Investor Presenta,on Third Quarter ServiceNow All Rights Reserved 1

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2 FORWARD- LOOKING STATEMENTS, INDUSTRY AND MARKET DATA This presenta>on contains forward- looking statements that are based on our management s beliefs and assump>ons and on informa>on currently available to management. We intend for such forward- looking statements to be covered by the safe harbor provisions for forward- looking statements contained in the U.S. Private Securi>es Li>ga>on Reform Act of Forward- looking statements include informa>on concerning our possible or assumed strategy, future opera>ons, financing plans, opera>ng model, financial posi>on, future revenues, projected costs, compe>>ve posi>on, industry environment, poten>al growth opportuni>es, poten>al market opportuni>es, plans and objec>ves of management and the effects of compe>>on. Forward- looking statements include all statements that are not historical facts and can be iden>fied by terms such as an>cipates, believes, could, seeks, es>mates, expects, intends, may, plans, poten>al, predicts, projects, should, will, would or similar expressions and the nega>ves of those terms, although not all forward- looking statements contain these iden>fying words. Forward- looking statements involve known and unknown risks, uncertain>es and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward- looking statements. We cannot guarantee that we actually will achieve the plans, inten>ons, or expecta>ons disclosed in our forward- looking statements and you should not place undue reliance on our forward- looking statements. Forward- looking statements represent our management s beliefs and assump>ons only as of the date of this presenta>on. We undertake no obliga>on, and do not intend to update these forward- looking statements, to review or confirm analysts expecta>ons, or to provide interim reports or updates on the progress of the current financial quarter. Further informa>on on these and other factors that could affect our financial results are included our filings we make with the Securi>es and Exchange Commission, including those discussed in our most recent annual report on form 10- K. This presenta>on includes certain non- GAAP financial measures as defined by SEC rules. We have provided a reconcilia>on of those measures to the most directly comparable GAAP measures in the Appendix. We obtain industry and market data from our own internal es>mates and research, from industry and general publica>ons, and from research, surveys and studies conducted by third par>es. In many cases our internal es>mates are for product and market segments for which well- defined, third- party informa>on is not available. Our product and market segment defini>ons may be unique to us. Our internal es>mates are based on assump>ons made by us using publicly- available third- party informa>on, internal research and our industry experience. However, the data on which rely, and our assump>ons, involve approxima>ons, judgments about how to define and group product segments and markets, es>mates, and risks and uncertain>es, and are subject to change based on various factors, including those discussed in our most recent annual report on form 10- K. These and other factors could cause results to differ materially from those expressed in, or implied by, the es>mates made by third- par>es and by us. In a number of product segments and markets our product offerings have only recently been introduced, and we do not have an opera>ng history establishing that our products will successfully compete in these product and market segments or successfully address the breadth and size of the market opportunity stated or implied by the industry and market data in this presenta>on. The informa>on in this presenta>on on new products, features, or func>onali>es is intended to outline ServiceNow s general product direc>on and should not be included in making a purchasing decision. Such informa>on is for informa>onal purposes only and may not be incorporated into any contract. The informa>on on new products is not a commitment, promise, or legal obliga>on to deliver any material, code or func>onality. The development, release, and >ming of any features or func>onality described for our products remains at ServiceNow s sole discre>on ServiceNow All Rights Reserved 2

3 The Enterprise IT Cloud Company Enterprise IT Cloud NYSE: NOW Strong Revenue & Growth Cloud- based Service that Modernizes and Transforms Enterprise IT 2,500+ Enterprise Customers 2,600+ Global Employees $610M Trailing 12- Month Revenue *$677M to $679M Highly Secure and Available Enterprise Cloud SaaS Business Model Major Sites San Diego, Silicon Valley, Seacle, Amsterdam, London, Sydney, Israel $425M $485M $244M $128M $13M $28M $64M FY08 FY09 FY10 FY11 FY12 FY13 FY14 *Expected 2014 Revenues 2014 ServiceNow All Rights Reserved 3

4 ServiceNow Addresses an Es,mated $45B Market Opportunity Business Management $9B SMB Service Management $1B Enterprise Service Management $25B IT Service Management IT Opera,ons Management $10B 2014 ServiceNow All Rights Reserved 4

5 ServiceNow Addresses an Es,mated $45B Market Opportunity Business Management Market Size: Project and Pornolio Management (1) $2B + App Development (2) $3B = Total Project Pornolio Suite $5B IT GRC (3) $1B + Vendor Management (5) $1B = Total IT Business Management Suite $2B Analy>c Apps and Performance Management (1) Total Performance Analy>cs ITOM Market Size: (1) Config Mgmt (Config Auto) $4B + Avail & Perform (Event) $3B + Other ITOM (Cloud Prov) $2B + Workload & IT Auto (Orch) $1B = Total ITOM Market Size (10) $10B $2B $2B = Total Business Management Market Size (10) (11) $9B SMB Service Mgmt Market Size: Addressable Customers (4) 63,202 Avg Revenue / Customer (5) $15K = Total SMB Market Size (11) $1B Configura,on Automa,on and Discovery $4B Event Management $3B IT Service Management $6B Cloud Provisioning $2B Orchestra,on Core $1B Project Por]olio Suite $5B HR $1B Facili,es $1B Express $1B CreateNOW $16B Field Service $1B IT Business Mgmt Suite $2B Perform Analy,cs $2B Enterprise Service Management Market Size: ServiceNOW 3Q14 Run- Rate Rev $712M Customer Penetra>on 11.5% Customer Satura>on (5) 25% = Total ESM Market Size (11) $25B Customer Count 2,514 Addressable Customers (6) 21,808 = Customer Penetra>on 11.5% ServiceNOW 2Q14 Run- Rate Rev $712M x ITSM Revenue Mix (5) 70% = ITSM Annual Run- Rate Revenue $499M Customer Penetra>on 11.5% Customer Satura>on (5) 70% = Total ITSM Market Size (11) $6B Total Addressable Employees (6) 268M x HR Employee Ra>o (7) 1% x Monthly Price / Fulfiller $25 = Total HR SM Market Size (11) $1B Total Addressable Employees (6) 268M x Facili>es Employee Ra>o (8) 1% x Monthly Price / Fulfiller $25 = Total Facili,es SM Market Size (11) $1B Field Service Management (9) $1B = Total Field Service SM Market Size (10) $1B ESM Market $25B Less: ITSM Market ($6B) Less: HR SM Market ($1B) Less: Facili>es SM Market ($1B) Less: Field Service SM Market ($1B) = Total CreateNOW Market Size (11) $16B (1) Gartner Market Share : All Soqware Markets, Worldwide (6) CapIQ; Global companies with >1,000 employees and >$500MM in LTM revenue (enterprise) (2) Gartner Market Share : All Soqware Markets, Worldwide (includes requirements defini>on (7) Based on ServiceNow es>mate of 1 HR employee for every 100 employees 2014 ServiceNow All Rights Reserved management, tes>ng, and soqware change and configura>on management) (8) Based on ServiceNow s es>mate of 1 facili>es employee for every 100 employees (3) Forrester Market Overview: GRC Planorms (9) Gartner Magic Quadrant for Field Service Management 5 (4) CapIQ; Global companies with 100 to 1,000 employees and $100 to $500MM in revenue (SMB) (5) ServiceNow es>mate (10) Total es>mated market size derived from industry analyst es>mates (11) Total es>mated market size derived from ServiceNow es>mates

6 Global Enterprises from All Industries Rely on ServiceNow Construc>on Federal Financial Services Healthcare Higher Educa>on Insurance IT Services Manufacturing Media MSPs Oil and Gas Retail Services Technology 2014 ServiceNow All Rights Reserved 6

7 Modernizing and Transforming IT and the Enterprise Moderniza,on Cloud Delivery Model Built for the Internet Intui,ve Usability Simple to use for everyone in the enterprise Transforma,on Move to an IT Service Model Replace a help desk- centric approach with an ITIL- based service model and system for everyone in IT Consumerize Expose service workflow to requesters through intui>ve self- service Single System of Record Service, Opera>ons, and Business Management all on a single data model Automate Dis- intermediate service transac>ons with orchestra>on Extensible Pla]orm Extend and create custom apps Deliver Enterprise Services Expand the scope of service management to an enterprise discipline 2014 ServiceNow All Rights Reserved 7

8 Product Por]olio BUSINESS MANAGEMENT Governance Vendor Resource Cost Demand Project Analy>cs Service Providers Departments SERVICE MANAGEMENT Release Pass Reset Problem Incident CMDB Catalog Change Field Svc Asset HR Facili>es OPERATIONS MANAGEMENT APPLICATION DEVELOPMENT Discovery Config Auto Orchestra>on Svc Map Cloud Mgmt Event Professional SDLC App Creator Service Creator Creators Ci>zen Creators SERVICE AUTOMATION PLATFORM Single Architecture Shared Resources Single Data Model Custom App Dev 2014 ServiceNow All Rights Reserved 8

9 Enterprise IT Service Model Internal Providers Customer Support Marke>ng Human Resources Informa,on Technology Finance Facili>es Legal REQUESTER Service Taxonomy Service Experience Service Delivery Service Assurance Service Analy,cs PROVIDER Enterprise Service Management 2014 ServiceNow All Rights Reserved 9

10 Transforming Service Management into an Enterprise Discipline Enterprise Service Management IT Service Automa,on HR Service Automa,on Facili,es Service Automa,on Enter Service Domains Here Service Automa,on Built by ServiceNow Built by ServiceNow Built by ServiceNow Built by Customer or Partner Any enterprise service or anything that requires a service model 2014 ServiceNow All Rights Reserved 10

11 Custom Applica,on Development EXTEND CREATE SHARE Pla]orm Capabili,es (Included in All Suites) Manage Resources CMDB On- Call Scheduling Service Providers Collaborate Intelligence Chat Business Service Maps Live Feed Repor>ng Skills Management Departments Surveys Time Cards Visualiza>ons Drive Eﬃciency Access Informa,on Design & Integrate Catalog Item Designer Coaching Loops Knowledge Content Management System Visual Task Boards Mobile Interface Forms Designer Service Catalog REST API Workﬂow SERVICE AUTOMATION PLATFORM Single Architecture 2014 ServiceNow All Rights Reserved Shared Resources Single Data Model Custom App Dev 11

12 Defining New Availability Standards Average Up,me % % % %* % %* %* %* Planned Maintenance Per Quarter 6 hours 68 hours 68 hours 14 hours 6.5 hours 65 hours 39 hours Total Availability % % % % % % % % Recovery Time Objec,ve (RTO) Recovery Point Objec,ve (RPO) 2 hours 12 hours 12 hours Not Published Not Published Not Published Not Published 1 hour 4 hours 1 hour Not Published Not Published Not Published Not Published Data Center Loca,ons Redundant Pair US Canada Europe Switzerland Australia Asia Brazil US- FISMA US Japan US Europe US US Europe Japan Brazil US- FISMA US Europe US *SLA up>me. Actuals not published 2014 ServiceNow All Rights Reserved 12

13 Growth Formula = New Logos + Upsells + Renewals LAND EXPAND RETAIN Net New Customer Adds 2,195 1,900 2, , , % 36% 34% 33% 35% 97% 96% 97% 98% 98% Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Cumula,ve Customers Including Net Adds (1) Upsells as % of Total ACV (2) Customer Renewal Rate (3) 1. Each subsidiary that has contracted for a separate produc>on instance is counted as a customer. 2. Upsell rate is calculated as the annual contract value of upsells during the period, net of any decreases in annual contract value of renewals during the 2014 ServiceNow All Rights Reserved period, divided by our total annual contract value during the period. 3. Renewal rate calculated by subtrac>ng our acri>on rate from 100%. Our acri>on rate for a period is equal to the annual contract value from lost 13 customers, divided by the total annual contract value from all customers that renewed during the period and from all lost customers.

14 Trac,on Con,nues in Large Accounts Number of Customers with Total Annualized Contract Value > $1M $227 $40 Average Revenue Per Customer $262 $249 $238 $45 $43 $42 $275 $ $187 $196 $206 $217 $228 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Subscription Professional Services & Other Note: Our average total annual revenues per customer, defined as quarterly revenue divided by the average number of customers in the quarter summed for the trailing four quarters ServiceNow All Rights Reserved 14

15 Strong Growth in All Stages Of Customer Maturity Total Annual Contract Value By Cohort Growth Cohorts X 1.8X 2.3X Q3-14 Q1-14 Note: Chart reflects growth in total annual contract value over >me, inclusive of losses, for the group of customers that joined ServiceNow in each respec>ve year. Growth factors represent increases in total annual contract value aqer the ini>al contract of each customer. 2.9X 2014 ServiceNow All Rights Reserved 15

16 Growth in Annual Contract Value Example Global 100 Customer Ini,al Deal = + 1,600 seats, $480K annual contract value 1 Upsell = + Discovery 4 Upsells = +6,100 seats, including a new subsidiary + Orchestra>on 6 Upsells = +800 seats, including a new subsidiary + New instance 2.7X 3.0X 1.2X Q ServiceNow All Rights Reserved 16

17 Cloud Infrastructure and Support Investments By Region Canada United States Brazil England Netherlands Singapore Hong Kong Australia Data Centers Major support centers 2014 ServiceNow All Rights Reserved 17

19 Subscrip,on Gross Margin 79% 78% 78% 78% 76% Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Note: All figures are calculated on a non- GAAP basis. See appendix for reconcilia>on of non- GAAP financial measures 2014 ServiceNow All Rights Reserved 19

20 Professional Services & Other Gross Margin PS & Other GM (Including Knowledge (1) ) 34% 13% 10% 13% 13% 7% Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Note: All figures are calculated on a non- GAAP basis. See appendix for reconcilia>on of non- GAAP financial measures. 1. Professional Services and Other revenues includes revenue from our Knowledge event in the second quarter of each year, with all related expenses in sales and marke>ng 2014 ServiceNow All Rights Reserved 20

21 High Revenue Visibility Deferred Revenue $MM $226 $267 $14 $308 $14 $329 $13 $351 $12 $15 $211 $253 $294 $316 $338 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Total Deferred Revenue Long Term Deferred Revenue Current Deferred Revenue 2014 ServiceNow All Rights Reserved 21

22 Walk to Long- Term Opera,ng Model Targets FY- 13A Q3-14A Q4-14G Long Term Subscrip,on Gross Margin 77% 79% ~78% Data Center Density, Improved Economies of Scale 81-83% PS & Other Gross Margin 16% 13% ~15% Produc,zed & Scalable Offerings, U,liza,on, Ramp Time 16-18% Total Gross Margin 67% 69% ~68% 74-76% S&M % of Revenue 41% 39% n/a Renewals > Percent of Bookings, Improved Mix of Ramped Reps, Marke,ng Program Spend 32-34% R&D % of Revenue 15% 16% n/a Con,nue to Invest in R&D, but at Slower Pace than Revenue Growth 11-13% G&A % of Revenue 11% 9% n/a Improved Economies of Scale 4-6% Opera,ng Margin 0% 6% 2% ~23% Note: All figures are calculated on a non- GAAP basis. See appendix for reconcilia>on of non- GAAP financial measures 2014 ServiceNow All Rights Reserved 22

24 Non- GAAP Reconcilia,on $MM 2012 Q1-13 Q2-13 Q3-13 Q Q1-14 Q2-14 Q3-14 GAAP Subscription Gross Profit (+) Subscription SBC (+) Subs Amort of Purchased Intangibles Non- GAAP Subscription Gross Profit % Subscription Gross Margin 71% 77% 77% 78% 78% 77% 76% 78% 79% GAAP Professional Services Gross Profit (+) Pro. Serv. SBC Non- GAAP Professional Services Gross Profit % Pro. Serv. Gross Margin 0% 8% 33% 7% 13% 16% 10% 34% 13% Total Non- GAAP Gross Profit % Gross Margin 60% 65% 68% 66% 67% 67% 66% 69% 69% GAAP Sales and Marketing (- ) Sales and Marketing SBC (- ) Sales and Marketing Amort of Purchased Intangibles Non- GAAP Sales and Marketing % of Revenue 38% 40% 46% 37% 40% 41% 43% 48% 39% GAAP Research and Development (- ) Research and Development SBC Non- GAAP Research and Development % of Revenue 13% 15% 14% 15% 15% 15% 17% 15% 16% GAAP General and Administrative (- ) General and Administrative SBC (- ) General and Administrative Acquisition Cost Non- GAAP General and Administrative % of Revenue 12% 12% 12% 11% 10% 11% 11% 10% 9% Non- GAAP Operating Margin - 4% - 1% - 4% 3% 2% 0% - 5% - 3% 6% 2014 ServiceNow All Rights Reserved 24