Enterprise and workplace management software orchestrator ServiceNow announced rising revenue numbers on Wednesday evening during its fourth quarter 2022 earnings call, saying total revenue topped $1.9 billion. , representing a 20% year-over-year increase.

IDC analyst Stephen Elliot noted that strong company management and the company’s expansion into the workplace experience market were contributing factors to the reported growth.

Most of ServiceNow’s revenue comes from service subscriptions, which reached $1.86 billion in the quarter, a year-over-year increase of 22%. The company’s current remaining performance obligations, which represent contractual revenue that will be recognized as such in ServiceNow’s figures over the next 12 months, reached nearly $7 billion as of the closing date. That’s a 22% increase from the fourth quarter of 2021.

Chairman and CEO Bill McDermott was bullish on the company’s performance, saying the market conditions that have contributed to ServiceNow’s revenue growth are expected to remain strong for the foreseeable future.

“Our increase in new business in the fourth quarter shows that the age-old tailwinds of digitalization are not going anywhere,” he said in a statement accompanying the results. “The world is working with ServiceNow as an end-to-end platform for digital transformation.”

ServiceNow’s substantial growth exceeded profitability forecasts, according to chief financial officer Gina Mastantuono, who attributed much of the upside to net gains in value from new annual contracts.

“Additionally, our results were generated with a lower mix of renewals anticipated from 2023 onwards, providing us with more opportunities to continue our expansion throughout the year,” she said in the statement. .

Despite the growth, ServiceNow’s share price fell nearly 8% in after-hours trading, for reasons that weren’t immediately clear. McDermott, however, vowed “absolutely no layoffs in 2023,” according to a Bloomberg report, bucking a recent trend among tech vendors.

IDC’s Elliot, I&O group vice president, cloud operations and DevOps, attributed ServiceNow’s continued success to a healthy company culture, saying that while rapid growth can sometimes cause companies to lose some of their strengths over time, ServiceNow has managed to avoid this.

“I would say they are hitting on all cylinders,” he said. “I also think they’ve been very consistent and focused on what customers are looking for, and translated that into investments in the business.”

That’s no surprise, Elliot added, given the strong leadership in ServiceNow’s executive ranks. He credited McDermott, in particular, for helping to minimize internal politics and other distractions that can sap a company’s momentum as it expands into new areas of business.

“They’ve had so much success in IT management,” he said. “And over the past five years, the expansion into field service management, HR, employee experience operations; [their focus] continued to drive them.

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