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ServiceNow Inc NOW

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

ServiceNow Exudes Confidence in the Second Half of 2021 and Raises Guidance; FVE Up to $630

Dan Romanoff, CPA Equity Analyst

Analyst Note

| Dan Romanoff, CPA |

Wide-moat ServiceNow delivered strong results, including upside to revenue, remaining performance obligation, or RPO, and adjusted operating margin. We think third-quarter guidance is similarly good, as it came in better than our model and management remains upbeat about the pipeline in the second half of the year. In our view, the quarterly results reinforce our view that ServiceNow is benefitting from digital transformation efforts which are being pulled forward, as corporate IT infrastructures have often been exposed as insufficient in the current remote work environment. We believe results continue to support our thesis centering on the company’s land-and-expand strategy. ServiceNow continues to leverage its strength in workflow automation to penetrate existing customers more deeply in IT and more broadly with human resources and customer service-specific products.

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Company Profile

Business Description

ServiceNow Inc provides software solutions to structure and automate various business processes via a SaaS delivery model. The company primarily focuses on the IT function for enterprise customers. ServiceNow began with IT service management (ITSM), expanded within the IT function, and more recently directed its workflow automation logic to functional areas beyond IT, notably customer service, HR service delivery, and security operations. ServiceNow also offers an application development platform as a service (PaaS).

Contact
2225 Lawson Lane
Santa Clara, CA, 95054
T +1 408 501-8550
Sector Technology
Industry Software - Application
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Speculative Growth
Employees 13,096

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