Bill McDermott, Chairman and CEO at ServiceNow, has set out the ambition to turn the organization into the “defining enterprise software company of the 21st century”.
McDermott made the statement during the company’s quarter four earnings call for the fiscal year 2022 on Wednesday, January 25.
ServiceNow revealed during the call that it had achieved total revenue of $1,940 million during Q4, which equated to 20 percent year-over-year growth.
Subscription revenues were also up during Q4 for FY 2022 and represented a 22 percent year-over-year growth.
McDermott commented on the successful quarter: “ServiceNow continues to perform as a beyond-expectations company.
“Our Q4 surge in new business shows that the secular tailwinds of digitization aren’t going anywhere.
We are driving net‑new innovation, fast growth, and operating leverage. The world works with ServiceNow as the end‑to‑end platform for digital transformation.
The Q4 results mean the company’s contract revenue that will be recognized as revenue in the next 12 months was $6.94bn and represented a 22 percent year-over-year growth.
ServiceNow also revealed that the company has over 1,600 customers with an annual contract value of more than $1 million.
The Next Big Platform?
ServiceNow believes it is becoming a platform company, with its new partner program taking it further in this direction.
The program and ServiceNow’s multi-year vision will support a “$500bn market opportunity” for the Now Platform and associated partner services.
We’re really now a platform company with a multiproduct approach to helping every customer in the industry they operate in, based on the persona we’re discussing business with, and ultimately, it’s that completeness of vision now that has made us one of — about a handful of companies in the entire world that really matter in the enterprise.
Some will contest that ServiceNow is a platform business. Yet, it is stepping in that direction, putting the foundations in place to allow others to build on the product, in addition to bundling lots of apps into a marketplace.
iOS, Windows, Office: these are some of the world’s most recognizable platforms. However, there are few offerings in the CX space that have others actively building on them to increase the value proposition. Microsoft Teams is one example.
Could ServiceNow be the next? Be under no allusion; that is the goal.