ServiceSource International (NASDAQ:SREV) provides organization with the ability to manage their service revenue. Its tools help technology companies to increase the rate of renewal of maintenance, support, and subscription. ServiceSource provides its services in the cloud as a Software as a Service as well as having a dedicated service sales team. The company generates revenue by Pay-for-performance. In other words, it charges its customers based on the renewal of sales ServiceSource creates.
Because ServiceSource uses a pay-for-performance model, it is able to increase its user base relatively easily. Most customers have either little or no upfront costs to joining the organization. In addition, the company sells to companies across 30 different languages and is not restricted to a single user base.
The company's initial public offering of stock on the NASDAQ occurred on March 24, 2011. The company offered 11.9M shares each for $10. This was above the initial price range of $7.5-$9. The company raised a total of $119M through the offering. The lead underwriter of the deal were Morgan Stanley (MS) and Deutsche Bank AG (DB).
ServiceSource International total revenue for the full year 2010 was $152.9M. This was a 38% increase over the $110.7M total revenue for 2009. The company reported a net loss of $2.6M for 2010. This compares to a net income of $10.4M in 2009. This was due, in part, from a roughly 50% increase in sales and marketing expenses.