According to ServiceNow, the current wave of digitization is more than a reaction to the pandemic. The structural shift is making itself felt in a positive way in the quarterly results.
ServiceNow is beating expectations for the fourth quarter of its fiscal year 2021. Revenue was $1.629 billion: 29 percent more than a year earlier. Analysts had predicted only $1.6 billion. The company currently has 1,359 customers running accounted for one million dollars or more each year. 135 new contracts of that magnitude were signed last quarter. For the full fiscal year 2021, ServiceNow sees revenue of $5.573 billion: 30 percent more than last year.
Structural demand
CEO Bill McDermott points to the continuing wave of digitization for the good numbers. This, he says, was set in motion by the pandemic, but has since grown into a structural trend. McDermott therefore does not expect demand to decline. “The technology strategy has become the business strategy,” the CEO says of it.
ServiceNow sees a clear growth trajectory for itself. By 2026, annual revenue should triple to $15 billion. “We are growing like a start-up with the profitability of a global market leader,” McDermott said.
ServiceNow is currently winning major contracts in sectors such as IT service management, IT operations management, HR and CRM.