Investor Presentation

First Quarter 2015

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 FORWARD-LOOKING STATEMENTS, INDUSTRY AND MARKET DATA
This presentation contains “forward‐looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. We intend for such
forward‐looking statements to be covered by the safe harbor provisions for forward‐looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Forward‐looking
statements include information concerning our possible or assumed strategy, future operations, financing plans, operating model, financial position, future revenues, projected costs, competitive
position, industry environment, potential growth opportunities, potential market opportunities, plans and objectives of management and the effects of competition.
Forward‐looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates,” “believes,” “could,” “seeks,” “estimates,” “expects,” “intends,”
“may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or similar expressions and the negatives of those terms, although not all forward‐looking statements contain these
identifying words. Forward‐looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed or implied by the forward‐looking statements. We cannot guarantee that we actually will achieve the plans, intentions, or
expectations disclosed in our forward‐looking statements and you should not place undue reliance on our forward‐looking statements.
Forward-looking statements represent our management’s beliefs and assumptions only as of the date of this presentation. We undertake no obligation, and do not intend to update these
forward‐looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter. Further information on these and
other factors that could affect our financial results are included our filings we make with the Securities and Exchange Commission, including those discussed in our most recent Annual Report on form
10-K.
This presentation includes certain non‐GAAP financial measures as defined by SEC rules. We have provided a reconciliation of those measures to the most directly comparable GAAP measures in the
Appendix.
We obtain industry and market data from our own internal estimates and research, from industry and general publications, and from research, surveys and studies conducted by third parties. In many
cases our internal estimates are for product and market segments for which well-defined, third-party information is not available. Our product and market segment definitions may be unique to us. Our
internal estimates are based on assumptions made by us using publicly-available third-party information, internal research and our industry experience. However, the data on which rely, and our
assumptions, involve approximations, judgments about how to define and group product segments and markets, estimates, and risks and uncertainties, and are subject to change based on various
factors, including those discussed in our most recent annual report on form 10-K. These and other factors could cause results to differ materially from those expressed in, or implied by, the estimates
made by third-parties and by us. In a number of product segments and markets our product offerings have only recently been introduced, and we do not have an operating history establishing that our
products will successfully compete in these product and market segments or successfully address the breadth and size of the market opportunity stated or implied by the industry and market data in
this presentation.
The information in this presentation on new products, features, or functionalities is intended to outline ServiceNow’s general product direction and should not be included in making a purchasing
decision. Such information is for informational purposes only and may not be incorporated into any contract. The information on new products is not a commitment, promise, or legal obligation to
deliver any material, code or functionality. The development, release, and timing of any features or functionality described for our products remains at ServiceNow’s sole discretion.

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 The Enterprise Cloud Company
Enterprise Cloud NYSE: NOW Strong Revenue & Growth

Cloud-based Service that Modernizes 2,400+ 3,000+

and Transforms the Enterprise Enterprise Customers Global Employees * $970M-$1BN

Highly Secure and Available Enterprise Cloud

Major Sites
SaaS Business Model San Diego, Silicon Valley, Seattle, Amsterdam,
$683M
London, Sydney, Israel, India

$425M

$244M

$128M
$64M
$28M

FY09 FY10 FY11 FY12 FY13 FY14 FY15E

*Expected 2015 Revenues

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 ServiceNow Addresses an Estimated $45B Market Opportunity
Business Management
$9B

SMB Service Management $1B

Enterprise Service Management

$25B

IT Service
Management

IT Operations Management
$10B

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 Global Enterprises from All Industries Rely on ServiceNow

Construction Federal Financial Services Healthcare Higher Education Insurance IT Services Manufacturing Media MSPs Oil and Gas Retail Services Technology

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 Transform IT, Transform the Enterprise

Modernization Transformation
Cloud Delivery Model Move to an IT Service Model
Built for the Internet Replace a help desk-centric approach with an
ITIL-based service model and system for
everyone in IT

Intuitive Usability Consumerize

Simple to use for everyone in the enterprise Expose service workflow to requesters
through intuitive self-service

Single System of Record Automate

Service, Operations, and Business Management Dis-intermediate service transactions
all on a single data model with orchestration

Extensible Platform Deliver Enterprise Services

Extend and create custom apps Expand the scope of service management
to an enterprise discipline

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 Product Portfolio

BUSINESS MANAGEMENT
Governanc Vendor Financial Resource Demand Project Analytics
e

Service Providers SERVICE MANAGEMENT Departments

Legal Finance Field Svc IT Marketing HR Facilities

Asset Case Catalog Change CMDB Incident Knowledge Problem

OPERATIONS MANAGEMENT APPLICATION DEVELOPMENT

Discovery Orchestration Service Mapping Cloud Mgmt Event Professional SDLC Test App Creation Service Creator ‘Citizen’
Creators Creators

SERVICE AUTOMATION PLATFORM

Single Architecture Shared Resources Single Data Model Custom App Dev

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 IT Service Model
Internal Providers
Information
Customer Human Technology
Marketing Finance Facilities Legal
Support Resources

Service Service Service Service Service

REQUESTER Taxonomy Experience Delivery Assurance Analytics PROVIDER

Service Management for the Enterprise

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 Transforming Service Management into an Enterprise Discipline

Enterprise Service Management

IT HR Facilities Enter Service Domains Here

Service Automation Service Automation Service Automation Service Automation

Built by ServiceNow Built by ServiceNow Built by ServiceNow Built by Customer or Partner

Any enterprise service or anything
that requires a service model

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 Custom Application Development
ServiceNow Store
EXTEND CREATE SHARE ServiceNow Share
Platform Capabilities Custom App Showcase
(Included in All Suites)

Manage Resources Collaborate Intelligence

CMDB Chat Business Service Maps
Service Providers On-Call Scheduling Live Feed Reporting Departments

Skills Management Surveys

Time Cards Visualizations

Access Information Drive Efficiency Design & Integrate

Knowledge Coaching Loops Catalog Item Designer
Content Management System
Mobile Interface Visual Task Boards
Forms Designer
Service Catalog
REST API
Workflow

SERVICE AUTOMATION PLATFORM

Single Architecture Shared Resources Single Data Model Custom App Dev

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 Growth Formula = New Logos + Upsells + Renewals
LAND EXPAND RETAIN

Net New Customer Adds 45% 45% 97% 98% 98% 97% 97%
2,461 43%
2,347
114 40%
2,176 171
2,046 130
1,914 132 32%
106

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15

Cumulative Customers Including Net Adds Upsells as % of Total ACV(1) Customer Renewal Rate(2)

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1. Upsell rate is calculated as the annual contract value of upsells during the period, net of any decreases in annual contract value of renewals during the
period, divided by our total annual contract value during the period.
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2. Renewal rate calculated by subtracting our attrition rate from 100%. Our attrition rate for a period is equal to the annual contract value from lost
customers, divided by the total annual contract value from all customers that renewed during the period and from all lost customers.
 Average Contract Terms
New Customer Upsell Renewal

32.0 32.2 31.5

30.4 29.7
28.5
26.0 25.6 25.6 26.3
24.6 25.4
24.2 24.3
22.5

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15

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 Traction Continues in Large Accounts
Number of Customers with Total Annualized Contract Value > $1M Average Revenue Per Customer

$345
$331
168 $316
$300 $58
153 $284 $56
$54
$52
$49
127

111
96

$275 $287
$248 $262
$235

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15
Subscription Revenue per Customer PS & Other Rev Per Customer
Note: Our average total annual revenues per customer, defined as quarterly revenue divided by the average number of
customers in the quarter summed for the trailing four quarters.

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 Consistent Growth in All Stages Of Customer Maturity
Total Annual Contract Value By Cohort Annual
Growth

1.2X 0.3x
2015
2014 1.9X 0.5x
2013
2012 2.5X 0.5x
2011
2010 2.9X 0.5x

3.6X 0.5x
2010
2010 2011
2011 2012
2012 2013
2013 2014
2014 2015
2015

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Note: Chart reflects growth in total annual contract value over time, inclusive of losses, for the group of customers that joined ServiceNow in each respective year. 14
Growth factors represent increases in total annual contract value after the initial contract of each customer.
 Growth in Annual Contract Value
Example Global 100 Customer

Initial Deal = 1 Upsell = 4 Upsells = 6 Upsells =

+ 1,600 seats, $480K + Discovery +6,100 seats, including +800 seats, including a
annual contract value a new subsidiary new subsidiary
+ Orchestration + New instance
3.0X
2.7X

1.2X

Q4-10 2011 2012 2013

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 Cloud Infrastructure and Support Investments By Region

Canada
United States
Brazil
England
Netherlands
Singapore
Hong Kong
Australia

Data Centers
Major support centers

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 Investing in Growth – Headcount
Sub. Cost of Sales PS & Other Cost of Sales S&M R&D G&A

3,047
2,826
357
2,613
336
2,328 309
649
2,103 277 585
245 542
470
410
1,105
1,011
931
806
730

478 491
405 446
381

337 370 385 416 445

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15

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 Subscription Gross Margin
81%
80%
79%

78%

76%

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15

Note: All figures are calculated on a non-GAAP basis. See appendix for reconciliation of non-GAAP financial measures

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 Professional Services & Other Gross Margin
PS & Other GM (Including Knowledge(1)) 34%

16%
13% 13%
10%
9%

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15

Note: All figures are calculated on a non-GAAP basis. See appendix for reconciliation of non-GAAP financial measures.
1. Professional Services and Other revenues includes revenue from our Knowledge event in the second quarter of each year, with all related expenses in sales and marketing

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 High Revenue Visibility
Deferred Revenue
$M

$463

$422

$351
$329
$308

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15

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 Walk to Long-Term Operating Model Targets
FY-14A Q1-15A Q2-15G Long Term

Subscription Gross 81-83%

79% 81% ~80% Data Center Density, Improved Economies of Scale
Margin

PS & Other Gross Margin 19% 9% ~34% Productized & Scalable Offerings, Utilization, Ramp Time 16-18%

Total Gross Margin 69% 70% ~71% 74-76%

S&M % of Revenue 42% 41% n/a Renewals > Percent of Bookings, Improved Mix of Ramped Reps, 32-34%
Marketing Program Spend

R&D % of Revenue 15% 16% n/a Continue to Invest in R&D, 11-13%

but at Slower Pace than Revenue Growth

G&A % of Revenue 10% 9% n/a Improved Economies of Scale 4-6%

Operating Margin 2% 3% ~(2)% ~23%

Note: All figures are calculated on a non-GAAP basis. See appendix for reconciliation of non-GAAP financial measures
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 Appendix

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 Non-GAAP Reconciliation
ServiceNow Non-GAAP Reconciliation Non-GAAP Reconciliation
Investor Presentation Slide
Q4 FY14

$MM 2012 Q1-13 Q2-13 Q3-13 Q4-13 2013 Q1-14 Q2-14 Q3-14 Q4-14 2014 Q1-15
GAAP Subscription Gross Profit 141.3 53.2 60.2 69.6 78.9 261.9 86.2 99.5 112.4 126.4 424.5 137.5
(+) Subscription SBC 3.9 1.8 2.0 2.2 2.5 8.4 3.1 3.8 4.0 4.1 15.0 5.2
(+) Subs Amort of Purchased Intangibles 0.0 0.0 0.0 0.3 0.3 0.7 0.3 0.4 2.6 2.8 6.1 2.7
Non-GAAP Subscription Gross Profit 145.2 55.0 62.2 72.1 81.7 271.0 89.6 103.7 119.0 133.3 445.6 145.4
% Subscription Gross Margin 71% 77% 77% 78% 78% 77% 76% 78% 79% 80% 79% 81%
GAAP Professional Services Gross Profit -1.6 0.4 6.1 0.1 0.9 7.5 -0.2 8.3 0.2 0.9 9.3 -2.4
(+) Pro. Serv. SBC 1.6 0.8 1.0 1.2 1.7 4.7 2.4 3.2 3.6 3.9 13.1 5.2
Non-GAAP Professional Services Gross Profit 0.0 1.2 7.1 1.3 2.6 12.2 2.2 11.5 3.8 4.8 22.4 2.8
% Pro. Serv. Gross Margin 0% 8% 33% 7% 13% 16% 10% 34% 13% 16% 19% 9%
Total Non-GAAP Gross Profit 145.2 56.2 69.3 73.4 84.3 283.2 91.8 115.2 122.8 138.2 468.0 148.2
% Gross Margin 60% 65% 68% 66% 67% 67% 66% 69% 69% 70% 69% 70%
GAAP Sales and Marketing 103.9 38.2 52.3 47.3 57.3 195.2 69.4 91.9 84.0 95.8 341.1 110.0
(-) Sales and Marketing SBC 10.3 4.0 4.8 5.9 6.8 21.6 9.0 12.3 15.0 17.6 54.0 22.6
(-) Sales and Marketing Amort of Purchased Intangibles 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.5 0.1
Non-GAAP Sales and Marketing 93.6 34.2 47.5 41.3 50.4 173.5 60.3 79.5 68.8 78.0 286.6 87.3
% of Revenue 38% 40% 46% 37% 40% 41% 43% 48% 39% 39% 42% 41%
GAAP Research and Development 39.3 16.0 17.9 20.8 23.9 78.7 31.1 35.4 39.7 42.0 148.2 49.8
(-) Research and Development SBC 6.5 3.1 3.7 4.2 5.2 16.2 7.8 10.4 11.7 12.6 42.5 15.6
Non-GAAP Research and Development 32.8 12.9 14.2 16.6 18.7 62.5 23.3 25.0 28.0 29.4 105.7 34.2
% of Revenue 13% 15% 14% 15% 15% 15% 17% 15% 16% 15% 15% 16%
GAAP General and Administrative 34.1 12.2 15.3 16.1 18.0 61.8 21.6 24.9 23.4 26.3 96.2 29.4
(-) General and Administrative SBC 5.7 2.3 3.2 4.3 4.7 14.6 6.9 7.7 7.3 7.8 29.7 9.5
(-) General and Administrative Acquisition Cost 0.0 0.0 0.4 0.1 0.0 0.5 0.0 0.7 0.4 0.0 1.1 0.0
Non-GAAP General and Administrative 28.4 9.9 11.7 11.7 13.3 46.7 14.7 16.5 15.7 18.5 65.4 19.9
% of Revenue 12% 12% 11% 11% 11% 11% 11% 10% 9% 9% 10% 9%
Non-GAAP Operating Margin -4% -1% -4% 3% 2% 0% -5% -3% 6% 6% 2% 3%

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 Thank you

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