Even in the context of the global coronavirus pandemic, ServiceNow’s first quarter was strong, with sales increasing by 33% year-on-year. Guiding forecasts indicate that future revenue will achieve double-digit growth.
“The performance of the first quarter enhanced the strength of our portfolio,” Chief Executive Bill McDermott (Bill McDermott) told investors. “Listen: 18 of our top 20 deals with companies such as Merck, Humana, and Siemens include three or more products. This includes our second largest customer deal in history, which is with the US Signed by a leading Fortune 50 insurance company.”
Revenue in the first quarter was $1.04 billion, compared with $788.9 million in the same period last year. As of March 31, the company’s net income was 48.2 million US dollars, converted to 25 cents per share.
ServiceNow does warn that its customers may encounter economic downturns in the industry, so these uncertainties are expected to affect earnings for the rest of the year.
ServiceNow Chief Financial Officer Gina Mastantuono told investors: “We have provided some flexibility and expanded payment terms to some customers, and this is what I said in the most affected industries.” “So far. , It’s not yet an important part of our customer base. We don’t expect payment delays or adjusted payment terms to have a meaningful impact on revenue or billing.”
Although no ServiceNow customers have asked for help with payment, Mastantuono said the company will keep its free cash flow forecast unchanged in order to cooperate with the hard-hit industries.
“Even if I say this, please remember that ServiceNow is strong in all industries of the Fortune 500, and we have a strong understanding of our opportunities, our ongoing customer needs, our solutions and what we see in our business Strong channels are full of confidence,” McDermott said.
For the second quarter, ServiceNow expects subscription revenue to be between US$995 million and US$1 billion, a year-on-year increase of 29% to 30%. It is estimated that by 2020, at a fixed exchange rate, subscription revenue will be between US$4.12 billion and US$4.14 billion, a year-on-year increase of 28% to 29%.
McDermott said: “I’m talking to many CEOs and CEOs all over the world.” “What they are telling me is that in a crisis, they are focused on protecting revenue, ensuring business continuity and increasing productivity. They need an enterprise workflow platform that provides ROI in 12 months or less. The good news is that the rapid realization of value is the core advantage of ServiceNow. The advantage of ServiceNow is an architecture. A data model. A platform. This gives us strategic authority, making it a clear choice for all IT personnel, geographic locations, industry and role employees and all customers in the customer’s workflow.”
McDermott said that during the pandemic, companies including Accenture, Deloitte, DXC Technology, KPMG, etc. have stepped up to provide support for shared customers. He also said that ServiceNow has created a “Quick Start Manual for the Second Quarter” to enable the company to focus on priorities as it enters the next 90 days.
“It includes five key messages: quickly and effectively digitize the scale of operations; reduce technical debt, and there are many more to ensure the flexibility of key business operations; provide employees with the correct digital experience anywhere; and quickly create new workflows. These Each of the priorities leads to a great employee and customer experience.”
McDermott said the company’s information and solutions “resonate with every department and every region around the world.”
He said: “We will never stop working hard.” “We will not slow down.”
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