ServiceMax Revenue & Funding (2022)

ServiceMax disclosed an ARR approaching $150 million in November 2021, the most recent public figure at the time of the June 2022 interview. CEO Neil Barua confirmed the company was well above $100 million in ARR at the time of the interview and described the $150 million figure as the last public disclosure. The company's fiscal year ends in January, which caused the timing of its press releases to appear one year ahead of the calendar year.

ServiceMax served approximately 400 enterprise customers as of June 2022, all in the B2B large enterprise segment. Named customers included Philips Healthcare and Carrier. Philips Healthcare uses the platform to manage technicians who service medical equipment in hospitals and clinics. Carrier uses it to manage technicians servicing commercial HVAC units and cargo ship cooling systems.

Across those 400 customers, approximately 300,000 to 400,000 technicians were actively using ServiceMax, for an average of roughly 750 technicians per customer logo. Barua noted that the total addressable market is approximately 7.8 million field service technicians globally, the large majority of whom still rely on manual processes such as spreadsheets and clipboards rather than a competitor platform. Pricing details were not disclosed in the interview.

ServiceMax sells SaaS licenses to enterprise customers, with procurement handled by heads of service, IT, or CFOs rather than by individual technicians. The company does not operate as a marketplace. Licenses are sold to the enterprise customer, which then deploys the platform to its badge employees and, in some cases, to certified third-party service providers. Barua said that for complex asset service, approximately 80% of work is performed by badge employees and 20% by trained and certified third parties, both of whom use ServiceMax licenses procured by the enterprise.

Gross revenue retention was 95% as of 2022. Net dollar retention was in the 115% to 121% range, driven by expansion within existing accounts as large customers such as Philips Healthcare and Carrier moved from manual processes to the platform and added more technician seats and product modules. Barua described the company's new Engage product, which extends the platform to allow clinic or hospital staff to perform self-service repairs or remote collaboration with expert technicians, as a source of future upsell revenue not yet material at the time of the interview.

The company completed its largest acquisition, Liquid Frameworks, for $148 million in November 2021. Liquid Frameworks operates in the oil and gas, renewable energy, and industrial services space. The breakdown between cash, stock, and earnout was not disclosed. ServiceMax also acquired Zinc, a collaboration tool used internally by its engineers and sales team. Profitability details beyond the disclosure of operating profit and free cash flow positive status were not discussed.

ServiceMax employed approximately 580 people as of June 2022. Of that total, 250 were engineers. The company operated with a hybrid work model and used its internally developed Zinc collaboration tool to manage distributed teams.