ServiceNow boss embarks on corporate trolling to get rise out of SAP

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ServiceNow CEO Bill McDermott utilized portion of his convention telephone pinch analysts past nighttime to troll his rival and erstwhile employer SAP but only aft he'd walked listeners done nan latest events successful endeavor wares.

Q3 proved a invited boost to McDermott and ServiceNow. As customer spending successful parts of nan tech manufacture slows, nan workflow package biz has seen its valuation climb connected nan backmost of a 21 percent year‑over‑year summation successful revenues, which deed $1.8 cardinal successful Q3 2022.

Total gross profit reached $1.43 billion, up 78 percent connected nan year-ago quarter, while nett rate provided by operating activities was $265 million, representing a 15 percent summation connected Q3 2021.

ServiceNow saw its banal summation astir 12 percent during post-market trading yesterday aft net per stock came successful ahead of analysts' expectations.

McDermott told Wall Street types that while location were immoderate "macro crosswinds" – presumably referring to imminent recessions successful awesome developed economies – nan institution enjoyed beardown "secular tailwinds."

"Digital exertion is simply a deflationary force," said nan exec famed for his fluency successful corporate verbiage. "The endeavor integer translator marketplace is validated. The finance thesis is stronger than ever. Hybrid multi-cloud deployments, take of a modern information infrastructure stack, cybersecurity and consequence management, AI and information analytics, distant activity and collaboration, these trends are not only durable, their relevance is expanding."

The results opposition pinch Salesforce and SAP – rivals successful nan endeavor package marketplace – pinch nan former saying it saw income cycles stretched and nan second missing expert expectations pinch its mixed results overshadowed by difficulties of pulling retired of Russia.

  • ServiceNow: Customers 'struggling to understand nan worth of ELAs', says Gartner
  • Oracle's Larry Ellison shares fears of bankrupting Western civilization pinch healthcare
  • Salesforce group to prosecute thousands successful India aft hitting brakes connected US recruitment
  • Enterprise package deals slower to adjacent arsenic macroeconomics deed IT departments

In July, ServiceNow saw its valuation dip aft cutting its income outlook for nan year. Speaking to a Citi Group expert astatine nan time, CFO Gina Mastantuono echoed concerns of chap ample package vendors Salesforce and Workday who some presented grounds of a woody slowdown successful their caller financial results.

"We are assuming that nan elongated woody cycles aliases nan accrued scrutiny connected deals and support processes will proceed done nan remainder of nan year," she told investors, adding that nan institution had already taken nan inclination into relationship successful its gross guidance.

However, speaking connected an expert telephone this week, Mastantuono claimed that though ServiceNow was "not immune to nan macro environment," it was "staying person to our customers than ever before."

"There's much outlook connected deals that are getting closed... group are looking astatine deals closer, but we are closing them," she said.

McDermott took nan Q3 results arsenic an opportunity for a spot of firm trolling. He launched a caller inaugural dubbed RiseUp pinch ServiceNow, pinch plans to transverse nan period of 1 cardinal ServiceNow-certified professionals by 2024.

Any similarity to RISE pinch SAP, a programme to assistance customers to nan cloud, must beryllium purely coincidental moreover if McDermott was erstwhile CEO of nan German package giant. ®