ServiceNow Rocks Q2; McDermott: 'AI Unlike Anything in Human History'

In today's Cloud Wars Minute, I spotlight the 30% surge in $20M+
customers as proof of ServiceNow’s enterprise momentum.


Highlights


00:48 — Let me briefly touch on some of the key
numbers from ServiceNow in Q2. So, the top line there:
Subscription revenue was up 22.5% to $3.11 billion. Big jump in
total RPO, or Remaining Performance Obligation, up 29% to almost
$24 billion. I want to point out, too, the subscription revenue
growth in Q2 — 22.5% — that’s a big jump from the Q1 growth rate
of 19.1%.


01:29 — Very nice acceleration by ServiceNow.
Customers spending at least $20 million has gone up 30% year over
year. ServiceNow has 528 customers spending at least $5 million
with them in annual contract value. On the call, McDermott said:
“People and AI together will create new business and new
discoveries and will catalyze economic growth in every corner of
the world.”


02:30 — It's too easy to fall into the trap of
saying, “Oh, AI is going to wipe out a lot of jobs.” It’s also
going to create incredible new opportunities. McDermott also said
he was really focusing on this term of “AI work.” He said AI work
is going to be cross-functional. He said this will lead to big
changes in org charts — they’re going to be very different from
how they were before.


03:28 —McDermott talked about the unique role
that ServiceNow plays in the industry. It's not an applications
company. It’s not an infrastructure company. It's an AI platform
company. And it has found a way to be able to collaborate with
almost all of the Cloud Wars Top 10 companies, and do so in a
way, as McDermott likes to say, where for ServiceNow to win, no
one else has to lose.


04:31 — So, bullishness out the ears McDermott
on this earnings call. Not only is the company doing well, but
more importantly, as he said over and over: “Our customers are
doing well and doing things they were never able to do before.”
So, heady times here in the Cloud Wars.


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