ServiceNow Conference Call - Q3 2024
ServiceNow Conference Call - Q3 2024
Main Takes and Thoughts
Hello, reader!
ServiceNow just released its Q3 2024 earnings. I listened to their Conference call and noted down some interesting takes and thoughts.
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Financial Performance
CEO, Bill McDermott, highlighted the company's "elite-level execution", outperforming in all key metrics and exceeding expectations.
Subscription revs +22.5% (ex-FX) 🟢
Current RPO hitting +23.5% 🟢
96 deals over $1 million and 2nd largest new logo deal in its history. 🟢
Growth driven by a strategic and targeted expansion across multiple industries, from tech and retail to healthcare and life sciences.
AI shift and a Seat at the Table with Industry Titans
They are ahead in the AI race, infusing AI across their solutions:
Launch of "Now Assist" and the AI platform, Xanadu have been a game-changer for enterprise customers with capabilities like analytics generation, custom skill development, and cross-platform integration with Microsoft’s CoPilot.
ServiceNow’s AI offerings are not just tech showcases—but practical, hands-on tools improving workflow efficiency.
44 customers already spending over $1 million annually on Now Assist alone.
McDermott made it clear:
“We are not just an enterprise software provider, we are becoming a strategic partner for C-suites aiming to future-proof operations and leap into AI-led transformations”
They signed a partnership with NVIDIA to develop out-of-the-box AI agents, providing ready-to-use solutions that businesses can adopt instantly — “like having extra hands that handle tedious, repetitive tasks, like an invisible IT assistant that never takes a break”.
Expanding into New Markets and Strategic Partnerships
They claim to be doubling its TAM to $0.5T by expanding into new product verticals and deepening existing solutions:
Launch of RaptorDB, an ultrafast database designed for AI-intensive workloads, customers like Amadeus are already onboard.
Strategic alliance with Databricks and Snowflake to “enable customers to turn data into instant, actionable insights on the Now platform”—no need for complex data transfers or manual handling.
🧠 Closing words and Thoughts
ServiceNow continues to demonstrate their strong and consistent execution. Their CEO defines its company as “elite”, thanks to its ability to develop ready-to-use, cutting-edge AI tools while growing their network of deeply invested enterprise customers and partners. They are positioning themselves not only as a software provider but as a leader in enterprise transformation. In McDermott’s words:
“ServiceNow is putting AI to work for people, making businesses more efficient, adaptive, and ready to thrive in an AI-first future.”
In summary, I think their performance signals once again not just growth. In such a competitive industry with high risks of disruption, they are consistently proving themselves as the frontrunners in enterprise software. As McDermott puts it:
“We’re not just in the race—we’re in the lead”.
That wraps it all up—hope you found it insightful and enjoyable!
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