ServiceNow exceeded Wall Street’s expectations and improved guidance, and CEO Bill McDermott announced that “we are just getting started”

ServiceNow performed well when it released its third-quarter results, which exceeded market expectations, and at the same time improved its guidance for the whole year. The workflow automation supplier also announced that in the third quarter it signed the largest ever transaction with the largest customer ever. CEO Bill McDermott is confident in the earnings call because Now Platform can help the company adapt well. The new COVID-19 economy.

ServiceNow also announced today that it has appointed a new chief talent office to replace Pat Wadors, who is about to leave the company to join the early company. Gabrielle Teldano will begin his new role in January and was most recently the chief operating officer of Keystone Strategy, but has 30 years of human resources and operational leadership experience.

In addition, Apple Music’s global creative director Larry Jackson (Larry Jackson) will join the ServiceNow board of directors.

In the third quarter results, the headline numbers are:

• Subscription revenue was US$1.09 billion, a year-on-year increase of 31%

• 41 transactions with net contract value exceeding USD 1 million in the new year

• There are a total of 1,012 customers with an annual contract value of more than $1 million

• The guidance for subscription revenue for the whole year was raised to between US$4.257 billion and US$4.262 billion, a year-on-year increase of 31% at a fixed exchange rate

In recent months, ServiceNow has launched a series of products on the Now platform to support companies that respond to the challenges posed by COVID-19. These include workplace management products, as well as business continuity and legal support.

However, the key message from CEO Bill McDermott this week after the earnings call is that ServiceNow is in a unique position to take advantage of the company’s growing demand for new employees and customer experience. Digital investment in the coming months. The enterprise workflow needs to be redesigned, which is the cornerstone of Now Platform’s proposition.

McDermott said:

Everyone is adapting to the expectations of new employees and customers. It’s all about people. Now, letting teams collaborate across the enterprise is more important than ever. The workplace of the future will be allocated. It is essential to manage complex digital workflows. Companies need to innovate without interruption. Obviously, speed has become a differentiating factor.

ServiceNow is leading this once-in-a-lifetime opportunity to make people’s jobs better. This is what we see. All value chains are splitting. They are being transformed into modern digital workflows throughout the enterprise. More than US$3 trillion has been invested in digital transformation programs. However, as IDC research shows, only 26% of the investment brings a substantial ROI.

Large-scale investment will not bring about huge changes at all. This has contributed to a revolution in the workflow. The missing link is integration. Systems, islands, departments and processes must be integrated into the entire cross-enterprise workflow. Now Platform releases this ROI by providing speed, agility and flexibility. The company needs it now.

At this point, ServiceNow has been positioning itself as a “platform platform” for many years, so that customers can use the Now platform to utilize the existing record system and redesign workflows and processes. McDermott added:

It enables companies to deliver experiences that employees and customers demand at scale. This is the function of the Now Platform (a single architecture and data model that serves the enterprise platform or all other platforms).

expand the range

Excitingly, McDermott detailed the details of the success of customers outside of ServiceNow and ITSM. ServiceNow has achieved early success in ITSM, but has since been seeking to expand to other procurement centers, claiming that “workflow is workflow” and that the platform can be expanded across the enterprise.

ITSM is still the cornerstone of ServiceNow’s business, but it now appears that this news is drawing the attention of buyers because the area has expanded the coverage of Now Platform.

McDermott said that in ServiceNow’s top 20 transactions in the third quarter, customers purchased three or more products. There is no doubt that in the top 20 deals, there is ITSM, but in the top 20 deals, 13 also include CSM (8 of which have a transaction value of more than 1 million US dollars).

Chief Financial Officer Gina Mastantuono also revealed that of the 41 transactions in the quarter with a value of more than $1 million, 9 were in contact with new customers. she says:

Despite the great uncertainty introduced by COVID, we were still able to obtain the new logo, which proves that our amazing products and our brand continue to resonate with the C-level suites.

McDermott also emphasized the success of government departments and said:

We won cooperation with Mount Sinai and the Federal Defense Information System Agency. Our client workflow continues to be a growth driver, with 13 of the top 20 deals including CSM, 8 of which have a value of more than $1 million. Our customer’s win in the third quarter is proof of how ServiceNow has become a corporate workflow standard. For example, the third quarter is the largest federal quarter in our history. Now, we have 9 federal clients with ACV amounts in excess of $10 million.

The transaction includes the U.S. Air Force, the U.S. Army and the U.S. Department of Veterans Affairs. In addition, we have won new clients through agencies such as the U.S. Senate and the Federal Claims Court. In our largest transaction ever, the Department of Veterans Affairs is modernizing its corporate service management and IT capabilities. They are using Now Platform to understand the operating status, availability and cost of their key business services in real time.

McDermott reiterated ServiceNow’s previous ambitions and hopes to achieve an annual operating speed of 10 billion U.S. dollars, and said that the company is still “focused and disciplined…[and] committed to”.

Finally, McDermott commented on the continued economic structural changes due to COVID-19 that have led to ServiceNow’s position in the market, McDermott added:

In many ways, we are just beginning. The unprecedented headwinds this year will only intensify the tailwinds of our digital transformation. We have the platform required by the enterprise, the workflow standard for enterprise transformation, the lack of integration of existing technology investment and the link to create a modern enterprise workflow.

Remember, every great experience has a great workflow. No matter what challenges the company faces, we will process it with workflow and use workflow as a verb. ServiceNow is strategically located to become the company that defines enterprise software in the 21st century. We will not slow down the pursuit of this goal. We can no longer be disappointed because of the strong performance this year.

I take

All evidence shows that although companies are cutting budgets in multiple areas to preserve cash during the pandemic, investments in strategic digital projects are accelerating. It seems that investment is mainly focused on the experience of customers and employees, because the company works hard for customers who make choices in a challenging economic era. ServiceNow is in a good position to take advantage of buyers who want to adjust their processes in pursuit of this agenda, but as always, execution will be key.