ServiceNow, the leading digital workflow and technical management support provider company has announced its financial results for its third quarter ended September 30, 2019, surprising market analysts and investors.
The company reported subscription revenues of $835 million in Q3 2019, representing 33% year-over-year growth, 35% adjusted for foreign currency exchange rates.
As positive for company stakeholders and investors, the overall Revenue growth was recorded at 34%, even after the Billings growth was only 29%. The good news is attributed to the backlog that is accelerating its growth to 36%. The company also remains highly profitable on a non-GAAP basis, with operating cash flow of 26% and a free cash flow of 14%.
New CEO, Bill McDermott To Take Over from John Donahoe
Want to publish your own articles on DistilNFO Publications?
Send us an email, we will get in touch with you.
In the midst of bloodshed in the SaaS space, ServiceNow (NOW) was in the spotlight because of a change in leadership and the release of its Q3 2019 financial results. The company’s stock had reacted negatively when the leadership change was announced. However, post results, the stock has rallied.
The incoming CEO, Bill McDermott has a track record of outstanding stock returns with SAP and brings more than 35 years of Industry experience to ServiceNow. Outgoing CEO John Donahoe, as well as incoming CEO Bill McDermott, took questions from Wall Street analysts. Donahoe said not only were new business signings significantly higher, but renewals remained strong at 99 percent.
“We delivered another strong quarter, continuing our focus on driving customer success and expanding our footprint across 75% of the Fortune 500,” said John Donahoe. “We are pleased that companies are turning to ServiceNow to be their strategic partner for digital transformation when they want to unlock productivity and create leverage with their technology investments.”
Company showcase encouraging future
During the quarter, ServiceNow said it completed 46 deals with more than $1 million in net new annual contract value, representing 84% year-over-year growth. Now, the company has 809 total customers with more than $1 million in annual contract value, totaling 32% year-over-year growth in customers.