Revenues of $56.8 million, an increase of 93% compared to the second quarter of 2011, and an increase of 20% from the first quarter of 2012.

A GAAP net loss for the quarter of $8.7 million, or a loss of $0.32 per basic and diluted share, compared to GAAP net income of $2.0 million, or net income of $0.02 per diluted share, in the second quarter of 2011.

A Non-GAAP net loss for the quarter of $3.1 million, or a net loss of $0.12 per basic and diluted share, compared to non-GAAP net income of $2.9 million, or net income of $0.05 per diluted share, in the second quarter of 2011 (see the table entitled “Results of Operations GAAP to Non-GAAP Reconciliation” for a reconciliation of these GAAP and non-GAAP financial measures).

Deferred Revenue of $131.1 million, a 13% increase over the $115.8 million reported at the end of the prior quarter.

Billings were $72.1 million, a 23% increase over the $58.5 million reported in the previous quarter and a 98% increase over the $36.5 million in the same period last year.

Total revenues between $61 and $63 million, representing year-over-year growth between 78% and 84%. Our total third quarter revenues estimate consists of subscription revenues between $53 and $54 million and professional services and other revenues between $8 million and $9 million.

Subscription gross margin between 66% and 67%, professional services and other gross margin between (14%) and (19%), and overall gross margin between 55% and 56%.

Operating margin between (17%) and (19%).

A loss per basic and diluted share between $0.10 and $0.11 with weighted-average shares outstanding of approximately 121 million.

In June, ServiceNow became a public company and began trading on the New York Stock Exchange. On July 5, 2012, ServiceNow closed its initial public offering, issuing 10,350,000 shares of common stock at a price to the public of $18.00 per share, which included 1,350,000 shares of common stock issued upon the exercise in full of the underwriters’ over-allotment option. The offering generated net proceeds to the company of approximately $170 million.

In May, ServiceNow hosted Knowledge12, its annual user conference, in New Orleans with nearly 2,000 attendees to share best practices and to discover how ServiceNow can drive additional value in their business. This record number of attendees is up from nearly 1,000 last year.

In May, ServiceNow launched the ability for customers to take advantage of advanced high availability in its standard data centers. When advanced high availability is employed, customer production data will be replicated, in near real time, to a geographically separate data center. In the event of service disruption, the customer instance can be configured to fail over to an alternate data center.

In May, ServiceNow launched new services that enhance ServiceNow’s proven professional services methodology, StartNow. The methodology is built on best practices captured from hundreds of successful customer implementations and is now integrated into the ServiceNow platform itself. New offerings include ServiceNow Best Practice Workshops that align customer processes and technology with the ServiceNow platform and QuickStart packaged implementations that consolidate legacy systems as additional applications are deployed on the ServiceNow platform.

In May, ServiceNow announced a relationship with KPMG LLP to deliver service offerings to leverage the companies’ experience in cloud services and enterprise IT. KPMG will provide implementation support services, process design, process integration, and IT organizational change consulting for ServiceNow enterprise customers.

Revenues:

Subscription

Professional services and other

Total revenues

Cost of revenues ⁽¹⁾:

Subscription

Professional services and other

Total cost of revenues

Gross profit

Operating expenses ⁽¹⁾:

Sales and marketing

Research and development ⁽²⁾

General and administrative

Total operating expenses

Income (loss) from operations

Interest and other income, net

Income (loss) before provision for income taxes

Provision for (benefit from) income taxes

Net income (loss)

Net income (loss) per share attributable to common stockholders:

Basic

Diluted

Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:

Basic

Diluted

Includes total stock-based compensation expense for stock-based awards:

Cost of revenues:

Subscription

Professional services and other

Sales and marketing

Research and development

General and administrative

The Company recorded an out of period adjustment during the quarter ended June 30, 2012 to reflect the correction of an immaterial error related to software development costs of $0.7 million that was improperly capitalized during the quarter ended March 31, 2012. The correction of this error had no effect on the results of operations for the six months ended June 30, 2012.

ASSETS

Current assets:

Cash and cash equivalents

Restricted cash

Short-term investments

Accounts receivable

Current portion of deferred commissions

Prepaid expenses and other current assets

Current portion of deferred tax assets

Total current assets

Deferred commissions, less current portion

Property and equipment, net

Deferred tax asset, less current portion

Other assets

Total assets

LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT

Current liabilities:

Accounts payable

Accrued expenses and other current liabilities

Current portion of deferred revenue

Current portion of deferred rent

Total current liabilities

Deferred revenue, less current portion

Deferred rent, less current portion

Other long-term liabilities

Convertible preferred stock

Stockholders’ deficit

Total liabilities, convertible preferred stock and stockholders’ deficit

Cash flows from operating activities:

Net income (loss)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation

Amortization of net premium on short-term investments

Amortization of deferred commissions

Stock-based compensation

Tax benefit from exercise of stock options

Deferred income taxes

(Gain) Loss on disposal of property and equipment

Changes in operating assets and liabilities:

Accounts receivable

Deferred commissions

Prepaid expenses and other current assets

Other assets

Accounts payable

Accrued expenses and other current liabilities

Deferred rent

Deferred revenue

Other long-term liabilities

Net cash provided by operating activities

Cash flows from investing activities:

Purchases of property and equipment

Purchases of investments

Sale of investments

Restricted cash

Net cash used in investing activities

Cash flows from financing activities:

Proceeds from exercise of stock options

Proceeds from early exercise of stock options

Tax benefit from exercise of stock options

Net proceeds from issuance of common stock

Purchases of common stock and restricted stock from stockholders

Offering costs in connection with initial public offering

Net cash provided by (used in) financing activities

Foreign currency effect on cash

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Calculation of free cash flow (a non-GAAP measure):

Net cash provided by operating activities

Purchases of property and equipment

Free cash flow

Reconciliation of gross profit:

Revenues:

Subscription

Professional services and other

Total revenues

Cost of revenues ⁽¹⁾:

Subscription

Professional services and other

Total cost of revenues

Gross profit:

Subscription

Professional services and other

Total gross profit

Reconciliation of operating expenses:

Operating expenses ⁽¹⁾:

Sales and marketing

Research and development ⁽²⁾

General and administrative

Total operating expenses

Reconciliation of income loss from operations, provision for income taxes, net loss, net income loss per share, and pro forma net loss per share:

Loss from operations

Loss before provision for income taxes

Provision for income taxes ^{(1), (2)}

Net loss

Net loss per share attributable to common

Basic

Diluted

Weighted-average shares used to compute net

Basic

Diluted

Pro forma net loss per share attributable to common stockholders ⁽³⁾:

Basic and diluted

Pro forma weighted-average shares used to compute net loss per share attributable to common stockholders ⁽³⁾:

Basic and diluted

Adjustment includes stock-based compensation and the related tax effect.

Adjustment includes $0.7 million of research and development expenses that were capitalized related to software development costs incurred during the development of the Company’s feature release for its service offering and the related tax effect.

Pro forma adjustments include the sale of 10,350,000 shares of common stock in the Company’s initial public offering (IPO) and the conversion of all outstanding shares of its convertible preferred stock into an aggregate of 83,703,016 shares of common stock upon the closing of the IPO effective July 5, 2012.

Reconciliation of gross profit:

Revenues:

Subscription

Professional services and other

Total revenues

Cost of revenues ⁽¹⁾:

Subscription

Professional services and other

Total cost of revenues

Gross profit:

Subscription

Professional services and other

Total gross profit

Reconciliation of operating expenses:

Operating expenses ⁽¹⁾:

Sales and marketing

Research and development ⁽²⁾

General and administrative

Total operating expenses

Reconciliation of income (loss) from operations, provision for (benefit from) income taxes, net income (loss), net income (loss) per share, and pro forma net loss per share:

Income (loss) from operations

Income (loss) before provision for (benefit from) income taxes

Provision for income taxes ^{(1), (2)}

Net income (loss)

Net income (loss) per share attributable to common stockholders:

Basic

Diluted

Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:

Basic

Diluted

Pro forma net loss per share attributable to common stockholders ⁽³⁾:

Basic and diluted

Pro forma weighted-average shares used to compute net loss per share attributable to common stockholders ⁽³⁾: