💼 ServiceNow (NYSE:NOW) delivered strong Q3 2024 results, with a 22.5% rise in subscription revenue, reaching $2.715 billion and exceeding expectations. This growth was fueled by the integration of generative AI into the Now Platform, boosting adoption and performance. Total remaining performance obligations (RPO) increased by 33% to $19.5 billion, emphasizing the platform’s role in digital transformation.
📈 During Q3, ServiceNow closed 96 deals with annual contract values (ACV) above $1 million, including six new clients. The number of customers with over $20 million in ACV grew nearly 40% year-over-year, highlighting effective targeting and strategic AI-driven expansion efforts. This focus on securing large enterprises has strengthened ServiceNow’s competitive position in the expanding AI sector.
🦾 The company introduced new products like Xanadu and RaptorDB, designed to enhance AI-driven automation and data integration. These innovations could double the total addressable market to $0.5 trillion, driving future growth. By boosting processing speeds, they improve workflow efficiency across diverse industries.
📊 More than 44 customers are now spending over $1 million annually on Now Assist, making it the fastest-growing product in ServiceNow’s history. The company’s Plus SKUs saw a 30% price increase, fueled by demand for AI solutions. A major tech firm reported a 75% improvement in case deflection rates, aiming to automate up to 60% of workflows.
🚀 With AI projected to contribute $20 trillion to the global economy by 2030, ServiceNow aims to lead in AI-powered business automation. As enterprises adopt AI to enhance growth and productivity, ServiceNow is positioned as a key partner in driving digital transformation globally.
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