— Revenue of $32.2 million, an increase of 18% year-over-year —
— Subscription revenue of $27.5 million, an increase of 24% year-over-year–
ServiceMax, Inc., a leader in asset-centric, Field Service Management software, today announced financial results for its second quarter of fiscal year 2022, ended July 31, 2021.
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Neil Barua, Chief Executive Officer of ServiceMax commented, “I am incredibly proud of our Q2 results, and our strong subscription revenue growth reflects the increasing demand for cloud-native, asset-centric Field Service solutions that we see from our new and existing customers. The traction that ServiceMax is seeing in the market is a testament to our vision and ability to execute, furthering an already proven track-record in our space. We’re excited to continue this momentum.
“ServiceMax’s leadership continues to be recognized by industry analysts, and we were named a Leader in the Gartner Magic Quadrant for Field Service Management for the sixth consecutive year. The planned acquisition of LiquidFrameworks, as well as our ongoing product innovation, continues to create a compelling value proposition for new and existing customers looking to transform their Field Service operations.
“Looking forward, we remain excited about the prospects for the Company as we aim to complete a business combination with Pathfinder Acquisition Corporation in the second half of our fiscal year, through which ServiceMax is expected to become a publicly traded company, further enhancing our ability to deliver on what we see as an increasingly attractive market demand.”
Second Quarter Fiscal Year 2022 Financial Highlights
- Total Revenue: Total revenue was $32.2 million during the second quarter of fiscal 2022, representing an increase of 18% year-over-year, compared to $27.2 million during the second quarter of fiscal 2021. Excluding the impact of purchase accounting for fiscal 2021, total revenue increased 17% year-over-year.
- Subscription Revenue: Subscription revenue was $27.5 million during the second quarter of fiscal 2022, representing an increase of 24% year-over-year, compared to $22.1 million during the second quarter of fiscal 2021. Excluding the impact of purchase accounting for fiscal 2021, subscription revenue increased 22% year-over-year.
- Operating Results: Loss from operations was $13.9 million during the second quarter of fiscal 2022, compared to $14.4 million during the second quarter of fiscal 2021. Non-GAAP loss from operations was $2.5 million during the second quarter of fiscal 2022, compared to $4.0 million during the second quarter of fiscal 2021.
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Recent Business Highlights
- Signed new deal with a leading equipment rentals company serving construction, industrial, energy, infrastructure, and government. This deal provides more than 8,000 ServiceMax licenses to enable improved asset visibility, cost reduction and increased revenues.
- Signed new deal with leading provider of medical diagnostic imaging and healthcare information technology. For this customer, ServiceMax is enabling a transition to a cloud-based solution with visibility into contracts, warranties, and entitlements to stop/reduce contract leakage around service and parts.
- Signed additional customer wins and expansions across a variety of industries including a threat detection and security screening technologies provider, a pharmaceutical and medical device company, an industrial IoT solutions provider, a flight simulation company, and a technology company focused on imaging for business.
- Announced a definitive agreement to acquire LiquidFrameworks, advancing ServiceMax’s Field Service Management capabilities in the energy sector.
- Named a Leader in the Gartner Magic Quadrant for Field Service Management for the 6th consecutive year based on the Company’s completeness of vision and ability to execute.
- Named Sophie Ames as Chief Human Resources Officer and appointed two new members to the Company’s Board of Directors: Felicia Alvaro, the Independent Director and Audit Committee Chair of Cornerstone on Demand; and Callie Field, the Executive Vice President and Chief Customer Experience Officer for T-Mobile.
Financial Outlook
ServiceMax is reiterating guidance for its fiscal year 2022 ending January 31, 2022, as follows (in millions):
|
FY2022 Guidance |
Year-over-year increase |
|
|
Total Revenue |
$130 million |
19% |
|
Subscription Revenue |
$112 million |
22% |
|
Non-GAAP Operating Results |
$(22) million |
Business Combination Transaction
On July 15, 2021, ServiceMax entered into a business combination agreement with Pathfinder Acquisition Corp. (Nasdaq: PFDR) (“Pathfinder”), a publicly traded special purpose acquisition company co-sponsored by affiliates of HGGC and Industry Ventures, which was amended and restated on August 12. The transaction is expected to close in the fourth quarter of 2021. The transaction is expected to deliver approximately $335 million of gross proceeds to the combined company, assuming no redemptions by Pathfinder shareholders, and including proceeds from a strategic common equity investment immediately prior to closing by leading software companies PTC Inc. and Salesforce Ventures at the same valuation as the business combination transaction. The closing of the transaction is expected to result in ServiceMax becoming a Nasdaq listed company under the ticker symbol “SMAX”.