ServiceNow (NOW) delivered solid revenue in the third quarter, beating expectations on both revenue and profit. Additionally, the cloud computing platform raised its subscription revenue outlook. ServiceNow CFO Gina Mastantuono joins us to discuss our quarterly results.
Mastantuono attributed ServiceNow’s third-quarter success to the company’s work on generative AI, particularly its Now Assist feature.
“This is the fastest-growing new product in the company’s history, and we’re really seeing our next-generation AI solution resonate. Customers have spent over $1 million with us, 6 customers have spent over $5 million, and 2 customers have talked about spending over $1,000 with us on our artificial intelligence products. I’ve spent over $10,000,” she told Yahoo Finance. “And what we’re really seeing is our growing relevance as an AI platform for business transformation as CEOs really look to modernize for an AI world. .”
To address investor concerns about operating margins, Mastantuono explains how ServiceNow always seeks to balance “investment for growth and profitability.” He highlighted the company’s commitment to reinvesting in the business “to drive further sales growth,” adding: “We’re probably going to make that choice almost every day.”
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This post was written by Angel Smith
