ServiceSource Announces Record Revenue of $110 Million in 2009; Service Revenue Under Management Soars to $4 Billion
9 February 2010, (SAN FRANCISCO, CA) - ServiceSource, the global leader in technology-based service revenue solutions for high-tech and healthcare, announced today it achieved record revenue of $110 million in 2009. In the headwind of a global recession, the Company increased its revenue run rate by 32 percent over 2008, resulting in an increase of more than $1 billion of service revenue under management. In its strongest year of client additions and expansions, the Company increased its blue-chip client base by 35 percent.
In 2009, the overall market opportunity for ServiceSource accelerated due to the growing capabilities of the Company's proprietary managed services offerings, investments in its technology platform and applications suite, and growing repository of best practices and service revenue industry data, together solidifying ServiceSource's position as the market leader in technology-enabled service revenue solutions.
"To combat macro-economic contraction in 2009, technology and healthcare IT companies had to closely examine their maintenance and services revenue stream to improve profitability. After a thorough review, more blue-chip companies chose ServiceSource to drive increased revenue from maintenance renewal and support services contracts than ever before," said Mike Smerklo, CEO and Chairman of ServiceSource. "Our clients immediately benefit from the breadth and depth of the ServiceSource approach and industry knowledge as we identify the overall services revenue gap compared against industry benchmarks. We do this in a 100 percent pay for performance model.
Throughout 2009 ServiceSource continued to gain share of this estimated $150 billion global service revenue opportunity with the only complete solution for service revenue management. Through significant investments in its purpose-built technology platform to enable higher service renewals performance, ServiceSource continued to enhance and customize its integrated technology platform and services offerings for clients, their partners, and end customers. The platform consists of the industry's only renewals-specific CRM system to manage and track all renewal opportunities and data; a hosted client reporting and analytics application to allow clients to gain insight into real time performance; a powerful web-based channel portal solution that allows partners to have greater visibility into their renewals pipeline and close more service renewals; and a web-based renewals solution to allow end users to renew and pay online.
In a recent research report Pat Walravens, On Demand and Enterprise Software analyst at JMP, noted: "Many enterprises are currently up in arms about maintenance, enterprises are increasingly asking for discounts on maintenance, and there is a solution for vendors who successfully bring the value equation into their maintenance sales cycles. Our view is that ServiceSource provides a very interesting vantage point on trends in the overall maintenance business."
2009 ServiceSource highlights:
- 32% growth of dollars under management from current and new clients.
- Net new client additions increased 35%, significantly improving ServiceSource market share and opportunity for future growth.
- ServiceSource Executive Summits in North America and Europe brought together more than 130 senior executives representing over $65 billion in worldwide maintenance revenue from leading public and private technology-based hardware, software, and healthcare companies.
- ServiceSource led the creation of the Service Executive Industry Board (SEIB), an independent industry group comprised of leading executives committed to advancing best practices for the service revenue industry. Founding board members from Adobe, Avaya, EMC, GE Healthcare, Hitachi Data Systems, HP, IBM, ServiceSource, Siemens Healthcare and VMware are chartered to develop a common language, performance metrics and drivers for maintenance and services, as well as address issues impacting the industry and shape its future direction.
- Global expansion - In April 2009 ServiceSource opened a full-scale sales center in Singapore, today staffed with more than 60 employees and 10 clients to offer a complete solution to companies who have global operations and service offerings across the Asia Pacific region.
- Executive Leadership – Jeff Bizzack joined ServiceSource as President in March 2009 to drive the company's rapid growth and expansion. He oversees all client-facing activities across the customer lifecycle including sales, marketing, development and delivery. In addition, ServiceSource added Tony Zingale to its Board of Directors. Zingale has close to thirty years of experience building profitable, high growth information technology companies. He currently sits on the Boards of McAfee Software, Coverity, and Jive Software.