued growth across key financial metrics, and exceeded the company’s previously stated outlook.

“In our first full quarter as a public company, we added over 145 customers bringing our cumulative customer count to 1,346 worldwide, and we achieved a customer renewal rate of 96 percent,” Slootman said.

Among the new customer wins were Discover Financial and Australia Post.

For the fourth quarter, the company forecast revenue coming in between $69 million and $71 million. For the full year, ServiceNow said its revenue should finish in a range from $237.5 million to $239.5 million, or up 85 to 87 percent above its annual revenue of 2011.

Shares of ServiceNow closed at $31.39 on Oct. 25, down by nearly 12 percent from the prior day’s closing price. The stock, traded on the New York Stock Exchange under NOW, has ranged from $22.62 to $41.77 over the past four months.