Latest news with #GinaMastantuono
Yahoo
14-05-2025
- Business
- Yahoo
This CFO had a ‘front-row seat' to one of the best growth stories in enterprise tech
Good morning! Australia elects first female leader of Liberal party, General Motors announces new EV battery tech, and a CFO pitches enterprise tech's biggest growth story. - Grow, grow, grow. It's relatively rare for a software company to pass $10 billion in revenue, Gina Mastantuono says. Besides the top dogs like Microsoft and Oracle—which generally expand beyond software—most enterprise tech businesses don't reach that scale. ServiceNow did that last year, and my colleague Sheryl Estrada has a new interview with Mastantuono, its CFO, talking about how. ServiceNow isn't in the sexiest of categories. It originally was known for automating IT support requests, and has since added HR operations and customer relationship management to its product suite. By entering the CRM space, ServiceNow is competing with industry giant Salesforce. That's a strategic expansion, Mastantuono says, widening the remit of what ServiceNow is. Existing customers grew their $5 million-plus contracts by 40%, adding upsold services as ServiceNow expanded. An AI assistant offering is expected to contribute $1 billion in revenue by 2026. ServiceNow's growth depended on offering more to existing customers, not just wooing new ones. In 2025, the company expects to reach $12.7 billion in revenue, it has told investors. Since debuting on the Fortune 500 in 2023, it has so far climbed the ranks of that elite list. "I've had a front-row seat for what I think is one of the most remarkable growth trajectories in enterprise tech,' Mastantuono, who joined in 2020, told Sheryl. Read the full story here. Emma The Most Powerful Women Daily newsletter is Fortune's daily briefing for and about the women leading the business world. Today's edition was curated by Nina Ajemian. Subscribe here. This story was originally featured on Sign in to access your portfolio
Business Times
06-05-2025
- Business
- Business Times
ServiceNow eyes US$1 billion revenue for AI product by 2026
[NEW YORK] ServiceNow said its flagship artificial intelligence (AI) software product will hit US$1 billion in annual contracted business by next year. The new 2026 guidance for the generative AI product, dubbed Now Assist, was given on Monday (May 5) by chief financial officer Gina Mastantuono during the company's annual conference. Currently, the product has more than US$250 million in annual contract value, which is the amount customers have agreed to pay for it each year, she added. ServiceNow makes software applications that help companies organise and automate their personnel and information technology operations. Like many peers, ServiceNow has spent the last two years baking generative AI features into its products. It offers a more expensive subscription tier with those tools, which carry out tasks based on prompts from users. The stock has jumped 20 per cent since Apr 23, when the Santa Clara, California-based company gave a forecast for sales growth in the current quarter that topped analysts' estimates, suggesting demand for its software remains resilient amid uncertainty about the economic effects of escalating US tariffs. Some customers are spending 60 per cent more on ServiceNow products after upgrading for access to the AI features, Mastantuono said. 'The agentic AI capabilities are compelling and these double upgrades make for some really great math,' she said. Analysts project ServiceNow's annual revenue will top US$13 billion this year. BLOOMBERG
Bloomberg
05-05-2025
- Business
- Bloomberg
ServiceNow Eyes $1 Billion Revenue for AI Product by 2026
ServiceNow Inc. said its flagship artificial intelligence software product will hit $1 billion in annual contracted business by next year. The new 2026 guidance for the generative AI product, dubbed Now Assist, was given Monday by Chief Financial Officer Gina Mastantuono during the company's annual conference. Currently, the product has more than $250 million in annual contract value, which is the amount customers have agreed to pay for it each year, she added.
Yahoo
26-04-2025
- Business
- Yahoo
NOW Q1 Earnings Call: AI Momentum and Expanding Product Portfolio Drive Results
Enterprise workflow software maker ServiceNow (NYSE:NOW) met Wall Street's revenue expectations in Q1 CY2025, with sales up 18.6% year on year to $3.09 billion. Its non-GAAP profit of $4.05 per share was 5.6% above analysts' consensus estimates. Is now the time to buy NOW? Find out in our full research report (it's free). Revenue: $3.09 billion vs analyst estimates of $3.08 billion (18.6% year-on-year growth, in slight beat) cRPO (current remaining performance obligations) and RPO (remaining performance obligations) both exceeded expectations, both growing >20% year-on-year Adjusted EPS: $4.05 vs analyst estimates of $3.83 (5.6% beat) Adjusted Operating Income: $953 million vs analyst estimates of $928.1 million (30.9% margin, 2.7% beat) The company provided subscription revenue guidance for the full year of $12.66 billion at the midpoint Operating Margin: 14.6%, up from 12.8% in the same quarter last year Free Cash Flow Margin: 47.7%, similar to the previous quarter Annual Recurring Revenue: $12.02 billion at quarter end, up 19.1% year on year Billings: $3 billion at quarter end, up 17% year on year Market Capitalization: $195.6 billion ServiceNow's first quarter results were shaped by increased customer adoption of AI-powered workflow solutions across its portfolio, with management highlighting strong demand for its Now Assist and Pro Plus offerings. CEO Bill McDermott noted that the company saw a "substantial acceleration for ServiceNow AI," pointing to a quadrupling in Pro Plus deal volume and a 33% quarter-over-quarter increase in average deal size. Additionally, large deal activity remained elevated, with 72 transactions exceeding $1 million in annual contract value, reflecting continued enterprise appetite for digital transformation initiatives despite a fluid macroeconomic environment. Looking ahead, management's guidance for the full year takes a cautious approach, balancing visible demand with potential geopolitical and federal spending uncertainties. CFO Gina Mastantuono emphasized that updated forecasts "reflect real-world complexity and bake in a healthy degree of conservatism," while maintaining that customer pipelines remain robust. The company is prioritizing investments in AI expansion, federal sector penetration, and integration of new acquisitions, such as Moveworks and as key contributors to its growth outlook for the remainder of the year. ServiceNow's leadership attributed first quarter performance to heightened demand for AI-driven automation and notable momentum in both established and expanding product areas. The company cited several operational and product milestones that shaped results and will influence its trajectory going forward. AI Adoption Accelerates: Management reported a significant increase in customer uptake of Now Assist and Pro Plus AI tools, with Pro Plus deal volumes quadrupling year-over-year and average deal sizes rising by one-third quarter-over-quarter. These solutions are being adopted across a wide range of industries, including manufacturing and healthcare. Expansion in CRM and Industry Workflows: The CRM and industry workflows segment grew rapidly, particularly in EMEA and Japan, with management highlighting over 50% net new annual contract value growth in these regions. ServiceNow's recent acquisition of is expected to further boost its capabilities in sales and order management automation. Federal Sector Outperformance: Public sector business grew over 30% year-over-year in net new annual contract value, driven by the company's focus on government automation and modernization. Management introduced a government transformation suite and reported a strong pipeline despite federal budget uncertainties. Broader Workflow Adoption: Large enterprises are expanding ServiceNow usage beyond technology workflows into employee, finance, and supply chain areas. For example, HR service delivery and finance/supply chain workflows grew 40% and 60% year-over-year, respectively, reflecting the platform's broader relevance. C-level Leadership Transition: Paul Phipps was promoted to president of global customer operations, succeeding Paul Smith, who will remain as a special adviser during the transition. Management emphasized the seamless change as part of succession planning to support long-term strategy execution. Management's outlook for the coming quarters centers on sustained investment in AI capabilities, selective expansion into new markets, and a disciplined approach to navigating macroeconomic and sector-specific risks. AI and Platform Investment: ServiceNow is prioritizing development and adoption of its AI-powered products, such as Now Assist and RaptorDB, which management views as central to maintaining competitive differentiation and supporting large enterprise needs. Federal and Public Sector Opportunities: The company expects continued opportunity in government modernization, but is incorporating caution into its forecasts due to potential changes in federal budgets and procurement cycles. Integration of Acquisitions: The successful integration of Moveworks and is expected to accelerate ServiceNow's roadmap in employee self-service, enterprise search, and AI-enabled sales processes, broadening its addressable market and supporting future growth. Keith Weiss (Morgan Stanley): Asked about enterprise demand and potential delays in decision-making due to macro uncertainty. CFO Gina Mastantuono stated that demand remains strong, pipelines are robust, and guidance reflects a prudent level of conservatism given current risks. Kash Rangan (Goldman Sachs): Inquired about the impact of the Moveworks acquisition and adjustments to the sales strategy amid tariff and customer challenges. Management explained that Moveworks brings AI talent and unified user experience capabilities, enhancing ServiceNow's roadmap and customer engagement. Mark Murphy (JPMorgan): Probed the scope of ServiceNow's ambitions in the CRM market. CEO Bill McDermott highlighted a differentiated approach to CRM, focusing on integrated, AI-powered platforms for sales, order management, and service. Alex Zukin (Wolfe Research): Questioned the shift in workflow mix and whether CRM and industry workflows will continue to grow as a percentage of revenue. Management expects continued progress in these workflows and emphasized that the quarter's mix shift was not due to pull-forward activity. Karl Keirstead (Evercore ISI): Asked if recent macro changes would alter the seasonality of short-term backlog growth. Gina Mastantuono responded that the expected shape of renewal and backlog flows remains unchanged despite ongoing macro dynamics. In the coming quarters, the StockStory team will be closely monitoring (1) the pace of customer adoption for Now Assist and other AI features, (2) the impact of federal sector procurement trends and any shifts in government budgets, and (3) integration milestones for Moveworks and Progress in expanding CRM and finance/supply chain workflows, as well as updates on large enterprise deal momentum, will also be key indicators of ServiceNow's ongoing execution. ServiceNow currently trades at a forward price-to-sales ratio of 14.6×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
26-04-2025
- Business
- Yahoo
NOW Q1 Earnings Call: AI Momentum and Expanding Product Portfolio Drive Results
Enterprise workflow software maker ServiceNow (NYSE:NOW) met Wall Street's revenue expectations in Q1 CY2025, with sales up 18.6% year on year to $3.09 billion. Its non-GAAP profit of $4.05 per share was 5.6% above analysts' consensus estimates. Is now the time to buy NOW? Find out in our full research report (it's free). Revenue: $3.09 billion vs analyst estimates of $3.08 billion (18.6% year-on-year growth, in slight beat) cRPO (current remaining performance obligations) and RPO (remaining performance obligations) both exceeded expectations, both growing >20% year-on-year Adjusted EPS: $4.05 vs analyst estimates of $3.83 (5.6% beat) Adjusted Operating Income: $953 million vs analyst estimates of $928.1 million (30.9% margin, 2.7% beat) The company provided subscription revenue guidance for the full year of $12.66 billion at the midpoint Operating Margin: 14.6%, up from 12.8% in the same quarter last year Free Cash Flow Margin: 47.7%, similar to the previous quarter Annual Recurring Revenue: $12.02 billion at quarter end, up 19.1% year on year Billings: $3 billion at quarter end, up 17% year on year Market Capitalization: $195.6 billion ServiceNow's first quarter results were shaped by increased customer adoption of AI-powered workflow solutions across its portfolio, with management highlighting strong demand for its Now Assist and Pro Plus offerings. CEO Bill McDermott noted that the company saw a "substantial acceleration for ServiceNow AI," pointing to a quadrupling in Pro Plus deal volume and a 33% quarter-over-quarter increase in average deal size. Additionally, large deal activity remained elevated, with 72 transactions exceeding $1 million in annual contract value, reflecting continued enterprise appetite for digital transformation initiatives despite a fluid macroeconomic environment. Looking ahead, management's guidance for the full year takes a cautious approach, balancing visible demand with potential geopolitical and federal spending uncertainties. CFO Gina Mastantuono emphasized that updated forecasts "reflect real-world complexity and bake in a healthy degree of conservatism," while maintaining that customer pipelines remain robust. The company is prioritizing investments in AI expansion, federal sector penetration, and integration of new acquisitions, such as Moveworks and as key contributors to its growth outlook for the remainder of the year. ServiceNow's leadership attributed first quarter performance to heightened demand for AI-driven automation and notable momentum in both established and expanding product areas. The company cited several operational and product milestones that shaped results and will influence its trajectory going forward. AI Adoption Accelerates: Management reported a significant increase in customer uptake of Now Assist and Pro Plus AI tools, with Pro Plus deal volumes quadrupling year-over-year and average deal sizes rising by one-third quarter-over-quarter. These solutions are being adopted across a wide range of industries, including manufacturing and healthcare. Expansion in CRM and Industry Workflows: The CRM and industry workflows segment grew rapidly, particularly in EMEA and Japan, with management highlighting over 50% net new annual contract value growth in these regions. ServiceNow's recent acquisition of is expected to further boost its capabilities in sales and order management automation. Federal Sector Outperformance: Public sector business grew over 30% year-over-year in net new annual contract value, driven by the company's focus on government automation and modernization. Management introduced a government transformation suite and reported a strong pipeline despite federal budget uncertainties. Broader Workflow Adoption: Large enterprises are expanding ServiceNow usage beyond technology workflows into employee, finance, and supply chain areas. For example, HR service delivery and finance/supply chain workflows grew 40% and 60% year-over-year, respectively, reflecting the platform's broader relevance. C-level Leadership Transition: Paul Phipps was promoted to president of global customer operations, succeeding Paul Smith, who will remain as a special adviser during the transition. Management emphasized the seamless change as part of succession planning to support long-term strategy execution. Management's outlook for the coming quarters centers on sustained investment in AI capabilities, selective expansion into new markets, and a disciplined approach to navigating macroeconomic and sector-specific risks. AI and Platform Investment: ServiceNow is prioritizing development and adoption of its AI-powered products, such as Now Assist and RaptorDB, which management views as central to maintaining competitive differentiation and supporting large enterprise needs. Federal and Public Sector Opportunities: The company expects continued opportunity in government modernization, but is incorporating caution into its forecasts due to potential changes in federal budgets and procurement cycles. Integration of Acquisitions: The successful integration of Moveworks and is expected to accelerate ServiceNow's roadmap in employee self-service, enterprise search, and AI-enabled sales processes, broadening its addressable market and supporting future growth. Keith Weiss (Morgan Stanley): Asked about enterprise demand and potential delays in decision-making due to macro uncertainty. CFO Gina Mastantuono stated that demand remains strong, pipelines are robust, and guidance reflects a prudent level of conservatism given current risks. Kash Rangan (Goldman Sachs): Inquired about the impact of the Moveworks acquisition and adjustments to the sales strategy amid tariff and customer challenges. Management explained that Moveworks brings AI talent and unified user experience capabilities, enhancing ServiceNow's roadmap and customer engagement. Mark Murphy (JPMorgan): Probed the scope of ServiceNow's ambitions in the CRM market. CEO Bill McDermott highlighted a differentiated approach to CRM, focusing on integrated, AI-powered platforms for sales, order management, and service. Alex Zukin (Wolfe Research): Questioned the shift in workflow mix and whether CRM and industry workflows will continue to grow as a percentage of revenue. Management expects continued progress in these workflows and emphasized that the quarter's mix shift was not due to pull-forward activity. Karl Keirstead (Evercore ISI): Asked if recent macro changes would alter the seasonality of short-term backlog growth. Gina Mastantuono responded that the expected shape of renewal and backlog flows remains unchanged despite ongoing macro dynamics. In the coming quarters, the StockStory team will be closely monitoring (1) the pace of customer adoption for Now Assist and other AI features, (2) the impact of federal sector procurement trends and any shifts in government budgets, and (3) integration milestones for Moveworks and Progress in expanding CRM and finance/supply chain workflows, as well as updates on large enterprise deal momentum, will also be key indicators of ServiceNow's ongoing execution. ServiceNow currently trades at a forward price-to-sales ratio of 14.6×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
