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TheStreet Open House

ServiceNow CEO: 'We Have No Real Competitors'

NEW YORK ( TheStreet) -- ServiceNow ( NOW ) continues to sparkle in the eyes of Wall Street analysts and retains its reputation as a premier growth stock after the enterprise IT cloud company reported yet another quarter of revenue outperformance this week. This comes even as the company continues to deliberately operate at a loss.

The stock on average is garnering an "outperform" rating on the Street in a tally of more than a dozen analysts covering ServiceNow. Following its latest earnings report, ServiceNow shares continued to stay on an upward trend, rising 6.47% to settle at $46.40 on more than three times its average daily volume Thursday, above both its 50-day and 200-day moving averages of $41.91 and $36.85, respectively.

On Wednesday, ServiceNow reported that its second-quarter revenue rose 80% to $102.2 million from a year ago after adding 138 new customers to bring its customer count to 1,778 globally and achieving a customer renewal rate of 94.2%. The company posted a net loss of 6 cents a share, the same as last year. Wall Street was looking for a loss of 5 cents a share on revenue of $95.18 million.

For fiscal 2013, the company expects revenue to fall in the range of $406 million to $410 million, representing year-over-year growth of between 67% and 68%.

"Our currency is not servers, routers and systems," CEO Frank Slootman said after the earnings call in an interview with TheStreet. "Our currency is work incidences, problems, changes, progress, task, request. That's our currency. We manage the work of IT, not the infrastructure of IT."

In the interview highlight that follows, Slootman explains why some of the largest industry participants can't seem to catch a break when it comes to challenging the specialized product, customer and asset acquisition strategies that ServiceNow has been employing since its inception into the New York Stock Exchange last year.

"Our customers are actually frustrated because it's tough to negotiate with a vendor who doesn't have much competition, you know," said Slootman.

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