An unnamed state government customer is relying on inContact (SAAS +10.3%) to provide a cloud-based contact center software solution that "includes contact center routing plus workforce optimization (WFO), CRM integration and connectivity." (PR)
Much as consumer Web plays are rising in sympathy with Facebook, enterprise cloud software names are sharply higher after cloud IT service desk software leader ServiceNow (NOW +14.3%) beat Q4 revenue estimates, provided very strong guidance, and reported its deferred revenue/backlog balance rose 59% Y/Y.
Salesforce (CRM +5.5%), Workday (WDAY +5.4%), NetSuite (N +6.2%), Textura (TXTR +9.8%), Cornerstone OnDemand (CSOD +3.6%), Jive Software (JIVE +3.4%), Ultimate Software (ULTI +3.4%), InContact (SAAS +3.9%), Tangoe (TNGO +3.7%), and LivePerson (LPSN +5.4%) are among the winners.
Baird has upgraded ServiceNow to Outperform, and several other firms have upped their PTs. Raymond James (Strong Buy) praises ServiceNow's efforts to expand into complementary markets such as HR automation, grow both its packaged and custom app sales, and to keep taking share from on-premise IT service desk vendors such as CA, BMC Software, H-P, and IBM.
On the CC (transcript), CEO Frank Slootman mentioned ServiceNow's installed base has grown to 2,060 accounts and 400 global 2000 customers. That's up from 1,900 and 360 three months earlier.
He added 80% of customers are now deploying custom apps, and that 20% of the annual contract value recorded in Q4 involved products other than tradition IT service desk licensing.
E-mail/social media marketing software firm Constant Contact (CTCT +4.5%) and cloud contact center software firm inContact (SAAS +7.4%) join the list of names rallying on hopes the Salesforce-ExactTarget deal will spur further M&A activity. Wells Fargo observes Salesforce (CRM -3.1%) stated the bidding for ExactTarget (ET) was competitive, which leads it to think SAP or IBM may be interested. Though wondering if Salesforce will be able to tie together its acquisitions, Om Malik thinks the deal makes sense on paper, given ExactTarget's e-mail-focused offerings add "more structure to Salesforce’s ambiguous sounding Marketing Cloud." Marc Benioff suggests Salesforce is now likely to "[take] a vacation" from M&A for 12-18 months.