Thapana Onphalai I've written about ServiceNow (NYSE:NOW) a couple of times, and I am continually impressed every time I revisit them. I first bought shares in 2018, with that lot up 280% from purchase. I've added to that position, and the company is in my kids' long-term portfolios. Among software companies, NOW ranks with Adobe (ADBE) and Salesforce (CRM) in relative safety while maintaining double-digit revenue growth. The strength of the company's growth combined with its wide-moat and financial stabili ...

ServiceNow, Inc. (NYSE:NOW) Wells Fargo TMT Summit November 29, 2023 2:35 PM ET Company Participants Gina Mastantuono - CFO Conference Call Participants Michael Turin - Software Analyst, Wells Fargo Michael Turin The walk-up music was respect. Gina Mastantuono I like it. Michael Turin It makes you feel pretty good, Gina. Gina Mastantuono It does. It does. Michael Turin Thanks very much for joining us for day two of the Wells Fargo TMT Summit. I'm Michael Turin, software analyst here at Wells. We're very ple ...

ServiceNow, Inc. (NYSE:NOW) UBS Global Technology Conference November 28, 2023 4:15 PM ET Company Participants CJ Desai - President and COO Conference Call Participants Karl Keirstead - UBS Karl Keirstead Okay, everybody. Why don't we get started? I'm Karl Keirstead on the UBS software team. On a serious note, I've been taking an informal poll of the best dressed man at the conference and CJ as it turns out, I think wins. I trust everybody would agree. And I clearly need to raise my game for next year's con ...

Financial Data and Key Metrics Changes - Subscription revenues for Q3 reached $2.216 billion, growing 24.5% year-over-year in constant currency, exceeding guidance by over 100 basis points [71][66] - Remaining performance obligation (RPO) ended at approximately $14.4 billion, representing 23.5% year-over-year constant-currency growth [72] - Current RPO was approximately $7.43 billion, reflecting a 24% year-over-year constant-currency growth, beating guidance by 250 basis points [72] - Non-GAAP operating margin was 30%, over 250 basis points above guidance, driven by disciplined spend management and top-line outperformance [80] Business Line Data and Key Metrics Changes - The company closed 83 deals greater than $1 million in net new annual contract value (ACV), with four deals exceeding $10 million [64] - Creator Workflows crossed $1 billion in ACV in Q3, marking a significant milestone [63] - Employee Pro SKU saw over 100% growth in net new ACV year-over-year [63] - Security and risk workflows had a strong quarter with 10 deals over $1 million, while employee workflows had seven deals over $1 million and one over $10 million [52] Market Data and Key Metrics Changes - The US Federal business had its best net new ACV quarter ever, growing over 75% year-over-year, with 19 federal deals over $1 million [62][53] - In the Americas, the number of deals over $5 million more than quadrupled [15] - EMEA saw a 70% year-over-year increase in deals over $1 million, with significant growth in government and manufacturing sectors [29] - APJ region experienced a 40% year-over-year increase in deals over $1 million [29] Company Strategy and Development Direction - The company aims to be the defining enterprise software company of the 21st century, focusing on customer value and creating immense shareholder value [59][69] - The strategy includes significant investments in generative AI, with the Vancouver release featuring generative AI-powered Now Assist for every workflow [55] - The company is expanding its product development roadmap with use cases in telecommunications, financial services, retail, and public sector [58] - The partnership with Microsoft is aimed at expanding the addressable market and enhancing co-sell opportunities [126] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core business, raising guidance for the full year based on strong Q3 performance [19][95] - The digitization imperative is stronger than ever, with Gartner forecasting $3 trillion to be spent on AI and GenAI between 2023 and 2027 [54] - Management noted that the demand for generative AI is driving business transformation and productivity improvements across various sectors [95][56] - The federal business is expected to continue its strong performance, with a renewal rate of 99% [97][121] Other Important Information - The company repurchased 0.5 million shares as part of its first-ever share repurchase program, with approximately $1.2 billion remaining of the original $1.5 billion authorization [74] - The company is seeing a growing pipeline for generative AI solutions, with over 300 customers in the pipeline from various industries [56] Q&A Session Summary Question: What is the story of the quarter excluding Federal growth? - Management indicated that the overall performance was strong, with significant contributions from various sectors, not solely reliant on Federal growth [7] Question: Can you discuss the competitive environment and large deals? - Management noted that the competitive dynamics are favorable, with the company taking market share from peers and seeing strong demand for Pro Plus offerings [10][15] Question: What are the priorities in sales and marketing investments? - The company is focused on adding quota-bearing sales and R&D resources, with continued investment in these critical areas [17][22] Question: How does the federal business impact revenue recognition? - Management explained that the strong federal quarter leads to more upfront revenue recognition, which impacts reported subscription revenue and margins positively [130] Question: What is the outlook for growth in 2024? - Management expressed optimism about growth prospects in 2024, driven by strong core business performance and the tailwinds from generative AI [95][121]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Exact name of Registrant as specified in its charter) Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-35580 SERVICENOW,INC. Delaware 20-2056195 (State or other jurisdiction of incorporat ...

Financial Data and Key Metrics - Subscription revenue grew 25% year-over-year in constant currency, exceeding the high-end of guidance by 100 basis points [119] - Current RPO grew 24% year-over-year in constant currency, beating guidance by 150 basis points [119] - Operating margin was 25%, 200 basis points above guidance [132] - Free cash flow margin was 21% [132] - 70 deals greater than $1 million in net new ACV, up 30% year-over-year [121] - 19 of the top 20 deals contained five or more products, with nine containing 10 or more products [104] Business Line Data and Key Metrics - ITSM Pro had its strongest growth quarter since 2020, driven by upsells and seat expansions [121] - Customer Workflows had its best net new ACV growth in three years, with eight deals over $1 million [90] - Employee Workflows were in 14 of the top 20 deals, with seven deals over $1 million [90] - Creator Workflows were in 18 of the top 20 deals, with eight deals over $1 million [90] - Security and Risk combined for 17 of the top 20 deals, with eight deals over $1 million [90] Market Data and Key Metrics - Americas is extremely strong, Europe is strong despite geopolitical challenges, and Asia is performing well, especially in Japan [5] - Transportation and logistics led industry growth with over 80% growth in Q2, followed by education, business and consumer services, energy and utilities, and government [120] - U S Federal had its best Q2 ever, continuing strong growth trends [120] Company Strategy and Industry Competition - ServiceNow is focusing on Generative AI, with new Pro Plus SKUs launching in September across ITSM, CSM, and HR SV [112] - The company is leveraging its AI Lighthouse program with NVIDIA and Accenture to accelerate value realization for customers [113] - ServiceNow is expanding its partner ecosystem, including strategic partnerships with Cognizant, KPMG, and Guidewire [100] - The company is positioning itself as the intelligent platform for end-to-end digital transformation, with over 1 trillion workflows running annually [88] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the second half of the year, with strong pipeline generation from the Knowledge 2023 event [133] - Generative AI is seen as a significant tailwind, with potential to boost global GDP by almost $7 trillion [111] - The company is raising its full-year subscription revenue outlook by $95 million and operating margin target to 26 5% [107] - Management believes ServiceNow is well-positioned to lead the intelligence revolution with its integrated suite of automation technologies [115] Other Important Information - ServiceNow achieved a 99% renewal rate in Q2, demonstrating the resilience of its business [103] - The company authorized its first-ever share repurchase program, allowing for up to $1 5 billion of common stock to be purchased [105] - ServiceNow was recognized for AIOps, app engine, and cloud observability by prominent industry analysts [101] Q&A Summary Question: How is the trend in business confidence and willingness to invest? [3] - The company is growing well across all geographies, with Americas being extremely strong, Europe strong despite challenges, and Asia performing well, especially in Japan [5] Question: Can you comment on the strength of ITSM Pro? [8] - ITSM Pro had its best Q2 ever, continuing a trend of strong performance, with $10 million deals including one over $8 million [8] Question: How do you see Generative AI impacting customer adoption and revenue? [125] - Generative AI is expected to drive significant value for customers, with new Pro Plus SKUs launching in September and potential revenue contributions expected in the future [127][136] Question: What is driving the strength in Customer Workflows? [80] - Customer Workflows had a strong quarter, driven by tying front office to mid office and back office workflows, with large brands showcasing their use of the solution [78] Question: How is the FINS vertical performing? [59] - The FINS vertical continues to show strength, with measurable progress in the banking sector across the US, Canada, and Europe, and a strong pipeline for the second half [74] Question: How is the channel strategy progressing? [61] - The channel strategy is gaining momentum, with technology partners recognizing the power of combining their solutions with ServiceNow's workflow automation [63]

| --- | --- | --- | --- | |------------------------------------------------------------------------------------------|-------------|-------|-----------------------------------------------------------------| | Supplemental Information \n in millions Q2'23 | | | | | Stock-based compensation | | | | | Cost of revenues Subscription | $ 50 $ 15 | | | | Professional services and other | | | | | Operating expenses: | $ 120 | | | | Sales and marketing | $ 145 | | | | | | | | | Research and development | $ 67 | | | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-35580 SERVICENOW,INC. (408) 501-8550 (Registrant's telephone number, including area code) Not Applicable (Former name, former address and formal ...

ServiceNow, Inc. (NYSE:NOW) Jefferies Software Conference 2023 May 31, 2023 5:30 PM ET CorporateParticipants Gina Mastantuono - Chief Financial Officer ConferenceCall Participants Samad Samana - Jefferies Samad Samana Hi, everybody. Thanks for joining us today. So, for this session, we have the CFO of ServiceNow. Gina, thank you for joining us, really appreciate you being here. Newport has been great so far. And I'm glad to be joined us. How are you doing? Gina Mastantuono Great. Thank you so much for havin ...

ServiceNow, Inc. (NYSE:NOW) JPMorgan 51st Annual Global Technology, Media and Communications Conference May 23, 2023 3:55 PM ET Company Participants C.J. Desai - President & COO Conference Call Participants Mark Murphy - JPMorgan Mark Murphy Okay. Good afternoon, everyone. I am Mark Murphy, Software Analyst with JPMorgan. And it is a real pleasure to be here with C.J. Desai, who is President and COO of ServiceNow. First of all, C.J., it was great seeing you on stage at your own conference. C.J. Desai Thank ...