Our monthly ServiceNow Rundown serves to get you caught up on all things ServiceNow. In the past, we’ve covered stock options (the highs and the lows), press releases, what the insiders are talking about, new integrations, and trending topics like AI and Machine Learning.
The news this past month speaks for itself as to the stability of and impressive prospects for ServiceNow. Just last week they had their public Q1 earnings call which heightened their overall 2019 fiscal outcome (due largely in part to their immense pipeline). Plus, they are maturing as they partner with established “name-brand” platforms like Adobe to fulfill a critical common interest.
But enough of the highlights, let’s jump right into the details of ServiceNow’s biggest April news.
ServiceNow exceeds Q1 2019 earning expectations.
Wait. Wasn’t that the title last quarter?
Well yes, it was, you might remember that ServiceNow exceeded their earnings in Q4 of 2018. Which makes it all the more notable that they did it again this quarter. Let’s look at a few of the highlighted numbers from the call.
- Subscription revenues (adjusted for constant currency) surged 40% from the year-ago quarter to $760.4 million.
- ServiceNow maintained consistent renewal rate of 98% during the reported quarter.
- Professional services and other revenues improved 11% (adjusted for constant currency) from the year-ago quarter to $50.8 million.
- Total billings grew 30% on a year-over-year basis (adjusted for constant currency and constant billings duration) to $899.5 million.
Since Knowledge 2018, ServiceNow has been putting a heavier focus on adoption as an enterprise-wide platform rather, than individual modules and products to be implemented separately. For perhaps the first time since this shift in their messaging, their quarterly earnings reflected that with eight of their top twenty new customers adopting five or more ServiceNow products. Platform “add-ons” and other services, comprising Performance Analytics, Cloud Options, among others, were leveraged by nineteen out of the twenty top new wins.
A portion of the call was dedicated to looking at ServiceNow across world regions, and while ServiceNow’s focus remains largely on adoption here in the United States, EMEA contributed to 25% of their revenue and APAC 9%. The underlying conversation here that is worth noting is actually the subtle differences in product and platform adoption between regions. Since ServiceNow is putting the emphasis on continuing the trend of business-wide platform adoption, we would expect to see that messaging reflected more and more in their go-to-market strategy in EMEA and APAC.
Overall, ServiceNow’s stellar first quarter raised their 2019 fiscal outlook, with their current pipeline being a huge factor for the next six months. Their dedication to strengthening the existing platform with new capabilities and experiences is unparalleled in the industry. For instance, their new partnership with Adobe ADBE to enhance employee and customer front and back-end experiences…
ServiceNow puts money where their mouth is by partnering with Adobe to advance customer experience management.
At last month’s Adobe Summit, the two companies announced their newly inked partnership with the joint goal of empowering companies to create seamless digital workflows and personalized customer experience touchpoints.
This partnership will enable customers to benefit from a centralized, intelligent Customer Experience Management (CXM) tool and, along with the ServiceNow Now Platform, customers will be able to streamline work between teams and ultimately build rich, real-time customer profiles in an instant. Mutual customers of ServiceNow and Adobe Experience Platform will be able to integrate ServiceNow digital workflows, knowledge management and service catalogs with a personalized engagement layer through Adobe Experience Platform, to create consistent, contextual experiences and services.
“Customers demand exceptional experiences, and businesses are looking to transform customer service and engagement. Together, ServiceNow and Adobe will help enable seamless digital workflows that power the experiences customers want and that businesses seek to provide.” – John Donahoe, President & CEO, ServiceNow
Knowledge 2019 is (nearly) here.
I would be remiss if I did not mention that ServiceNow’s annual Knowledge conference begins next week. As unquestionably ServiceNow’s biggest investment of the year, it cannot be ignored.
The conference kicks off with a Partner and Analyst day where ServiceNow and invited partners join in keynotes and panel discussions about the ecosystem and where ServiceNow as a company and a platform is going. This year, we are expecting heavy conversations on the curation of the ServiceNow partner ecosystem, as well as a new classification system for partner levels.
The Partner day transitions into three days, Tuesday through Thursday, of training, CreatorCon, workshops, keynotes and showroom floor discussions. ServiceNow’s mantra for the whole event is Get Inspired, Get Educated, Get Connected, and Get Excited. Given the preview of the content that we’ve been able to see, these four quips fit the bill.
In fact, if you’re heading out to Vegas, we’ve compiled a “top-picks” list of what you shouldn’t miss out in Vegas. If you’re planning on enjoying Knowledge week away from the lights (and smells) of Vegas in the comfort of your own home, we have resources for you too. Check them out here.