Market Overview

ServiceNow CEO Bill McDermott Says Company 'Hungry And Humble,' With $10B Ambitions

Share:
ServiceNow CEO Bill McDermott Says Company 'Hungry And Humble,' With $10B Ambitions

ServiceNow Inc.’s (NYSE: NOW) CEO Bill McDermott is confident the service desk software company will reach its goal of $10 billion in annual revenue, he said in an interview with MarketWatch.

McDermott, who was previously the CEO of SAP SE (NYSE: SAP) and joined ServiceNow last year, said the revenue target is "an aspirational goal of ours."

The company's first-quarter revenue totaled $1.05 billion. 

ServiceNow plans to increase revenue through subscriptions, which make up 95% of its earnings. In the first quarter of 2020, the firm registered 37 transactions worth more than $1 million in net new annual contract value.

New clients include Merck & Co. Inc. (NYSE: MRK), the state of California and other government agencies, according to MarketWatch.

In total, ServiceNow has 933 customers with more than $1 million in contract value, according to MarketWatch.

As more companies turn to technologies like cloud computing and artificial intelligence, it is expected that cloud computing market will grow to $7.4 trillion by 2024.

McDermott describes the culture at ServiceNow as “hungry and humble.” 

ServiceNow's Q1 Report 

ServiceNow, which joined the S&P 500 index in November, reported first-quarter results Wednesday.

Adjusted earnings per share of $1.05 beat a 95-cent Street estimate, and sales of $1.059 billion beat the $1.02-billion estimate. 

NOW Price Action

ServiceNow shares were up 10.62% at $356.80 at the time of publication Wednesday. 

 

Related Articles (NOW)

View Comments and Join the Discussion!

Posted-In: Bill McDermott MarketwatchEarnings News Movers Media Trading Ideas Best of Benzinga