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ServiceNow Inc.

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ServiceNow's adjusted loss widened in the first-quarter 2017. However, results showed that the company is rapidly penetrating the non-ITSM markets like customer service, human resource and security. The company is benefiting from growing adoption of its platform and tools in the Global 2000 (G2K) companies, as defined by Forbes. Its non-G2K customer base is also growing fast. We believe that the company’s expanding product portfolio, increasing multi-product customer base and strong renewal rate will help the company easily achieve its long-term revenue growth target of $4 billion. ServiceNow has outperformed the Zacks categorised IT services industry on a year-to-date basis. However, stiff competition in the non-ITSM market and modest growth at professional business service segment are major concerns. Moreover, the company is yet to report profit, which doesn’t augur well for investor confidence.

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