- ServiceNow has been one of the fastest growing service management solution providers. From 2009-2013, revenue grew at a CAGR of 116.5%.
- The company has significantly outpaced the ITSM industry's growth and should continue to perform well. Yet, ServiceNow won't be able to significantly outpace the industry due to their recent success.
- One of the major issues with ServiceNow's current valuation has been the company's limited addressable market. However, management has been expanding into new markets.
- The company's recent expansion efforts have shown early signs of success. Additionally, the expansion should help maintain a high level of growth.
- However, investors have priced in a significant amount of growth. Investors' high expectations have limited the potential upside but the stock isn't a good short due to no near-term catalyst.