NEW YORK, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Staffbase today announced a product integration with ServiceNow to unify digital workflows with internal communications, helping organizations extend the power of the ServiceNow AI Platform across the entire workforce. The joint effort enables Staffbase to create better experiences and drive value for customers by surfacing critical ServiceNow workflows in a way that is intuitive, accessible, and engaging for all employees, including frontline and non-desk workers ...

Group 1 - ServiceNow, Inc. (NYSE: NOW) has seen a significant increase in deals, quadrupling year-over-year due to advancements in AI with its Pro Plus Now Assist [1] - The company is positioned for growth by focusing on sustainable, growth-driven investments that maximize shareholder equity [1] - The investment strategy emphasizes democratizing financial literacy and simplifying complex macroeconomic concepts for better understanding [1]

Core Insights - Investors should prioritize companies that demonstrate strong profitability after accounting for all expenses, favoring profitable firms over those with losses [1] - NVIDIA Corporation, Broadcom Inc., and ServiceNow, Inc. are identified as top investment picks for the second half of the year due to their high net income ratios [2] Net Income Ratio - The net income ratio is a critical measure of a company's profitability, indicating the percentage of net income relative to total sales revenues, with a higher ratio suggesting effective revenue generation and expense management [3] Screening Parameters - Additional criteria for identifying potential investment winners include: - Zacks Rank of 3 or lower, allowing only 'Strong Buys', 'Buys', and 'Holds' [4] - Trailing 12-month sales and net income growth exceeding industry averages [4] - Trailing 12-month net income ratio higher than industry benchmarks [5] - A strong buy percentage rating greater than 70% [5] - These parameters narrowed the stock universe from over 7,685 to just 11 candidates [5] Company Highlights - **NVIDIA Corporation (NVDA)**: - Provides solutions for graphics, computing, and networking globally - Achieved a 12-month net profit margin of 51.7% and holds a Zacks Rank of 3 [5][7] - **Broadcom Inc. (AVGO)**: - Develops semiconductor devices and infrastructure software solutions worldwide - Reports a 12-month net profit margin of 22.6% and also holds a Zacks Rank of 3 [6][7] - **ServiceNow, Inc. (NOW)**: - Offers cloud-based solutions for digital workflows across various regions - Has a 12-month net profit margin of 13.8% and maintains a Zacks Rank of 3 [8][7]

Core Viewpoint - ServiceNow has demonstrated exceptional execution and resilience against growth slowdown, positioning itself as a leader in the software industry with strong GAAP profitability, although analysts express concerns about the overall software sector outlook due to potential negative impacts from generative AI [1][3][15]. Financial Performance - In the most recent quarter, ServiceNow's subscription revenue grew by 22% year-over-year, reaching $3.113 billion, exceeding the highest forecast of $3.035 billion by 2.6% [6]. - The current remaining performance obligation (RPO) increased by 24.5% year-over-year, surpassing both the previous year and the last quarter's growth of 22% [7]. - The non-GAAP operating margin was reported at 29.5%, exceeding the expected 27%, while the company maintained profitability on a GAAP basis [8]. - The company ended the quarter with $10.7 billion in cash and investments against $1.5 billion in debt, indicating a strong net cash balance sheet [10]. Future Guidance - Management anticipates a 20.5% year-over-year growth in subscription revenue for Q3, slightly raising the full-year growth forecast to 20% [10]. - For Q3 2025, subscription revenues are projected between $3.260 billion and $3.265 billion, reflecting a growth of 20% to 20.5% [11]. - Full-year 2025 subscription revenue guidance is set at $12.775 billion to $12.795 billion, maintaining a growth rate of 20% [11]. Market Position and Valuation - ServiceNow's stock currently trades at a price-to-earnings ratio of approximately 55, with a projected P/E ratio of about 13 by 2034 [12]. - Analysts have noted that the company's growth expectations are more favorable compared to its peers, which appear to be reaching their peak [14]. - Despite the strong performance, the high valuation raises concerns about potential stock price declines, especially with the anticipated impact of generative AI on the software industry [15][16].

Core Insights - This earnings season, several companies are showcasing resilience by achieving solid performance despite macroeconomic challenges and tariff uncertainties [1] Group 1: MongoDB - MongoDB (MDB) reported strong first-quarter results for fiscal 2026, with BMO Capital initiating coverage with a buy rating and a price target of $280 [3][6] - The database market exceeds $100 billion annually, with MongoDB being a leader in the non-relational database segment, which is growing at approximately 20% year over year [4] - Analyst expectations indicate that MongoDB's cloud-based offering, Atlas, will sustain low- to mid-20% growth through fiscal 2027, with overall growth projected in the mid- to high-teens for fiscal 2027 [6] Group 2: ServiceNow - ServiceNow (NOW) exceeded second-quarter expectations and raised its full-year outlook, driven by increasing AI adoption, prompting TD Cowen to reaffirm a buy rating and raise the price target to $1,200 [8][12] - The company achieved a 21.5% growth in current remaining performing obligations, attributed to early renewals and AI strength in the enterprise business [9] - ServiceNow's generative AI suite, NOW Assist, has shown better-than-expected performance, indicating strong demand and deal sizes [11] Group 3: Varonis Systems - Varonis Systems (VRNS) reported solid second-quarter results for 2025, leading Baird to raise the price target to $63 while maintaining a buy rating [14] - The company achieved a "clean beat/raise" across key metrics, including annual recurring revenue (ARR) and subscription revenue, with improved full-year ARR guidance [15][16] - SaaS ARR represented approximately 69% of overall Q2 ARR, up from 61% in Q1, with expectations to reach an 82% SaaS ARR mix by the end of 2025 [17]

Market Overview - Salesforce and ServiceNow are major enterprise software vendors, each generating over $10 billion in annual revenue and possessing a market capitalization exceeding $200 billion [1] - Both companies were founded approximately 25 years ago, pioneering cloud-native CRM and ITSM systems respectively [1] Strategic Opportunity - The rise of SaaS provided an opportunity to create products that were 10 times better than existing solutions [2] - Incumbents struggled to adapt to cloud computing, giving startups a competitive advantage [2][3] - AI presents a similar opportunity for new companies to develop AI-native enterprise software [3] Technological Shift - Future enterprise software systems will integrate AI to enhance employee productivity and accuracy [4] - Incumbents may face challenges in rebuilding their products around AI, creating opportunities for startups [4]

The company looks poised to be an agentic AI winner.Share prices of ServiceNow (NOW -3.10%)jumped after the software company reported strong revenue growth and yet again raised its guidance due to strong artificial intelligence (AI) adoption. That said, the stock has struggled to gain traction this year, with its shares down about 7% as of this writing.Despite the stock's underperformance in 2025, it is still one of the best-performing stocks of the past decade, with its shares up nearly 1,200% during that ...

Core Insights - ServiceNow (NOW) and Salesforce (CRM) are leading platforms in workflow automation, utilizing cloud-based software and AI tools to enhance operational efficiency for enterprises [1][3] - The global workflow automation market is projected to grow from $23.77 billion in 2025 to $37.45 billion by 2030, with a CAGR of 9.52%, indicating strong demand for automation solutions [3] ServiceNow Highlights - ServiceNow is experiencing increased adoption of its workflows as enterprises enhance digital operations, automating processes across various departments [4] - In Q3 2025, ServiceNow closed 89 large deals, including 11 exceeding $5 million, with a year-over-year increase of 30% in clients spending over $20 million [5] - The introduction of the Core Business Suite in May 2025 has enhanced ServiceNow's capabilities, integrating AI to improve execution across departments [6] - Subscription revenues for Q3 2025 are projected between $3.26 billion and $3.265 billion, reflecting a year-over-year growth of 20%-20.5% [7] Salesforce Highlights - Salesforce's platform is widely adopted for integrating sales, service, marketing, and analytics workflows, with a focus on real-time data and AI [8] - In the first quarter, over half of Salesforce's top 100 deals included multiple clouds, with nearly 60% featuring both Data Cloud and AI [9] - Salesforce anticipates second-quarter sales between $10.11 billion and $10.16 billion, with Subscription and Support revenues expected to grow approximately 9.5% year-over-year [11] Valuation and Performance - Year-to-date, NOW shares have decreased by 12.5%, while CRM shares have declined by 24.2% [12] - NOW shares are trading at a forward Price/Sales ratio of 13.46X, significantly higher than CRM's 5.74X, indicating that both stocks are considered overvalued [15] - The Zacks Consensus Estimate for NOW's 2025 earnings is $16.79 per share, reflecting a 20.62% year-over-year increase, while CRM's fiscal 2026 earnings estimate is $11.30 per share, indicating a 10.78% increase [17] Competitive Positioning - ServiceNow is positioned favorably compared to Salesforce, benefiting from a strong portfolio and partnerships, while Salesforce faces challenges from competition and macroeconomic conditions [18][19]

Group 1 - Salesforce (CRM.US) and ServiceNow (NOW.US) are in talks to invest approximately $750 million in cloud service company Genesys Cloud Services, marking a rare instance of competitors in the enterprise software sector supporting the same company [1] - The total investment of $1.5 billion has been announced, with Genesys' valuation estimated at $15 billion [1] - The funds will be used to repurchase shares from some shareholders, while Genesys will continue to be controlled by Hellman & Friedman and Permira [1] Group 2 - Genesys utilizes artificial intelligence to automate customer service functions, including scheduling and forecasting tools to predict user needs [1] - The CEO of Genesys highlighted the growing momentum in agent-based AI and the importance of establishing close connections with customers for autonomous service experiences [1] - Genesys has a history of transactions, having been a subsidiary of Alcatel-Lucent until 2012 when Permira acquired it for $1.5 billion [1] Group 3 - Salesforce's venture capital arm led a funding round in 2021 that valued Genesys at $21 billion, with participation from ServiceNow, Zoom Video Communications, BlackRock, and D1 Capital Partners [2] - Genesys is actively seeking opportunities for an initial public offering (IPO) and has selected underwriters to advance its listing efforts [2] - ServiceNow and Salesforce have intensified their business collaborations this year, with Salesforce agreeing to acquire Informatica for $8 billion and ServiceNow announcing its largest acquisition to date of MoveWorks, an AI-driven startup [2]

Salesforce and ServiceNow are each in advanced talks to invest about $750 million apiece in Genesys Cloud Services https://t.co/msm0PgIcP9 ...