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Since I last covered ServiceNow (NYSE: NOW ) and allocated a Buy rating, the stock has increased by over 25% in price. I cautioned on its premium valuation at the time, but this was not too concerning to me, given the excellent management, strong market positioningOliver Rodzianko is an investment analyst specializing in the technology sector, with a focus on artificial intelligence, semiconductors, software, and renewable energy. He has earned a strong reputation on Seeking Alpha, where he is frequently fe ...

25 Oct 2024 CMB International Global Markets | Equity Research | Company Update ServiceNow (NOW US) Solid 3Q24 results; riding on GenAI tailwind ServiceNow announced 3Q24 results: total revenue increased by 22% YoY to US$2.80bn, 2% ahead of Bloomberg consensus estimate; non-GAAP net income was up by 29% YoY to US$775mn, 7% ahead of consensus estimate due to top-line outperformance and opex efficiencies. 3Q24 cRPO grew by 23.5% YoY at constant currency, which was 150bps above previous guidance, driven by the ...

Key TakeawaysServiceNow exceeded earnings and revenue estimates on soaring demand for its artificial intelligence platform.The enterprise software company raised its full-year subscription revenue guidance, and shares traded at an all-time high.ServiceNow also said former Google Cloud and Oracle executive Amit Zavery would become the new CPO and COO. Shares of ServiceNow (NOW) traded at an all-time high Thursday, a day after the software and IT services provider posted better-than-expected results and boost ...

ServiceNow (NOW) reported third-quarter 2024 adjusted earnings of $3.72 per share, which beat the Zacks Consensus Estimate by 7.51% and jumped 27.4% year over year.NOW’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, which is commendable.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues of $2.797 billion beat the consensus mark by 2.04% and increased 22.2% year over year. At constant currency (cc), revenues increased 22.5% year over year to $2.637 ...

ServiceNow's beat-and-raise quarter has investors feeling bullish.ServiceNow (NOW 5.99%) stock is jumping in Thursday's trading following the company's recently published quarterly report. The software specialist's share price was up 7.8% as of 10:45 a.m. ET.ServiceNow reported its third-quarter results after the market closed yesterday and posted sales and earnings for the period that beat Wall Street's expectations. The company recorded non-GAAP (adjusted) earnings per share of $3.72 on sales of $2.8 bill ...

SUN VALLEY, IDAHO - JULY 14: Bill McDermott, CEO of ServiceNow, walks to a morning session at the ... [+] Allen & Company Sun Valley Conference on July 14, 2023 in Sun Valley, Idaho. Every July, some of the world's most wealthy and powerful figures from the media, finance, technology and political spheres converge at the Sun Valley Resort for the exclusive weeklong conference. (Photo by Kevin Dietsch/Getty Images)Getty ImagesServiceNow stock has risen 33% so far this year. Following the company’s third quar ...

ServiceNow Inc NOW reported stronger-than-expected results for its third quarter after the market close on Wednesday.ServiceNow reported third-quarter revenue of $2.797 billion, beating the consensus estimate of $2.743 billion. The company reported third-quarter adjusted earnings of $3.72 per share, beating analyst estimates of $3.46 per share, according to Benzinga Pro."ServiceNow raised our full-year topline guidance on the strength of our Q3 results, once again going beyond expectations. This remarkable ...

I discussed ServiceNow’s (NYSE: NOW ) market expansion into mid-office and back-office platforms in my previous ‘Strong Buy’ thesis published in July 2024. With the launch of Xanadu & RaptorDB, ServiceNow has been enhancing their AI offerings and expanding into adjacent market such asMore than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche ...

Financial Data and Key Metrics - Subscription revenue growth was 22.5% at constant currency, 200 basis points above the high end of guidance [4] - Current RPO (cRPO) grew 23.5% at constant currency, 150 basis points above guidance [4] - Operating margin exceeded 31%, more than 150 basis points above guidance [4] - Free cash flow margin was 17%, up over 800 basis points year-over-year [22] - The company closed 96 deals greater than $1 million in net new ACV, including six new logos [20] - RPO ended the quarter at approximately $19.5 billion, representing 33% year-over-year constant currency growth [19] Business Line Performance - ITSM and ITOM were each in at least 15 of the top 20 deals, with double-digit deals over $1 million [4] - Security and Risk combined for 14 of the top 20 deals, with 11 deals over $1 million [5] - Customer workflows had 15 of the top 20 deals and 17 deals over $1 million [5] - Employee workflows were in 13 of the top 20 deals, with nine deals over $1 million [5] - Creative workflows were strong again, with 17 of the top 20 deals and 13 deals over $1 million [5] Market Performance - Technology, media, and telecom grew net new ACV over 100% year-over-year [19] - Retail and hospitality grew net new ACV over 80% year-over-year [19] - Healthcare, life sciences, and manufacturing also saw strength [19] - U.S. Federal demonstrated outstanding execution, with five deals over $5 million and two over $20 million [19] Company Strategy and Industry Competition - ServiceNow is positioned as the AI platform for business transformation, with Now Assist being the fastest-growing product [7] - The company launched Xanadu, its biggest Gen AI release, with over 350 net new innovations [7] - ServiceNow is expanding its TAM to $0.5 trillion through innovations like RaptorDB and workflow data fabric [12][13] - The company is focusing on Agentic AI, aiming to be the control point for AI deployment across enterprises [9] Management Commentary on Operating Environment and Future Outlook - The company sees AI as a once-in-a-generation technological shift, with IDC forecasting a $20 trillion global impact by 2030 [9] - Management highlighted the growing strategic relevance of ServiceNow as the platform for modernizing enterprise systems [6] - The company is confident in its ability to deliver consistent growth, driven by AI and workflow automation [17] Other Important Information - ServiceNow announced a partnership with NVIDIA to co-create a shared vision on Agentic AI [11] - The company launched RaptorDB, a new ultrafast database built for AI-first enterprises, which processes transactions 12 times faster and analytics 27 times faster [12] - ServiceNow University was created to skill 3 million learners in the next few years [14] Q&A Session Summary Question: Market environment and demand outlook [26] - The market is value-based, with companies focusing on platforms that deliver real GenAI use cases [26] - ServiceNow's pipelines are strong, and global events are oversubscribed, indicating high demand [27] Question: Incremental opportunity with RaptorDB and data platform [28] - RaptorDB offers an upsell opportunity across the entire installed base, with seamless integration and faster performance [28] - The workflow data fabric allows access to any data source, aligning it with automated workflows [29][30] Question: Headcount growth and OpEx investment [32] - The company is increasing headcount, particularly in sales and R&D, to capitalize on AI and workflow data fabric opportunities [33] - R&D headcount growth is consistent, reflecting the focus on innovation [33] Question: Elite-level execution and durability [35] - ServiceNow attributes its execution to hiring great people, clear planning, and overcommunication [36] - The company believes it is far from hitting its peak and continues to innovate [37] Question: AI bookings and investment in AI infrastructure [40] - AI bookings are ramping up, with significant investments in AI infrastructure, including partnerships with GPU providers [40] - The company sees AI as a key driver of future growth [41] Question: Federal business update [62] - The federal business is strong, with no impact from partner issues and significant growth in net new ACV [63] - GenAI is a top priority for federal agencies, with ServiceNow being the standard platform for digital transformation [63] Question: Customer upgrades from Standard to Pro [66] - The company is seeing an uptick in customers upgrading from Standard to Pro, driven by GenAI adoption [66] - RaptorDB is also driving upgrades due to its performance benefits [67] Question: Autonomous agents and technology advancements [69] - ServiceNow's autonomous agents are powered by RaptorDB, workflow data fabric, and NVIDIA's NIM advancements [69] - These technologies are already in use, with significant traction expected in Q4 [70] Question: C-level executives' view on AI budgets [74] - IT budgets are growing, with GenAI and workflow automation being top priorities [75] - ServiceNow is gaining share in the market, with potential for further investment from other departments [76] Question: Amit Zavery's role and pricing expertise [77] - Amit Zavery's expertise in packaging and pricing is expected to enhance ServiceNow's product strategy [78] - His focus will be on engineering leadership and driving new growth opportunities [79]