Q3 2024 ServiceNow Inc Earnings Call Transcript
Key Points
- ServiceNow Inc (NOW) reported strong Q3 2024 results, outperforming all top-line and profitability metrics, with subscription revenue growth of 22.5% at constant currency.
- The company achieved an operating margin of over 31%, exceeding guidance by more than 150 basis points, and closed 96 deals greater than $1 million in net new ACV.
- ServiceNow Inc (NOW) continues to expand its strategic relevance, with its platform being adopted as a governance control tower for AI, integrating with other systems to modernize workflows.
- The company has launched significant AI innovations, including the Xanadu release with over 350 new innovations, enhancing its platform's capabilities in analytics, custom skills development, and industry-specific solutions.
- ServiceNow Inc (NOW) is experiencing growing brand awareness and market opportunities, with partnerships and collaborations with major companies like Siemens, Zoom, and Nvidia, expanding its addressable market to nearly half a trillion dollars.
- Despite strong performance, the macroeconomic environment remains complex, with a value-based market that requires continuous innovation and execution.
- There is a potential risk of over-reliance on AI and new technologies, which could face challenges in adoption and integration across diverse customer environments.
- The company's rapid expansion and headcount growth, particularly in sales and marketing, may lead to increased operational costs and require careful management to maintain profitability.
- ServiceNow Inc (NOW) faces competition in the AI and enterprise software space, necessitating continuous innovation to maintain its leadership position.
- The integration of new technologies and partnerships, while beneficial, could pose challenges in terms of execution and alignment with existing systems and customer expectations.
Move. Thanks. Good afternoon and welcome to the service now our third quarter 2024 earnings conference call. Please note that this call is being recorded. At this time, all participants are in a listen only mode. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question, please press star followed by the number one on your telephone keypad. To withdraw your question, press star second time. I will now turn the call over to Darren Yip, Group Vice President, Investor Relations. Please go ahead, sir.
Good afternoon, and thank you for joining ServiceNow Third Quarter 2024 earnings conference call. Joining me are Bill McDermott, our Chairman and Chief Executive Officer, and genomics into, you know, our Chief Financial Officer. During today's call, we'll review our third quarter 2024 results and discuss our guidance for the fourth quarter and full year 2024.
Before we get started, we want to emphasize that the information discussed on this call, including our
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