Workflow automation company, ServiceNow (NOW), reported earnings whereby they exceeded top and bottom line guidance and raised their full-year 2024 outlook. What makes this company special is its “land-and-expand” business model, whereby they have very high renewal rates with existing customers (+98%) and they expand and grow the revenue per customer over time.
And subscription revenue growth remains intacts as you can see in the following chart.
However, one of my favorite NOW charts is this one that shows the customer “land-and-expand” premise working over time.
Additionally, CEO Bill McDermott had this to say about artificial intelligence (he’s thinking BIG—encouraging!):
“Our relevance as the AI platform for business transformation remains stronger than ever as CEOs are looking for new vectors of growth, simplification, and digitization. ServiceNow intends to reinvent every workflow, in every company, in every industry with GenAI at the core.”
Long ServiceNow (in the Blue Harbinger Disciplined Growth Portfolio).