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NorthlandServiceNow

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									                                    Robert DeFrancesco’s
                           Tech-Stock Prospector
October 4, 2013

Cloud Disruptor: ServiceNow (NOW) Shares Hit New All-Time High

Shares of ServiceNow (NOW, $55.01), a provider of cloud-based IT management
solutions, today hit a new post-IPO high at $55.46 after getting an upgrade by
Northland Capital to ‘Outperform’ with a $62 price target.

The firm says recent checks with customers and integration partners revealed
positive feedback on the ServiceNow portfolio. The firm was most surprised by
customer plans to quickly move from adopting core applications to adopting the
platform. Platform revenue is stickier and presents a more open-ended opportunity;
Northland sees these two factors as positives in terms of driving ServiceNow’s
valuation.

ServiceNow is one of our 8 TSP Tech Disruptors for 2013. So far this year, the stock
has gained 83%. The company, which went public in June 2012 at $18 a share and
opened for trading at $23.75, now sports a market cap of $7.5 billion.

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Discover the most promising cybersecurity stocks. Download the September 2013
issue of Tech-Stock Prospector to your Amazon Kindle or Kindle for iPad/iPhone
reading app: http://www.amzn.com/B004T6Z0ME
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In Q2, revenue advanced 80% to $102.2 million, 7% above the consensus estimate.
Billings of $117.5 million rose 63%. The company added 138 net new customers (up
from 128 adds in Q1), bringing the total base up to 1,778. ServiceNow counts 335 of
the Global 2000 companies as customers (penetration rate of 17%), including 24
additions in the latest quarter.

The company’s overall renewal rate remains robust at 94%. Up-sells represented
25% of the total annual contract value signed during the quarter. Average revenue
per customer rose to $209,000 from $173,000 in the year-ago quarter.

The company in Q2 signed a record four deals with annual subscription contract
values greater than $1 million, and there were many other deals that pushed near
the seven-figure level. Fully 76% of customers have now built custom apps on the
ServiceNow platform, with an average of 3.9 per customer.
Once again, ServiceNow was able to boost 2013 revenue guidance: The new range of
$406 million to $410 million (growth of 67% at the midpoint) is well above the
previous range of $394 million to $398 million.

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Read the September 2013 issue of Tech-Stock Prospector on your Amazon Kindle
or Kindle for iPad/iPhone reading app.

Here are some of the topics covered in the latest issue:

*Buyers rush into recent cloud-software IPOs
*Why ServiceNow was able to raise guidance yet again
*Workday causing major disruption for legacy ERP vendors
*F5 Networks looks to security to add growth in 2014
*Fortinet in Q2 attracted some savvy money managers
*Imperva emerging as a hot vendor in datacenter security
*Proofpoint brings Big Data techniques to cybersecurity
*FireEye getting IPO buzz in the security space
*Infoblox builds out its DNS firewall business
*Splunk expands its portfolio of machine-data solutions
*The outlook brightens for Facebook
*New growth drivers at Intel
*Salesforce.com steps up growth, confounds the critics
*Could privately held SugarCRM disrupt Salesforce’s growth?
*Tech Focus: Rally Software stays agile
*Why some big investors like Akamai Technologies
*Deal Report: Rocket Fuel IPO

Order the September 2013 issue of TSP here:
http://www.amzn.com/B004T6Z0ME


Tech-Stock Prospector Managing Editor Rob DeFrancesco has more than 20
years of experience covering the tech sector. He is a former senior writer with
Louis Rukeyser’s Wall Street.

TechStockProspector.com, launched in 2003, is an investment-research service
focused primarily on the networking, storage, security, wireless and software
sectors. Annual subscription: $350.

For more information or to place an order, call 800-392-0998.

								
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