ServiceNow (NOW) Shares Jump 10% on Strong Guidance by TechStockProspector

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									                                    Robert DeFrancesco’s
                            Tech-Stock Prospector
October 24, 2013

ServiceNow (NOW) Jumps 10% on Strong Guidance
ServiceNow (NOW, $58.37), a provider of cloud-based IT management solutions,
reported another strong quarter, sending the stock up more than 10% on heavy
volume to a new all-time high of $58.41.

ServiceNow is certainly living up to its name as one of our 8 TSP Tech Disruptors for
2013. Revenue in Q3 rose an impressive 73% to $111.3 million, well above the
consensus estimate of $105.5 million. Billings advanced 56% to a record $127
million. Deferred revenue rose 8% sequentially to $225.8 million.

So far this year, the stock has gained 94%. ServiceNow went public in June 2012 at
$18 a share and opened for trading at $23.75.

In Q3, ServiceNow added 122 net new customers, including 22 Global 2000
enterprises. The company now has an installed base of 1,900 accounts, with 357
Global 2000 customers.

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Trailing 12-month revenue per customer reached $219,000, up 21% from the year-
ago quarter and a gain of 5% sequentially. ServiceNow in Q3 closed three deals
worth more than $1 million each.

For Q4, the company expects revenue to come in at $119 million to $121 million,
above the consensus of $115.7 million.

For 2013, ServiceNow once again raised its revenue guidance range:

*NEW: $418.4 million to $420.4 million (growth of 72% to 73%)
*OLD: $406 million to $410 million
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*Trend Watch: The Internet of Things
*Cisco Systems benefits from the smart grid build-out
*Machine-data analysis made easy with Splunk
*A chipmaker sees opportunity in embedded intelligence
*Can the big rebound in Yahoo shares continue?
*Why F5 Networks is attracting more Wall Street bulls
*Akamai Technologies ramps up its sales force for new growth
*How the latest WiFi standard helps Aruba Networks
*4 small-cap takeover ideas for Oracle
*Apple bulls get more optimistic about new product cycles
*Palo Alto Networks gains visibility into security demand
*Tableau Software brings data visualization to the masses
*Why some big investors like Ruckus Wireless
*Recent IPO Benefitfocus brings cloud disruption to health insurance
*Fidelity boosts its stake in beaten down Riverbed Technology
*Fortinet secures SDN environments in the cloud
*Deal Report: Fusion-IO takeover chatter surfaces again

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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.

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