ServiceSource Announces Preliminary Third Quarter 2018 Financial Results and Revised Fiscal 2018 Outlook

Conference Call to Discuss Full Third Quarter 2018 Financial Results
and Business Outlook Scheduled on November 7, 2018 at 4:30 p.m. ET

DENVER–(BUSINESS WIRE)–$SREV–ServiceSource (NASDAQ: SREV) (the “Company”), a global leader in
outsourced inside sales, customer success and recurring revenue growth
and retention solutions, today announced preliminary financial results
for the quarter ended September 30, 2018 and updates to its fiscal 2018
revenue outlook.

“After a strong start to the year, several factors began to take shape
late in the third quarter that have impacted our financial results for
Q3 and our outlook for the balance of the year,” said Christopher M.
Carrington, CEO of ServiceSource. “While our forecasts for new logo
ramps and install base growth were generally in line across our
portfolio, as we closed the quarter we experienced unexpected churn and
softer end-user demand at several clients. The impact of these factors
offsets the positive progression we experienced across the remainder of
our business and alters our view for the balance of the year.”

The Company now expects third quarter revenue of approximately $57
million, compared to its previous guidance of $60 million to $61
million. Based on the preliminary third quarter 2018 results and the
Company’s current view of the fourth quarter, ServiceSource is also
revising its fiscal 2018 revenue outlook and now expects full-year
revenue of $238 million to $240 million. The Company anticipates a
meaningful portion of the revenue delta compared to expectations to flow
through the P&L. ServiceSource intends to provide updated full fiscal
2018 guidance when it reports completed financial results for the third
quarter 2018 on November 7, 2018, after market close.

Carrington continued, “As some of our clients adapt their go-to-market
models and customer engagement strategies, in select cases their
businesses are exposed to greater near-term volatility that impacts our
forecasting. We are implementing specific actions in response to these
challenges and other catalysts give us reason for sustained optimism. In
recent months we have attracted three new executive leaders to further
advance the Company, we have signed 12 new logos year-to-date, client
net promoter scores continue to improve, and we have a strong balance
sheet and liquidity profile. We look forward to providing additional
details on the actions we are taking and the progress we are making on
our earnings call in November.”

Third Quarter 2018 Financial Results Conference Call

ServiceSource also today announced that it will release its financial
results for the third quarter ended September 30, 2018 after market
close on November 7, 2018. ServiceSource will host a conference call at
2:30 p.m. Mountain Time (4:30 p.m. Eastern Time) that day to review
financial results and business outlook.

To access the call, please dial (877) 293-5486, or outside the U.S.
(914) 495-8592, at least five minutes prior to the 2:30 p.m. MT start
time. A live webcast of the call will also be available on the
ServiceSource Investor Relations website under Events and Presentations.
A replay of the webcast will also be available on the Company’s Investor
Relations website at http://ir.servicesource.com.

Forward-Looking Statements

This press release contains forward-looking statements, including
statements regarding our preliminary views regarding third quarter
financial results, our expectations for financial and operational
performance, including our revised 2018 outlook, whether our go-forward
model will produce anticipated benefits, and whether our improved
execution and emerging capabilities will translate into desired results.
These forward-looking statements are based on our current assumptions
and beliefs, and involve risks and uncertainties that could cause our
results to differ materially from our forward-looking statements. Those
risks and uncertainties include: potential revision to the preliminary
third quarter results, including as a result of the completion of our
financial closing procedures and review by independent auditors; a
decline in client renewals, the loss of one or more of our key clients
or the contraction in our revenue from one or more of our key clients,
in each case resulting in churn, or our clients not expanding their
relationships with us; the risk of problems implementing our
technologies or that our technologies will not meet customer
expectations; that the market for our solution is underdeveloped and may
not grow; errors in estimates as to the renewal rate improvements and/or
service revenue we can generate for our customers; changes in market
conditions that impact our ability to sell our solutions and/or generate
service revenue on our customers’ behalf; the possibility that our
estimates of service revenue, opportunity under management, and other
metrics may prove inaccurate; our ability to keep customer data and
other confidential information secure; our ability to adapt our solution
to changes in the market or new competition; problems encountered by our
clients in their business that may cause them to cancel or reduce their
business with us; our ability to achieve our expected benefits from
international expansion; economic or other adverse events or conditions
affecting the technology industry; our ability to protect our
intellectual property rights; the risk of claims that our offerings
infringe the intellectual property rights of others; and other risks and
uncertainties described more fully in our periodic reports filed with
the Securities and Exchange Commission, which can be obtained online at
the Commission’s website at http://www.sec.gov.
All forward-looking statements in this press release are based on
information currently available to us, and except as may be legally
required we assume no obligation to update these forward-looking
statements.

About ServiceSource

ServiceSource International, Inc. (NASDAQ:SREV) helps the world’s
leading brands grow closer to their customers. As a global leader in
outsourced inside sales, customer success and recurring revenue growth
and retention solutions, ServiceSource expands customer lifetime value
by helping companies to more efficiently and effectively find, convert,
grow and retain their B2B customer relationships. Trusted by global
market leaders in the cloud/XaaS, software, technology hardware, medical
device & diagnostic equipment and industrial IoT
sectors, ServiceSource sells, manages or renews $9 billion of revenue
annually on behalf of its clients. Leveraging a robust technology suite,
predictive data models and more than 3,000 revenue delivery
professionals speaking 45 languages, only ServiceSource brings to market
nearly 20 years of expertise and the ability to drive recurring revenue
growth to more than 170 countries. To learn more, visit http://www.servicesource.com.

Connect with ServiceSource:

http://www.facebook.com/ServiceSource

http://twitter.com/servicesource

http://www.linkedin.com/company/servicesource

http://www.youtube.com/user/ServiceSourceMKTG

Contacts

Investor Relations Contact for ServiceSource:
ServiceSource
International, Inc.
Chad Lyne
clyne@servicesource.com