ServiceNow buoyant about growth despite economic headwinds

Workflow automation provider ServiceNow said on Wednesday that it remained optimistic about growth for the rest of the year, despite an uncertain macroeconomic environment, hoping that the situation would in fact boost demand for its offerings.

“As you know, they (enterprises) are either not hiring, they’re laying people, and they have to do more with less. We’re built for that,” said Bill McDermott, CEO of ServiceNow, on a call with analysts to discuss the company’s third quarter earnings.

“They need the computers and the platforms to do the work so that people can have a more pleasant experience on the employee side … we take care of that,” McDermott said, according to a Motley Fool transcript

Although the company is not immune to the macroeconomic environment, its sales team is preparing for uncertainties by doubling down on staying closer to the customer to understand their needs, added company CFO Gina Mastantuono.

In fact, Mastantuono said the company will continue to hire for the rest of the year, in contrast to some large technology companies—such as Google, Oracle and Microsoft—who are laying off large numbers of employees.

“ServiceNow is hiring and will continue to hire and we are investing for growth. So, we’re very focused on continuing to build our world-class, go-to-market organization,” Mastantuono said, adding that ServiceNow will also hire critical engineering staff.

ServiceNow reports solid Q3 results

ServiceNow reported strong quarterly results on Wednesday, with 25% year-over-year revenue growth supported by at least 69 deals worth more than $1 million each.

The company reported total revenue of $1.83 billion for the quarter, with subscription revenues accounting for $1.74 billion, an increase of 28.5% year-over-year, excluding the impact of changes in money

Several products including IT service management (ITSM), IT operations management (ITOM), Customer and Employee Workflows and Creator Workflows are among the top 20 deals signed by the company, McDermott added, pointing to the diversity of the portfolio of company’s product and increasing customer awareness.

“In Q3, ITSM and ITOM were both in 17 of our top 20 deals, with six deals each over $1 million. Security and risk is in 15 of the top 20 with five deals over $1 million,” McDermott said.

Customer and Employee Workflows were also part of 12 of the top 20 deals signed in the quarter in question, along with Creator Workflows, which featured in all of the top 20 deals, the CEO added.

The company reported that it had a total of 1,530 customers with more than $1 million in annual contract value at the end of September.

The number of customers paying more than $10 million in annual contract value grew 60% year‑over‑year at the end of September.

ServiceNow has announced a new training program

ServiceNow also introduced the RiseUp with ServiceNow program, which aims to train one million ServiceNow certified professionals by 2024.

As part of the program, the company will offer 600 free courses along with 18 job-related certification paths.

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