ServiceSource is the global leader in service revenue management, partnering with technology-based companies to optimize maintenance, support and subscription revenue streams, while also improving customer relationships and loyalty. ServiceSource helps customers increase service revenue contract renewal rates, on average, by over 15 percentage points and, in some cases, up to 44 percentage points. ServiceSource delivers these results via a cloud-based solution, combining its Service Revenue Performance Suite(TM) of applications with dedicated service sales teams, leveraging a proprietary Service Revenue Intelligence Platform(TM) of transaction data, benchmarks and best practices. ServiceSource offers its service revenue management solution on a unique pay-for-performance business model that enables a success-driven, shared-risk

ServiceSource Announces Preliminary Third Quarter 2011 Financial Results

Exceeds guidance on revenue, adjusted EBITDA and EPS

Anticipates record third quarter revenue of greater than $49 million, exceeding previous guidance of $45 to $46 million

Expects third quarter adjusted EBITDA to exceed $2.5 million, compared to previous guidance of $500,000 to $1 million

Announces new industry-leading customers across technology and technology-related markets and continued expansion of its technology platform





ServiceSource (Nasdaq:SREV), a global leader in Service Revenue Management, announced preliminary financial results for the quarter ended September 30, 2011.

Based on preliminary information and subject to the quarterly accounting close and review procedures, the Company currently expects to report third quarter revenue above $49 million and adjusted EBITDA above $2.5 million. The Company also expects to report third quarter net income and non-GAAP earnings per share above its prior guidance range. These preliminary results exceed the Company's previous guidance for the third quarter of revenue of $45 to $46 million, adjusted EBITDA of $0.5 to $1.0 million, net loss of $4.5 to $5.0 million, and non-GAAP earnings per diluted share of approximately breakeven to a loss of one cent per share as provided on July 25, 2011. The Company ended the quarter with over $100 million of cash and short-term securities.

The Company also raised its full year 2011 revenue guidance, expecting revenue greater than $195 million, reflecting at least 28% year-over-year growth and which compares to previous guidance of $190 to $192 million for the year. The Company said that it expects to raise guidance for adjusted EBITDA, net income and non-GAAP earnings per share when it announces final results for the quarter.

"The combination of our ability to drive higher revenue, higher profits and improved customer satisfaction for our customers with a unique pay-for-performance model is a value proposition that resonates in any economic environment," said Mike Smerklo, Chairman and CEO of ServiceSource. "Over the last few years, we have made strategic investments in sales and marketing, research and development and operations to drive higher revenues and profits for our customers and to support our long-term growth. These investments have helped drive the record results we are previewing today and the higher renewal rates for our customers."

partnership. The Company is headquartered in San Francisco, and manages service revenue performance for customers across the globe in more than 35 languages.


More about SREV at www.servicesource.com.

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