ServiceMax Reports Preliminary Third Quarter Fiscal Year 2022 Results

Nov 23, 2021 • News • Future of field servcice • servicemax • Leadership and Strategy • GLOBAL

ServiceMax, Inc., a leader in asset-centric, Field Service Management software provides the following preliminary results for its fiscal Q3 2022 that ended on October 31, 2021.

Preliminary Third Quarter Fiscal Year 2022 Financial Highlights

Total Revenue: Total revenue was $33.2 million during the third quarter of fiscal 2022, representing an increase of 20% year-over-year. Excluding the impact of purchase accounting for the third quarter of fiscal 2021, total revenue increased 19% year-over-year.
Subscription Revenue: Subscription revenue was $28.7 million during the third quarter of fiscal 2022, representing an increase of 23% year-over-year. Excluding the impact of purchase accounting for the third quarter of fiscal 2021, subscription revenue increased 21% year-over-year.
Operating Results: Loss from operations was ($14.0) million during the third quarter of fiscal 2022, compared to ($15.8) million during the third quarter of fiscal 2021. Non-GAAP loss from operations was ($3.0) million during the third quarter of fiscal 2022, compared to ($5.6) million during the third quarter of fiscal 2021.

Business Highlights

Closed acquisition of LiquidFrameworks on November 1, 2021, which advances ServiceMax's Field Service Management capabilities in the energy sector ("LiquidFrameworks Acquisition"). The acquisition was financed with cash on hand and a new $100 million term loan.
Announced that the U.S. Securities and Exchange Commission (the "SEC") has declared effective Pathfinder Acquisition Corporation's ("Pathfinder") registration statement on Form S-4 (File No. 333-258769) relating to the previously announced proposed business combination of Pathfinder and ServiceMax (the "Business Combination"). The Extraordinary General Meeting of Pathfinder shareholders to approve the pending Business Combination between Pathfinder and ServiceMax, among other items, is scheduled for December 7, 2021, at 10:00 am ET.

The foregoing financial information for the quarter ended October 31, 2021 is unaudited and subject to quarter-end adjustments in connection with the completion of our customary financial closing procedures. Such changes could be material. ServiceMax will release full financial results for the three and nine months ended October 31, 2021, on December 9, 2021.

Financial Outlook

ServiceMax is providing financial guidance for its fourth quarter ending January 31, 2022, inclusive of the LiquidFrameworks Acquisition, as follows:

Total revenue between $38.5 million and $39.5 million, representing an increase of 37% year-over-year at midpoint of the range.
Subscription revenue between $34.0 million and $35.0 million, representing an increase of 42% year-over-year at midpoint of the range.
Non-GAAP operating loss between $(7) million and $(6) million.

ServiceMax is providing financial guidance for its fiscal year 2022 ending January 31, 2022, inclusive of the LiquidFrameworks Acquisition, as follows:

Total revenue between $134 million and $135 million, representing an increase of 23% year-over-year at midpoint of the range.
Subscription revenue between $116 and $117 million, representing an increase of 28% year-over-year at midpoint of the range.
Non-GAAP operating loss between ($18) million and ($17) million.

Financial Outlook

On July 15, 2021, ServiceMax entered into a business combination agreement with Pathfinder, a publicly traded special purpose acquisition company co-sponsored by affiliates of HGGC and Industry Ventures, which was amended and restated on August 12, 2021. The Business Combination is expected to close in the fourth quarter of calendar year 2021. The transaction is expected to deliver as much as $335 million of gross proceeds to the combined company, assuming no redemptions by Pathfinder shareholders, and including proceeds from a strategic common equity investment immediately prior to closing by leading software companies (PTC Inc. and Salesforce Ventures) at the same per share valuation as the Business Combination transaction. The closing of the Business Combination is expected to result in ServiceMax becoming a Nasdaq listed company under the ticker symbol "SMAX".