Managed services News
ServiceNow CEO Bill McDermott On ‘Bold’ Expansion Plans, Innovations, New Chairman Role
Joseph F. Kovar
“ServiceNow is the only software company in the world operating at the ‘rule of 60.’ So if you look at our bottom-line profitability and our top-line revenue growth, combined we‘re right around the rule of 60. And there’s no other company in the world, none, not a single one, including the hyperscalers, that are operating at the rule of 60,” says ServiceNow CEO and newly crowned Chairman Bill McDermott.
Wednesday was a busy day for ServiceNow, the Santa Clara, Calif.-based workflow platform provider. It started out with the introduction of RiseUp with ServiceNow, a new program the company introduced to train and certify one million new ServiceNow experts who by 2024 will take their skills to the company, its partners, and its customers.
ServiceNow Wednesday also named CEO Bill McDermott the company’s new chairman, with former chairman and company founder Fred Luddy becoming a member of the board.
The company also reported a very healthy third fiscal quarter 2022 in which GAAP subscription revenue rose year-over-year by 28.5 percent to $1.74 billion, total revenue rose 27.5 percent to $1.83 billion, the number of customer paying over $10 million in actual cash value in the quarter grew 60 percent, and the renewal rate reached 98 percent. And to top it off, the company raised its year-over-year constant currency growth outlook to 28.5 percent, excluding what it termed a 550-basis point headwind due to foreign exchange.
[Related: ServiceNow CEO Bill McDermott: ‘We’re In A Market Of One’]
ServiceNow’s stock surged 12 percent in after-hours trading Wednesday to $410.75.
McDermott, in an exclusive meeting with CRN, said he is excited to see ServiceNow beat both its top-line and bottom-line goals in the quarter, as well as follow-through on new innovations expected for the rest of 2022 and into 2023.
”[With our Tokyo release], we’re now making a bold move into security. Digital trust is a big thing. And think about encryption, data anonymization, security control, and all these things to protect business critical applications, think of that vault on one platform, integrating with all the other solutions, but giving one version of the truth so managers can quickly automate and take action on threats and remediate them before they become serious.
There’s a lot going on at ServiceNow. Click through our slideshow to read the CRN interview.