Managed services News
Joseph F. Kovar
“ServiceNow is the only software company in the world that operates on the ‘rule of 60.’ So if you look at our bottom-line profitability and our top-line revenue growth, combined we’re right on the rule of 60. And no other company in the world, none, not one, including the hyperscalers , which runs on the rule of 60,” said ServiceNow CEO and newly crowned Chairman Bill McDermott.
Wednesday was a busy day for ServiceNow, the Santa Clara, Calif.-based workflow platform provider. It began with the introduction of RiseUp with ServiceNow, a new program introduced by the company to train and certify one million new ServiceNow experts who by 2024 will bring their skills to the company, its partners, and its customers.
ServiceNow also named CEO Bill McDermott Wednesday as the company’s new chairman, with former chairman and company founder Fred Luddy joining the board.
The company also reported a very healthy third fiscal quarter 2022 in which GAAP subscription revenue rose 28.5 percent year-over-year to $1.74 billion, total revenue rose 27.5 percent to $1.83 billion, the number of customers paying more than $10 million in actual cash value in the quarter grew 60 percent, and the renewal rate reached 98 percent. And on top of that, the company raised its year-over-year constant currency growth outlook to 28.5 percent, excluding what it called a 550-basis point headwind due to foreign exchange.
[Related: ServiceNow CEO Bill McDermott: ‘We’re In A Market Of One’]
ServiceNow stock rose 12 percent in after-hours trading Wednesday to $410.75.
McDermott, in an exclusive meeting with CRN, said he was excited to see ServiceNow beat both its top-line and bottom-line goals in the quarter, as well as follow-through on new innovations expected for remainder of 2022 and into 2023.
”[With our Tokyo release], we’re now making a bold move to security. Digital trust is a big deal. And think about encryption, data anonymization, security control, and all these things to protect critical business applications, think about that vault in one platform, integrating all the other solutions, but provides a version of the truth so that managers can quickly automate and take action on threats and fix them before they become serious.
There’s a lot going on at ServiceNow. Click through our slideshow to read the CRN interview.