Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scor ...

First-of-its-kind "power skills" partnership offers the critical skills needed to succeed in tech The program blends soft skills courses like communication, collaboration and analytical thinking with the necessary technical competencies SAN FRANCISCO and SANTA CLARA, Calif., Jan. 30, 2024 (GLOBE NEWSWIRE) -- Udemy (NASDAQ:UDMY), a leading online skills marketplace and learning platform, and ServiceNow (NYSE:NOW), the leading digital workflow company making the world work better for everyone, today announced ...

ServiceNow (NYSE:NOW) stock is rising higher on Thursday as Wall Street analysts praise the cloud computing services company following its latest earnings report.Goldman Sachs, Bank of America Securities and UBS all reiterated “buy” ratings for NOW stock this morning. Goldman Sachs even increased its price target for the shares from $800 to $910.These are just a few of the analysts who weighed in on NOW stock this morning. Several others also reaffirmed positive ratings for the company following its earning ...

ServiceNow (NOW) reported fourth-quarter 2023 adjusted earnings of $3.11 per share, which beat the Zacks Consensus Estimate by 12.27% and jumped 36.4% year over year.Revenues of $2.44 billion beat the consensus mark by 1.67% and increased 25.6% year over year. At constant currency (cc), revenues increased 24%.Subscription revenues improved 27.2% year over year to $2.37 billion. At cc, subscription revenues increased 25.5% year over year.Professional services and other revenues decreased 10% year over year t ...

Financial Data and Key Metrics - Revenue for the current year is $8.7 billion, projected to grow to $10.575 billion next year, reflecting strong expansion rates [1] - Subscription revenue grew by 25.5% at constant currency, exceeding guidance by 200 basis points [32] - Current Remaining Performance Obligation (cRPO) grew by 23% at constant currency, also 200 basis points above guidance [32] - The company ended Q4 with $8.1 billion in cash and investments and repurchased 400,000 shares [13] - Free cash flow margin was 55%, up 250 basis points year-over-year, with total free cash flow for 2023 at $2.7 billion [91] Business Line Data and Key Metrics - Customer workflows crossed $1 billion in ACV in Q4, following Creator Workflows, which hit the same milestone in Q3 [90] - Gen AI products drove the largest net new ACV contribution in Q4, outperforming previous product family releases [12] - ITSM, ITOM, and ITAM each had double-digit deals over $1 million in Q4, with Security and Risk workflows also showing strong performance [24] - Employee workflows saw significant growth, with 80% year-over-year increase in net new ACV [53] Market Data and Key Metrics - Public sector growth remained strong, with key wins in the United States Army, US Postal Service, and Australian Department of Defense [6] - The company closed 168 deals greater than $1 million in net new ACV in Q4, a 33% increase year-over-year, including five deals over $10 million [12] - Energy and utilities, business and consumer services, and education sectors showed robust growth in Q4 [102] Company Strategy and Industry Competition - The company is positioning itself as the intelligent platform for end-to-end digital transformation, leveraging AI to drive growth [72] - ServiceNow is investing heavily in Gen AI, with early success in product adoption and customer demand [78] - The company is expanding its strategic partnerships, including with AWS and EY, to enhance AI capabilities and market reach [74][86] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong demand for Gen AI, with no price sensitivity due to the compelling business cases [3] - The company is optimistic about 2024, with AI expected to drive significant growth and transformation across industries [28] - ServiceNow is well-positioned to capitalize on the $3 trillion expected to be spent on AI between 2023 and 2027 [16] Other Important Information - The company has a renewal rate of 99%, demonstrating the strategic relevance of its platform [103] - ServiceNow is ranked as a leader in 14 separate reports by top analyst firms for its automation and AI capabilities [83] - The company is increasing hiring, particularly in R&D, to support innovation and Gen AI development [112] Q&A Session Summary Question: How is the demand environment for Gen AI impacting sales cycles and customer adoption? - The demand for Gen AI varies by industry, but the company is seeing faster sales cycles and strong customer pull, particularly in manufacturing and public sectors [138][118] - Gen AI products are driving significant net new ACV, with adoption curves steeper than previous product launches [180] Question: What is driving the outperformance in cRPO growth? - The cRPO growth beat was driven by a combination of net new ACV outperformance and early renewals, with Gen AI contributing significantly [175][149] Question: How is the company managing its sales capacity and efficiency? - Sales efficiency is improving, with fewer people needed to support quota-bearing sales reps due to increased productivity and automation [38][167] - The company is increasing hiring in R&D to drive innovation, while maintaining a balanced approach to sales and marketing headcount [166] Question: What are the expectations for Gen AI revenue contribution in 2024? - While it is still early days, Gen AI is expected to contribute to the $165 million increase in the 2024 revenue guidance, with adoption curves steeper than previous product launches [154][180] Question: How is the public sector adopting AI, and what is the trajectory? - Public sector adoption of AI is still in early stages, but the company expects significant growth in the second half of 2024, particularly in federal and state governments [197][221]

ServiceNow (NOW) reported $2.44 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 25.6%. EPS of $3.11 for the same period compares to $2.28 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $2.4 billion, representing a surprise of +1.68%. The company delivered an EPS surprise of +12.27%, with the consensus EPS estimate being $2.77.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...

Q4-23 Financial Highlights FY23 Financial Highlights | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------|--------------------------------------------------------------------|--------|-------|-----------------------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

ServiceNow Inc.’s stock bounced between slight gains and losses in after-hours trading Wednesday, after the company reported a quarterly bounce in revenue on strong subscription sales. “The gen-AI solutions we put into the marketplace in one quarter outsold any other product we put in the market,” ServiceNow NOW, +1.33% Chief Executive Bill McDermott said in an interview Wednesday. The software company is riding the momentum of a 27% jump in quarterly subscription sales to $2.37 billion, and an aggressiv ...

NEW YORK & SANTA CLARA, Calif.--(BUSINESS WIRE)--The EY organization and ServiceNow (NYSE: NOW), the leading digital workflow organizations making the world work better for everyone, have announced an expansion of their strategic alliance to provide solutions for generative AI (GenAI) compliance, governance and risk management. The EY organization will also use ServiceNow’s Now Assist GenAI capabilities to bring enhanced experiences to EY professionals and clients. These new AI solutions seek to amplify EY ...

The Now Platform and Its Capabilities - The Now Platform is a cloud-based solution with embedded AI and ML capabilities, helping global enterprises unify and digitize workflows across industries[12] - ServiceNow's workflow applications are organized into four primary areas: Technology, Customer and Industry, Employee, and Creator, each enhanced with AI and ML capabilities[13][14] - The Now Platform enables rapid business process automation across enterprise technology systems, addressing disconnected and siloed processes[15] - The Now Platform integrates generative AI features through Now Assist, offering enterprise-ready, domain-specific large language models (LLMs) to enhance productivity and agility[23] - Technology Workflows help companies unite IT, risk management, and security operations on a single platform, optimizing IT costs and reducing administrative tasks[25] - Customer and Industry Workflows reduce costs while delivering seamless customer experiences through connected digital workflows and AI-driven automation[35] - Now Assist for Customer Service Management (CSM) accelerates case resolution, reduces manual work, and improves customer satisfaction through generative AI[37] - Employee Workflows transform the employee experience by simplifying access to services and improving productivity through automation[41] - HR Service Delivery automates HR services, including employee lifecycle events such as onboarding, transfers, and off-boarding[42] - Now Assist for HR Service Delivery, a generative AI solution, helps HR leaders drive productivity and operational efficiency, reducing redundant manual tasks and providing quick employee issue resolution[44] - Legal Service Delivery product modernizes internal legal operations with specialized workflows, automated responses, and real-time reporting[45] - Workplace Service Delivery optimizes workspace management with real-time analytics, indoor mapping, and automated workplace requests[46] - Creator Workflows enable low-code development for cross-enterprise workflows, accelerating digital transformation with pre-built templates and modular tools[47] - Now Assist for Creator, a generative AI solution, accelerates app development with text-to-code capabilities, improving productivity and scalability[48] - Automation Engine integrates workflows with robotic process automation, reducing manual processing time from days to minutes in specific use cases[49] Platform Upgrades and Customer Impact - ServiceNow's platform upgrades are released twice annually, delivering new functionality and standalone products to enhance customer productivity[20] - The company has over 8,100 customers as of December 31, 2023, spanning industries like government, financial services, healthcare, and technology[63] - The number of customers with ACV (Annual Contract Value) greater than $1 million was 1,897 as of December 31, 2023, up from 1,643 in 2022 and 1,350 in 2021[197] - ServiceNow's renewal rate was 98% for each of the years ended December 31, 2023, 2022, and 2021[199] Financial Performance and Metrics - ServiceNow's RPO (Remaining Performance Obligations) as of December 31, 2023, was $18.0 billion, with 48% representing cRPO (current RPO). RPO and cRPO increased by 29% and 24%, respectively, compared to December 31, 2022[197] - ServiceNow's free cash flow for the year ended December 31, 2023, was $2.728 billion, compared to $2.180 billion in 2022 and $1.867 billion in 2021[198] - ServiceNow's net cash provided by operating activities for the year ended December 31, 2023, was $3.398 billion, up from $2.723 billion in 2022 and $2.191 billion in 2021[198] - Purchases of property and equipment for the year ended December 31, 2023, were $694 million, compared to $550 million in 2022 and $392 million in 2021[198] - ServiceNow's business combination and other related costs for the year ended December 31, 2023, were $24 million, compared to $7 million in 2022 and $53 million in 2021[198] - The company's cumulative total stockholder return from December 31, 2018 to December 31, 2023 was 396.79%, outperforming the NYSE Composite, S&P 500, and S&P 500 Systems Software indices[185] - The company repurchased 400,000 shares of its common stock in Q4 2023 at an average price of $639.59 per share, as part of a $1.5 billion share repurchase program authorized in May 2023[187] Intellectual Property and Innovation - The company holds over 2,000 U.S. and foreign patents and 600 pending patent applications as of December 31, 2023[69] - The company must innovate rapidly to address evolving customer needs, including AI, machine learning, and hyper automation[97] - Intellectual property litigation could result in substantial costs, damages, and operational disruptions[129] - Unauthorized use or copying of proprietary technology by third parties could harm the company's competitive advantage[132] - The company's use of open-source software may lead to legal risks, potential litigation, and obligations to offer products and services for free or disclose source code, which could harm its ability to sell products and services[134] ESG and Sustainability - ServiceNow's ESG strategy includes reducing its carbon footprint and enabling customers to achieve their emissions reduction goals[70] - Failure to meet ESG goals or maintain ESG practices could harm the company's reputation, impact employee and customer retention, and expose it to regulatory scrutiny or liability[138] - Natural disasters, climate change, and other uncontrollable events could disrupt operations, decrease demand for services, and result in significant expenses or data loss[139] - Climate change-driven impacts, such as extreme weather events, could increase costs, disrupt business operations, and affect the company's ability to maintain or resume operations[140] Cybersecurity and Risk Management - The company has a comprehensive cybersecurity program that includes regular risk assessments, technical safeguards, incident response planning, and third-party risk management[158][159][160][161][162][163][164] - The company's cybersecurity policies and practices are regularly assessed by external consultants and auditors, with significant assessments reported to management and the board[166] - The company's board and audit committee oversee cybersecurity risk management, with regular reports from management on security risks and incident response[167] - The company's CIO, CISO, CTO, and General Counsel have primary responsibility for assessing and managing cybersecurity risks as part of the Security Steering Committee[168] - The company's cybersecurity leadership team has extensive experience, with the CIO having over 20 years in IT and security roles and the CISO having nearly 20 years of experience[169] - The company faces risks related to cybersecurity events, including potential breaches and disruptions to its platform and operations[115] - The company's reliance on third-party service providers introduces new cybersecurity risks, including supply chain attacks[117] - Vulnerabilities in products and services may not be fully identified or addressed, with delays in developing effective patches[118] - Customers and ServiceNow have misconfigured platform settings, leading to unintended data exposure[119] - Security incidents have occurred, including unauthorized access and phishing attacks, which may reoccur[120] - Actual or perceived security breaches can result in financial losses, litigation, and reputational damage[121] Talent and Workforce - The company employs 22,668 full-time employees as of December 31, 2023, with 11,797 in the United States and 10,871 internationally[82] - The company aims to skill one million people on the Now Platform by 2024 through its RiseUp with ServiceNow program[76] - The company maintains systematic pay equity as of September 1, 2023, following regular analyses and adjustments[79] - The company's NextGen Professionals Program focuses on digital skills training for marginalized and underserved communities[76] - The company's global inclusion framework focuses on business, community, and strategic partnerships to drive structural inclusion[74] - Intense competition for talent, particularly in AI, machine learning, and cybersecurity, may increase costs and impact growth[124] Market and Competitive Landscape - The company competes in highly competitive markets with low barriers to entry, facing pricing pressures and technological challenges[95] - The company's revenue growth rate is expected to decline over the long term as its business grows[94] - Sales outside of North America represented 36% and 35% of total revenues for the years ended December 31, 2023 and 2022, respectively[99] - The company relies on its network of partners for an increasing portion of revenues, with potential risks if partners fail to perform[102] - The company faces challenges in new geographic markets, including hiring qualified sales personnel and managing local operations[100] - The company is subject to risks related to government procurement processes, regulations, and contracting requirements, particularly in the public sector[103] - The company has experienced challenges in non-U.S. government business, including bid protests and compliance with complex regulations[106] - The company is increasingly doing business in heavily regulated industries, such as financial services and healthcare, which may impose more stringent requirements[109] - The company's expansion into international markets subjects it to varying regulatory, political, and economic risks[99] - The company's investments in new geographic markets, including data centers and cloud infrastructure, may not yield immediate returns[100] Operational and Financial Risks - Delays or defects in product releases can reduce customer satisfaction and harm growth prospects[125] - Service disruptions or defects may lead to revenue loss, litigation, and reputational damage[126] - Delays in improving information systems could negatively impact business operations and scalability[128] - Revenue recognition over subscription terms means decreases in new or renewed subscriptions may not immediately impact financial results but could negatively affect future periods[141] - The company expects its revenue growth rate to decline over the long term due to increasing competition and market saturation, despite prior significant growth[142] - Changes in effective tax rates, tax laws, or adverse outcomes from tax audits could materially impact the company's financial position and results of operations[144][145][146] - Debt service obligations and compliance with covenants for the 2030 Notes could limit financial flexibility, increase vulnerability to economic changes, and restrict future financing options[147] - Global economic conditions, including inflation, interest rates, and geopolitical instability, could harm the company's business, revenues, and profitability[148] - The company's cash and cash equivalents are distributed across several large financial institutions to mitigate risk from macroeconomic events such as rising interest rates, global inflation, and bank failures[194] - ServiceNow's customers in regions affected by the Russian invasion of Ukraine and the conflict in Israel and the Gaza Strip represented an immaterial portion of the company's net assets and total consolidated revenues as of December 31, 2023, and December 31, 2022[193] - The majority of ServiceNow's non-marketable equity investments do not have material relationships with any one financial institution, reducing exposure to loss[194] Tax and Financial Reporting - The company released $1.05 billion of its valuation allowance during the year ended December 31, 2023, reducing the total valuation allowance from $1.2 billion as of December 31, 2022[210] - A valuation allowance of $196 million was maintained against the company's California deferred tax assets due to uncertainty regarding realizability[210] - The company achieved cumulative U.S. income during the prior twelve quarters as of June 30, 2023, considering pre-tax income adjusted for permanent differences and other comprehensive losses[210] - The company concluded that it is more likely than not that its U.S. federal and state deferred tax assets will be realizable, except for California[210] - The company continues to monitor the need for a valuation allowance against its deferred tax assets on a quarterly basis[210] - The company recognizes the tax benefit of an uncertain tax position only if it is more likely than not the position is sustainable upon examination by the taxing authority[211] - Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in the company's income tax expense[211] - The company's evaluations of uncertain tax positions are based on factors such as changes in facts or circumstances, tax law or guidance, and correspondence with tax authorities[211] Corporate Governance and Stockholder Information - The company's common stock is listed on the New York Stock Exchange under the symbol "NOW" and the board does not intend to pay cash dividends for the foreseeable future[176] - As of December 31, 2023, there were 13 registered stockholders of record of the company's common stock[177] - The company leases approximately 1,120,000 square feet of office space in Santa Clara, California for its principal office and business operations[170]