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    ServiceNow Inc (NOW)

    CFO Change

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    ServiceNow, Inc. is a cloud-based platform company that enhances workflow efficiency across various industries, including government, financial services, healthcare, telecommunications, manufacturing, IT services, technology, oil and gas, education, and consumer products . The company offers digital workflow products that automate and connect work across systems, organized into four main workflow areas: Technology, Customer and Industry, Employee, and Creator . ServiceNow's platform is highly adaptable, addressing workflow challenges across any enterprise department, and is recognized for its innovation, particularly in integrating generative AI .

    1. Digital Workflow Products - Automates and connects work across systems, contributing significantly to subscription revenues and enhancing business outcomes .
    2. IT Operations Management (ITOM) Products - Provides solutions for managing IT operations, priced on a subscription unit basis, and supports enterprise IT infrastructure .
    3. Technology Workflows - Focuses on IT service management, operations management, and business management to streamline technology processes .
    4. Customer and Industry Workflows - Enhances customer service and industry-specific operations, improving customer engagement and satisfaction .
    5. Employee Workflows - Facilitates HR service delivery, workplace services, and employee experience, optimizing workforce management .
    6. Creator Workflows - Empowers users to build custom applications and automate processes, fostering innovation and efficiency .
    NamePositionStart DateShort Bio
    William R. McDermottChairman and Chief Executive OfficerNovember 2019William R. McDermott has been serving as the Chairman of the Board since October 2022 and as the CEO since November 2019. Previously, he was CEO of SAP SE and held executive roles at Siebel CRM Systems and Gartner .
    Chirantan "CJ" DesaiPresident and Chief Operating OfficerJanuary 2023CJ Desai has been President and COO since January 2023. He joined ServiceNow in December 2016 and held various leadership roles, including COO and Chief Product Officer. Previously, he worked at EMC and Symantec .
    Gina MastantuonoChief Financial OfficerJanuary 2020Gina Mastantuono has served as CFO since January 2020. Before ServiceNow, she was EVP and CFO at Ingram Micro and held finance roles at Revlon, InterActiveCorp., and Ernst & Young .
    Christopher BediChief Digital Information OfficerJanuary 2022Christopher Bedi has been the Chief Digital Information Officer since January 2022. He was previously the CIO at ServiceNow and Viavi Solutions, and held senior positions at Verisign .
    Jacqueline CanneyChief People OfficerJuly 2021Jacqueline Canney has served as Chief People Officer since July 2021. She was previously Global Chief People Officer at WPP Group and EVP, Global People at Walmart. She also worked at Accenture .
    Nicholas TzitzonChief Strategy and Corporate Affairs OfficerSeptember 2021Nicholas Tzitzon has been Chief Strategy and Corporate Affairs Officer since September 2021. He joined ServiceNow in January 2020 and was previously EVP at SAP SE .
    Paul SmithChief Commercial OfficerJanuary 2022Paul Smith has been Chief Commercial Officer since January 2022. He was previously President EMEA at ServiceNow and held senior positions at Salesforce.com and Techlightenment .
    Russell S. ElmerGeneral Counsel and SecretaryNovember 2018Russell S. Elmer has been General Counsel and Secretary since November 2018. He was previously General Counsel at LendingClub and held positions at PayPal, eBay, Pricelock, and E*TRADE .
    Amit ZaveryPresident, Chief Product Officer, and COOOctober 28, 2024Amit Zavery was appointed as President, Chief Product Officer, and COO effective October 28, 2024. He previously held leadership roles at Google Cloud and Oracle Corporation .
    Chris BediInterim Chief Product OfficerJuly 2024Chris Bedi has been with ServiceNow since September 2015, initially as CIO. He became Chief Digital Information Officer in January 2022 and Interim Chief Product Officer in July 2024 following CJ Desai's departure .
    1. With the significant uptick in headcount additions and operating expense growth in the back half of the year, particularly in sales and marketing and R&D, how are you balancing these investments with the need for prudent cost management, and can you provide more detail on the expected pace of investment beyond Q4?

    2. The strong growth in RPO is driven by longer contract terms and larger deal sizes, but as contract durations increase, how are you ensuring that you are not taking on additional risk, and what strategies are in place to manage potential future changes in customer commitment levels?

    3. With the introduction of the workflow data fabric and Raptor DB, how does this new data platform enable revenue generation opportunities that were not possible before, and what are your plans for monetizing these new capabilities given the competitive landscape?

    4. You mentioned the hiring of Amit, who has expertise in packaging and pricing. Does this indicate a potential shift in your pricing strategy, particularly regarding your AI offerings like Now Assist and Agentic AI, and how do you anticipate this affecting customer adoption and revenue growth?

    5. As you continue to expand your AI capabilities with products like Now Assist and Agentic AI, are you seeing any changes in the sales cycle or customer hesitancy due to the integration of these advanced technologies, and how are you addressing any potential challenges in customer adoption?

    Program DetailsProgram 1
    Approval DateMay 2023
    End Date/DurationNo fixed expiration
    Total additional amount$1.5 billion
    Remaining authorization amount$562 million
    DetailsReturn value to stockholders and manage dilution from employee equity grants and stock purchase programs
    YearAmount Due (in billions)Debt TypeInterest Rate% of Total Debt
    20301.5 1.40% fixed rate ten-year notes (2030 Notes) 1.40% 100% = (1.5 / 1.5) * 100

    Competitors mentioned in the company's latest 10K filing.

    • Oracle: Enterprise application software vendor that the Now Platform integrates with and complements .
    • SAP: Enterprise application software vendor that the Now Platform integrates with and complements .
    • Salesforce: Enterprise application software vendor that the Now Platform integrates with and complements .
    • Workday: Enterprise application software vendor that the Now Platform integrates with and complements .
    CustomerRelationshipSegmentDetails
    U.S. federal channel partner and systems integrator
    Channel partner and systems integrator for the U.S. government
    All
    12% of total accounts receivable as of Dec 31, 2024 (≈$268.8 million of $2,240 million), 11% of total revenue for 2024 (≈$1,208 million of $10,984 million).
    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers LLP2011 PresentCurrent auditor

    Recent developments and announcements about NOW.

    Financial Reporting

      Earnings Call

      ·
      6 days ago

      ServiceNow has released its Fourth Quarter 2024 Earnings Call transcript, providing insights into its financial performance and strategic initiatives. Key highlights include:

      • Revenue and Profit Performance: ServiceNow reported Q4 subscription revenues of $2.866 billion, marking a 21% year-over-year growth in constant currency, surpassing the high end of their guidance range. The remaining performance obligation (RPO) was approximately $22.3 billion, a 26% year-over-year growth. The company achieved a 98% renewal rate, indicating strong customer retention.

      • Management’s Forward Guidance: For 2025, ServiceNow expects subscription revenues between $12.635 billion and $12.675 billion, representing a 20% year-over-year growth at the midpoint. The company plans to incorporate more elements of consumption-based monetization across its AI and data solutions, aiming for sustainable growth.

      • Market Conditions and Strategic Initiatives: ServiceNow is focusing on expanding its AI capabilities, particularly in generative AI, which has seen rapid adoption. The company is also enhancing its go-to-market strategy to optimize its business model and capitalize on AI and data opportunities.

      • Analyst Questions and Management Responses: Analysts inquired about the hybrid consumption and subscription model, with management expressing confidence in balancing both approaches to drive growth. The company highlighted its strategy to combine subscription pricing with consumption-based monetization to enhance customer value and drive adoption of AI capabilities.

      Overall, ServiceNow is positioning itself as a leader in AI-driven business transformation, with a strong focus on innovation and customer success.

      Earnings Report

      ·
      6 days ago

      ServiceNow, Inc. has released its financial results for the fourth quarter and full-year 2024, showcasing significant growth and strategic initiatives. Subscription revenues for Q4 2024 were $2,866 million, marking a 21% year-over-year growth. Total revenues for the same period were $2,957 million, also reflecting a 21% increase year-over-year. For the full year, subscription revenues reached $10,646 million, a 23% increase from the previous year, while total revenues were $10,984 million, up by 22%.

      The company reported a GAAP net income of $384 million for Q4 2024, with earnings per share of $1.86 (basic) and $1.83 (diluted). The non-GAAP net income was $769 million, with earnings per share of $3.72 (basic) and $3.67 (diluted).

      ServiceNow's Board of Directors has authorized an additional $3 billion for its share repurchase program, aiming to manage the impact of dilution. The company continues to expand its AI capabilities, positioning itself as a leader in enterprise AI transformation. This includes the introduction of new AI Agent Orchestrator and AI Agent Studio, which will be available in March 2025.

      ServiceNow's strategic partnerships with companies like Google Cloud, Oracle, and Visa are set to enhance its AI and data solutions, further driving growth and innovation.

      Overall, ServiceNow's financial performance and strategic initiatives highlight its strong position in the market and its commitment to leveraging AI for business transformation.

    Corporate Leadership

      CFO Change

      ·
      Dec 27, 2024, 9:35 PM

      As of December 24, 2024, there is no indication that Gina Mastantuono, the Chief Financial Officer of ServiceNow, Inc., has left the company. The document only mentions amendments to her employment agreement, effective January 1, 2025, as part of the new Executive Severance Policy.