additional IT services. Upsells represented a third of ServiceNow’s annual contract value signed during the quarter, he said.
Providing IT services has moved beyond running a “Help Desk” for computer services. The current standard is a comprehensive approach known as the IT Information Library (ITIL), which refers to a collection of more than 30 books, each covering specific areas of IT service management. Once a customer’s IT group gets comfortable with ServiceNow’s system and capabilities, Slootman said, the company can usually add more service domains, such as human resources, facilities, legal case management, and travel.
For the second quarter that ends in June, CFO Michael Scarpelli told analysts that ServiceNow expects total revenue between $94 million and $96 million. Analysts were expecting $91.8 million.
ServiceNow’s employee ranks also are swelling, although it’s unclear where their numbers are increasing.
The company hired 192 employees during the first quarter, bringing ServiceNow’s total headcount to 1,269, according to Scarpelli. That’s 541 more than the same quarter in 2012.
“We expect our employee count to increase by over 200 employees in the second quarter of 2013 and [by] approximately 740 employees for the full year 2013,” Scarpelli said during the conference call.
When I asked ServiceNow by e-mail for a breakdown on the number of employees who work at the company’s headquarters in San Diego and the Bay Area, spokeswoman Liza Goldberg replied, “We don’t report employee breakdowns by region or office.”
ServiceNow’s local workforce—and whether the company plans to maintain its headquarters in San Diego—has been a matter of concern among some local business leaders since Slootman replaced many of ServiceNow’s top executives with a management team drawn largely from the Bay Area.
As a local executive who has worked with ServiceNow told me by e-mail, “The Bay Area group is continuing to maintain their primary residences in the Bay Area and they fly in every week to run the company and then fly out on Thursday/Friday. There were more than a few hard feelings from the local execs who built the company and right when it was taking off got their walking papers.”
In response to a question that asked if ServiceNow is relocating its headquarters to Northern California, Goldberg wrote, “ServiceNow’s headquarters is in San Diego and we continue to develop major corporate centers in Silicon Valley, Seattle and Amsterdam.”
