According to market reports, the IT service management (ITSM) market is expected to be worth $1.5 billion. Market reports for 2011 saw the market being led by BMC, with a 38.6% market share. HP’s Service Manager came in a distant second, with a little over 20%. CA’s Service Desk Manager was ranked the third, with a 7.2% market share. Last year, ServiceNow accounted for a mere 3% of the market share. But the company’s market share has since grown. Analysts believe that the company now accounts for 10%-15% of the market.
ServiceNow’s (NYSE:NOW) Q3 revenues grew 88% over the year and 13% over the quarter to $64.3 million. A non-GAAP net loss for the quarter of $0.06 per share was worse than the previous year’s earnings of $0.05 per share. During the quarter, the company saw billings grow 96% over the year and 13% over the quarter to $81.2 million.
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 quarter, ServiceNow expects revenues of $69 million-$71 million, projecting annual growth of 76%-81% with a loss per share of $0.05-$0.06. It expects to end the year with revenues of $237.5 million-$239.5 million.
ServiceNow’s Expanding Offerings
As part of its expanding offerings, the company recently released a new version of its cloud-based IT service automation software. Through the new IT Asset Management application, clients will be able to use software more efficiently and will be able to achieve compliance with license terms and requirements. The software should also help organizations to avoid over-purchasing software licenses and maintenance or support contracts.
Earlier last quarter, ServiceNow added end-to-end life cycle automation for managing VMware virtual machines. The service will help organizations manage and use virtual machines more efficiently and reduce expenses spent on administrative time.
ServiceNow’s growing product offerings has led it to be labeled the “Best Overall Offering” in the Enterprise Management Associates (EMA) Next Generation IT Management (NGITM) solutions Radar report. It was also recognized as a Value Leader based on the combination of functionality, price point, and vendor strength. The report names ServiceNow as a pioneer in next generation IT management through its IT management tools and services that help integrate functionality, support, and value-oriented pricing.
ServiceNow’s stock is trading at $29.40, with a market capitalization of $3.67 billion. It listed on the NYSE at $18.00 a share in May 2012. It also made a secondary offering at $28.00 a share in November 2012. The stock touched a 52-week high of $41.77 in September 2012.