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5 Fascinating Learnings from ServiceNow at ~$10 Billion in ARR

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So there’s a brand new member of the $10 Billion ARR Membership.

ServiceNow is the enterprise workflow chief that almost all of us have form of heard of, however don’t absolutely perceive or know an excessive amount of about.  It’s since you don’t work in an enormous enterprise.  ServiceNow merely dominates there.

It’s a $10 Billion ARR rocketship, nonetheless rising a shocking 27% (!) at that scale, with 1,900 $1m+ prospects.  And it’s buying and selling now at an all-time excessive of $160 Billion, or 16x (!) ARR.  Far, far forward of the common of 6x at present.

Wow.  These are the Better of Occasions for ServiceNow.  Interval.

5 Fascinating Learnings:

#1.  Rising as Quick at $10B ARR because it Was at $8B ARR, and Nearly as Quick as $5B ARR

Again at $8B ARR, ServiceNow was rising at 25% a yr.  Right now, it’s rising even quicker at 27%!  And at $5B ARR, it was rising 32%.

#2.  Seeing Sturdy Bookings As Nicely Going Into 2024.  No Downturn At All.

You may see beneath, “RPO” — contracts which might be signed however not but absolutely delivered — stayed sturdy by 2022 and 2023 and really accelerated throughout the finish of 2023.  Occasions are a bit tougher at ServiceNow for positive — however there’s no downturn.

#3.  Nearly 1,900 $1m+ Prospects, Rising 15% a Yr

ServiceNow does an unbelievable job of rising its buyer spend.

#4.  The Massive Prospects Pay $4.5 Million a Yr — Up From $3.8 Million 24 Months In the past

Slowly and steadily, ServiceNow grows its greatest accounts … even larger, yr over yr.  From $3m on common in 2020 to $4.5m on common in 2024.

#5.  99% Renewal Price — And No “Downturn” or Macro Impacts Right here

ServiceNow prospects typically signal 3+ yr prospects, and it’s very enterprise.  So that you wouldn’t count on a lot in a single day churn.  Nonetheless, seeing constant 98%-99% brand renewal charges could be very, very spectacular.

And some different fascinating learnings:

#6.  63% of Income from North America

World revenues are slowly creeping up as a % of complete.

#7.  $440,000 in Income Per Worker

ServiceNow could be very environment friendly, handily exceeding the $300,000 or so common income per worker for the common public SaaS firm.  As you’ll be able to see beneath, ServiceNow retains steadily hiring.  However like most different leaders at present, it’s hiring extra slowly than it’s rising income.  That retains the working margins going up.

Wow,  ServiceNow.  The enterprise workflow engine that simply retains on going.

Even at $10,000,000,000 in ARR.



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