ServiceNow A/NZ revenue rises to $335M, but losses remain

ServiceNow A/NZ revenue rises to $335M, but losses remain

Managed to shrink loss from A$31 million to A$30 million.

Credit: ServiceNow

Enterprise software vendor ServiceNow has seen its Australia and New Zealand revenue rise by almost a third, but barely put a dent in its overall loss. 

For the year ended 31 December 2020, the company posted revenue of a rounded A$335 million, a 31 per cent rise on the previous year’s A$256 million. 

The year also ended with a A$30 million loss, a 6 per cent fall from the previous corresponding period’s A$31 million. 

One of ServiceNow's biggest costs came from its A$151 million "distributor fee" it paid to the parent company in The Netherlands in 2020, A$54 million more than that paid in 2019.

The year saw ServiceNow’s cost of providing services rise by 37 per cent from A$186 million to A$255 million, while employee benefits also increased by almost 20 per cent from A$100 million to A$119 million.  

The company’s financial report, posted to the Australian Securities and Investments Commission (ASIC), revealed that the company paid A$2 million in income tax, A$300,000 less than the previous year. 

Broken down, the figures revealed a spike in revenue from ServiceNow’s service fees — or server management fees — which rose by 43 per cent from A$20 million to A$29 million. 

Its broader subscription services, which takes the lion’s share of total revenue, increased by almost a third, from A$220 million to A$290 million. 

Meanwhile, professional services and other revenue rose by just 2.1 per cent to A$15 million. 

During the 2020 financial year, ServiceNow signed partnerships with Accenture and Vonage. It also introduced a raft of expansions to its partner programs and solutions, including a new partner marketplace, a new app framework and a new “success methodology” for partners to draw upon. 

“In 2020, ServiceNow Australia continued its rapid growth in line with our global results, despite the macroeconomic headwinds during the year," a company spokesperson said. "We were proud to support organisations including Australia Post, NSW Health and TransGrid as they embraced digital workflows to transform their operations. We continue to focus on our customers’ success as we support their digital transformation efforts and new ways of working."

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