ServiceNow reports strong performance in the third quarter.
The company can now boast that more than 1,000 customers pay at least $1 million per year.
The company’s chief executive said that ServiceNow is the “standard” for digital transformation.
ServiceNow (NYSE:NOW), a service provider based on cloud platforms and solutions, whose shares are designed to help companies increase employee productivity, released an encouraging third-quarter report, and the stock rose more than 6% on Thursday.
Highlights of the third quarter
ServiceNow reports earnings per share of $1.21 in the third quarter and revenue of $1.14 billion. Both figures are better than Wall Street analysts’ expectations of $1.03 and $1.11 billion per share. The company reported very strong growth indicators, including subscription revenue, which increased 31% year-on-year to $1.091 billion.
The company recorded 41 annual new contracts with a net value of more than $1 million, and now a total of 1,012 customers have paid more than $1 million in fees.
standard
As Jim Cramer, co-host of CNBC “Alleys” points out, ServiceNow reports growth metrics reserved for small startups. But CEO Bill McDermott responded that ServiceNow’s market value has exceeded $100 billion, which clearly shows that ServiceNow’s platform has now become the “standard” for enterprise digital transformation.
Faced with the new reality brought about by the COVID 19 pandemic, many new ServiceNow customers are struggling to adapt to the needs of sudden changes in their businesses. For example, the company may not even meet new employees in person, which brings new challenges to their digital management.
ServiceNow also provides services to help companies better attract and meet the needs of their customer base.
He said: “The ServiceNow platform is the center of all of this.” “More and more developers are immediately developing new innovations on the instant platform.”
“The essence of all this.”
ServiceNow’s business has expanded to include federal government agencies such as the U.S. Department of Veterans Affairs, Air Force and Senate. This is in line with the management’s goal, which is “the essence of everything.”
Management wants to help the Air Force establish a vision for the future of space on its platform. The same applies to teachers who support teachers who feel safe in the classroom and serve as the official workflow partner of the National Basketball Association to ensure the smooth running of the playoffs.
He said: “Digital transformation is an opportunity for our generation before COVID.” “Now with COVID, it has accelerated and angered all the problems: system damage, operations in silos, impossible to complete in teams across different organizations Anyone who works”.
He said that even before COVID, workers for thousands of years did not want to work in office cubicles. After COVID, this situation will not change. Most employees will work digitally, but still expect the best working tools.
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