+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

ServiceNow Has Cured The Post-Facebook IPO Market

Jun 30, 2012, 04:15 IST

ServiceNowServiceNow employeesServiceNow had a phenomenal IPO today, soaring nearly 37 percent in its New York Stock Exchange stock debut.

Advertisement

ServiceNow planned to price shares between $15 to $17 but it opened at $23.16 and that was after raising its opening price to $18. Shares were selling for over $26 in after-hours trading. It sold 11.65 million shares, reports Reuters.

ServiceNow is the first technology company taken public by Morgan Stanley since Facebook and some are calling it the company that revived the IPO market.

But as sunny as all this is, this IPO is one more signal that we're in a bubble—or near to one. Its valuation is well over $2 billion, which is pretty amazing for a company that hasn't reached $100 million in revenue yet. In fiscal year 2011, ServiceNow reported $92.6 million in revenue, with a profit of $9.8 million. That compares to a loss of $29.7 million in 2010.

ServiceNow offers cloud apps that serve enterprise IT departments. Its claim to fame is a self-service app. When an employee has a problem with their PC, apps or the network, they can fire up ServiceNow and find the answer on their own. If that doesn't work, they can use the app to get IT on the line through a chat session.

Advertisement

ServiceNow is yet another successful enterprise IPO in 2012. Splunk and Infoblox had hot debuts before Facebook, too.

You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article