Like LinkedIn, recently listed IT service management (ITSM) provider, ServiceNow is a bright spot among publicly traded tech names. Here’s a quick update following our coverage earlier in the summer. The company recently announced quarterly results, and despite reporting a loss in the quarter, its stock seems to be doing well.
ServiceNow’s (NYSE:NOW) Q2 revenues grew 93% over the year to $46.8 million. Increased spending on research and development sent its performance into the red. For the quarter, the company reported a loss of $0.12 compared with earnings of $0.05 reported a year ago. The Street was expecting revenues of $53.7 with a loss of $0.06 a share.
By segment, subscription revenues grew 89% over the year to $46.82 million and professional services revenues grew 113% over the year to $9.95 million.
For the current year, the company is projecting revenues of $233 million-$237 million. The market was projecting the year’s revenues at $230.4 million. ServiceNow expects current quarter revenues to be $61 million-$63 million.
ServiceNow’s Expanding Offerings
According to market reports, ServiceNow is the fourth-largest ITSM provider globally, with 6% market share. The market is led by BMC, which currently owns 40% of the market. HP’s Service Manager is a distant second with 17% market share, followed by CA’s 8% market share. But ServiceNow plans to change that soon by entering new markets and expanding its service offerings.
ServiceNow recently announced a relationship with KPMG to deliver service offerings to help leverage their experience in enterprise IT consulting. The two will work together to design service offerings targeted at shared enterprise customers. KPMG will provide implementation support services, process design, process integration, and IT organizational change consulting for ServiceNow enterprise customers.
ServiceNow also launched a set of new professional services focused on helping organizations transform IT. These are StartNow, which are designed to enhance the company’s professional services methodology. StartNow is based on best practices from customer implementations and combines traditional project management standards with an iterative approach that is focused on accelerating time-to-value.
The company plans to grow internationally and is particularly focused on Asia and Latin America. It is searching for acquisitions that will help it gain a foothold in these regions. In addition, ServiceNow is looking to expand into the public sector within the U.S.. Recently, it won a contract to deliver services to the U.S. Department of Defense.
ServiceNow’s stock has grown 60% over its IPO price of $18.00 and is trading at $28, with a market capitalization of $3.37 billion. It touched a high of $31.43 last week.