Company Overview
| Company Name |
SERVICENOW, INC. |
| Company Address |
4810 EASTGATE MALL
SAN DIEGO, CA 92121 |
| Company Phone |
858-720-0477 |
| Company Website |
www.service-now.com |
| CEO |
Frank Slootman |
| Employees (as of 3/31/2012) |
728 |
| State of Inc |
CA |
| Fiscal Year End |
12/31 |
| Status |
Priced (6/29/2012) |
| Proposed Symbol |
NOW |
| Exchange |
New York Stock Exchange |
| Share Price |
$18.00 |
| Shares Offered |
11,650,000 |
| Offer Amount |
$209,700,000.00 |
| Total Expenses |
$2,900,000.00 |
| Shares Over Alloted |
0 |
| Shareholder Shares Offered |
2,650,000 |
| Shares Outstanding |
120,289,770 |
| Lockup Period (days) |
180 |
| Lockup Expiration |
12/26/2012 |
| Quiet Period Expiration |
8/8/2012 |
| CIK |
0001373715 |
We estimate that our net proceeds from the sale of the shares of common stock
offered by us will be approximately $147.8 million based on the initial public
offering price of $18.00 per share, after deducting underwriting discounts and
commissions and estimated offering expenses payable by us. If the underwriters
exercise their over-allotment option in full, we estimate that the net
proceeds from this offering will be approximately $170.4 million, after
deducting underwriting discounts and commissions and estimated offering
expenses payable by us. We will not receive any proceeds from the sale of
common stock by the selling stockholders.
The principal purposes of this offering are to create a public market for our
common stock, obtain additional capital, facilitate our future access to the
public equity markets, increase awareness of our company among potential
customers and improve our competitive position. While we have no specific
plans at this time, we may use some of the proceeds from this offering to make
additions to and expand our data center operations, and to build out our
office facilities. We intend to use the net proceeds to us from this offering
for working capital and other general corporate purposes. Additionally, we may
choose to expand our current business through acquisitions of, or investments
in, other businesses, products or technologies, using cash or shares of our
common stock. However, we have no commitments with respect to any such
acquisitions or investments at this time.
Pending the use of proceeds from this offering, we intend to invest the net
proceeds in short-term, interest-bearing, investment-grade securities. Our
management will have broad discretion in the application of the net proceeds
from this offering and investors will be relying on the judgment of our
management regarding the application of the proceeds.
The market for enterprise IT management solutions is fragmented, rapidly
evolving and highly competitive. We face competition from in-house solutions,
large integrated systems vendors and smaller companies with point solutions.
Our competitors vary in size and in the breadth and scope of the products and
services offered. Our primary competitors include BMC Software, Inc., CA,
Inc., Hewlett-Packard Company and International Business Machines Corporation,
all of which can bundle competing products and services with other software
offerings, or offer them at a low price as part of a larger sale. With the
introduction of new technologies, evolution of our product offerings and new
market entrants, we expect competition to intensify in the future.
The principal competitive factors in our industry include total cost of
ownership, product functionality, breadth of offerings, flexibility and
performance. We believe that we compete favorably with our competitors on each
of these factors. However, many of our primary competitors have greater name
recognition, longer operating histories, more established customer
relationships, larger marketing budgets and significantly greater resources
than we do.
Company Description
ServiceNow is a leading provider of cloud-based services to automate
enterprise information technology, or IT, operations. Our service includes a
suite of applications built on our proprietary platform that automates
workflow and integrates related business processes. We focus on transforming
enterprise IT by automating and standardizing business processes and
consolidating IT across the global enterprise. Organizations deploy our
service to create a single system of record for enterprise IT, to lower
operational costs and to enhance efficiency. Additionally, our customers use
our extensible platform to build custom applications for automating activities
unique to their business requirements.
We help transform IT organizations from reactive, manual and task-oriented, to
pro-active, automated and service-oriented organizations. Our on-demand
service enables organizations to define their IT strategy, design the systems
and infrastructure that will support that strategy, and implement, manage and
automate that infrastructure throughout its lifecycle. We provide a broad set
of integrated applications that are highly configurable and can be efficiently
implemented and upgraded. Further, our multi-instance architecture has proven
scalability for global enterprises, as well as advantages in security,
reliability and deployment location.
We offer our service under a Software-as-a-Service, or SaaS, business model.
Customers can rapidly deploy our service in a modular fashion, allowing them
to solve immediate business needs and access, configure and build new
applications as their requirements evolve. Our service, which is accessed
through an intuitive web-based interface, can be easily configured to adapt to
customer workflow and processes. Upgrades to our service are designed to be
efficient and compatible with configuration changes and applied with minimal
disruption to ongoing operations.
We have achieved significant growth in recent periods. A majority of our
revenues comes from large, global enterprise customers. Our total customers
grew 61% from 668 as of March 31, 2011 to 1,074 as of March 31, 2012. Our
customers operate in a wide variety of industries, including financial
services, consumer products, IT services, health care and technology. For the
fiscal years ended June 30, 2010 and 2011, our revenues grew 114% from $43.3
million to $92.6 million. We incurred a net loss of $29.7 million and
generated net income of $9.8 million for the fiscal years ended June 30, 2010
and 2011, respectively. For the six months ended December 31, 2010 and 2011,
our revenues grew 93% from $37.9 million to $73.4 million. We generated net
income of $4.8 million and incurred a net loss of $6.7 million for the six
months ended December 31, 2010 and 2011, respectively. For the three months
ended March 31, 2011 and 2012, our revenues grew 88% from $25.2 million to
$47.4 million. We generated net income of $3.0 million and incurred a net
loss of $5.6 million for the three months ended March 31, 2011 and 2012,
respectively.
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We were incorporated as Glidesoft, Inc. in California in June 2004 and changed
our name to Service-now.com in February 2006. In May 2012, we reincorporated
into Delaware as ServiceNow, Inc.
Our principal executive offices are located at 12225 El Camino Real, Suite 100,
San Diego, California 92130, and our telephone number is (858) 720-0477. Our
website address is www.service-now.com.
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