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Exam Code: Servicenow-CIS-EM Practice exam 2022 by Killexams.com team
Servicenow-CIS-EM Certified Implementation Specialist - Event Mangement

The ServiceNow Certified Implementation Specialist – Event Management Exam Specification defines the purpose, audience, testing options, exam content coverage, test framework, and prerequisites to become Certified Implementation Specialist – Event Management certified.

Six (6) months field experience participating in ServiceNow deployment projects or maintaining ServiceNow instances
• Participation in at least two ServiceNow ITOM deployments specifically for Event Management
• Intermediate or above Windows and Unix administration skills
• Intermediate or above SNMP query knowledge
• Intermediate or above JavaScript and regular expression scripting skills
• Introductory or above network administration knowledge
• General familiarity with industry terminology, acronyms, and initialisms

Learning Domain % of Exam
1 Event Management Overview
• IT Operations Management (ITOM) solution
• Define customer challenges
• Event Management key features and capabilities
• Graphical user interfaces (operator workspace, alert intelligence, dependency maps)
• Common Service Data Model (business, application, and technical services)
13%
2 Architecture and Discovery
• Discovery and MID server architecture
• Event Management architecture and CMDB
• The monitoring process
• Install a MID server
13%

3 Event Configuration and Use
• Event setup (event processing, event rules, event filter, event thresholds, operator workspace)
• Event Management process flow (event table, message key, event processing jobs, event field mapping, CI binding, best practices)
• Connectors (preconfigured, customized)
• Scripting (Regex, JavaScript, PowerShell)
• Event Management Troubleshooting (event errors, credentials)
34%
4 Alerts and Tasks
• Alert defined (alert record attributes, scheduled jobs
• Alerts process flow (alert management rules, CI binding, priority scores, priority groups, incidents, best practices)
• Alert grouping (correlation rules, alert aggregation)
• Alert Intelligence
• Alert impact profile (impact tree, impact rules, cluster example, SLAs)
30%
5 Event Sources
• Identify event sources
• Push vs. pull methods
• Use inbound actions
• Configure a monitoring connector
10%
Total 100%

Exam Structure
The exam consists of approximately (30) questions. For each question on the examination, there are multiple possible responses. The person taking the exam reviews the response options and selects the most correct answer to the question.
Multiple Choice (single answer)
For each multiple-choice question on the exam, there are at least four possible responses. The candidate taking the exam reviews the response options and selects the one response most accurately answers the question.
Multiple Select (select all that apply)
For each multiple-select question on the exam, there are at least four possible responses. The question will state how many responses should be selected. The candidate taking the exam reviews the response options and selects ALL responses that accurately answer the question. Multiple-select questions have two or more correct responses.
Exam Results
After completing and submitting the exam, a pass or fail result is immediately calculated and displayed to the candidate. More detailed results are not provided to the candidate.

Certified Implementation Specialist - Event Mangement
ServiceNow Implementation test
Killexams : ServiceNow Implementation test - BingNews https://killexams.com/pass4sure/exam-detail/Servicenow-CIS-EM Search results Killexams : ServiceNow Implementation test - BingNews https://killexams.com/pass4sure/exam-detail/Servicenow-CIS-EM https://killexams.com/exam_list/ServiceNow Killexams : ServiceNow: Outlook For 2023
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kontekbrothers

When attempting to look further out into ServiceNow's (NYSE:NOW) 2023 outlook, the most exact quarter offers a glimpse into what the next year could look like.

Investment thesis

For investors looking to invest in long-term secular trends, I think that ServiceNow is a company that is relatively defensive in the current challenging macroeconomic environment that also offers a long-term organic growth opportunity.

The company looks poised to grow its core IT service management and operations business, while leveraging on the strong customer base it has built to expand into new cross-selling and upselling opportunities in the newer employee workflow, customer workflow and creator workflow segments.

At the same time, ServiceNow looks well positioned for strong growth in profitability as the company benefits from a cost structure that improves with increasing economies of scale and sales efficiency. The management continues to expect that their 2026 subscription revenue target of $16 billion plus can be met, this implies a substantial revenue growth opportunity until 2026.

Over time, I am of the view that ServiceNow's operating margins will expand and approach to the levels of the best-in-class software companies. With both revenue growth and improving profitability, the company is poised to become a best-in-class software company.

I have written an earlier article on ServiceNow about the company's defensiveness and long-term organic growth potential.

Execution and guidance provide confidence for 2023

In general, what we saw in the exact third quarter results gave me increased confidence in the company's execution and that things are actually not as bad as the market thinks it to be.

The cRPO for 3Q22 achieved a 150 basis points beat with the 25% year on year growth that it came in at, compared to the guidance of 23.5%.

The beat of 150 basis points warrants further analysis as they mainly came from Federal, and a slight pull forward of the 4Q22 renewal cohort. For reference, this was the best quarter ever for Federal as there was a $20 million deal and a few $10 million new ACV deals. In addition, the pull forward of the 4Q22 cohort to the third quarter was an intentional move and contributed to 50 basis points of the beat.

This showed me that management is able to execute well even as the company faces tough macro challenges. The macro environment remains challenging as management continued to point towards deal spillage continuing and some new businesses being pushed to 2023. I expect that the guidance for 4Q22 already incorporates the weakness in the macro environment and the expectation that management expects further deal spillage and new businesses being pushed to the next year, and furthermore, 2023 guidance will also incorporate some form of weakness as a result of the macro environment. In addition, I like that the deal execution in the 3Q22 quarter was quite encouraging, with the Manufacturing industry seeing strong growth as a result of a large 8-digit deal, while Retail and Hospitality saw 50% year on year growth. In addition, EMEA did really well in the 3Q22 quarter as well, giving further assurance that the deal environment in Europe remains resilient despite the macroeconomic environment.

While I acknowledged that the macro environment remains challenging, I think that the combination of a better managed guidance and idiosyncratic opportunities driven by strong management execution does provide further confidence in the company's abilities to navigate 2023.

Guidance bodes well for 2023

With 50 basis points of pull forward from 4Q22 to 3Q22, I would have expected the guidance to remain reiterated. However, management guided that cRPO growth for 4Q22 to accelerate by 100 basis points to 26% growth year on year. This was a 50-basis point beat to the 4Q22 guidance for cRPO growth.

In particular, I thought it helped Improve investor sentiment especially for 2023 as management said in the 3Q22 earnings call that their confidence in the fourth quarter extends to the next year. Furthermore, management stated that the current sales capacity and pipeline coverage are actually better and higher today than at any point in the year of 2022. This does provide me increasing confidence in the deal environment and demand landscape for ServiceNow despite the fears of deals slippages and poor market environment.

4Q22 will be a large renewal cohort for ServiceNow and the management's pull forward of some of those helped to de-risk the numbers for the next quarter. For 4Q22, management still expects to continue to momentum of 98% renewal rate in the quarter, which should be at a similar pace to 3Q22.

In addition, I liked that subscription revenue guidance on a constant currency basis was raised by 50 basis points and is expected to grow by 26% to 27% year on year, which is back to 1Q22 levels. Furthermore, management reiterated full-year operating margins although they experienced 100 basis points of incremental FX pressure. That said, free cash flow margins fell on FX headwinds as well as some additional payment timing impacts.

Macro impact in 2023

I am of the view that 3Q22 results and the earnings call commentary sounded more positive than the prior quarter, when the management actually lowered outlook and mentioned deal delays.

This quarter in 3Q22, they focused more on deals getting pulled forward from 4Q22, while Europe was surprisingly strong and comments that the management sees outlook improving.

That said, management reiterates that the demand backdrop is unchanged, with continued expectations of deal delays in 4Q22. However, the company has better visibility on the business now and the guidance has been reset and takes into account the deal delays and current renewal rates we are seeing. With guidance being reset higher, this also implies that the beat that we might see in 4Q22 might be smaller than in 3Q22.

In addition, with an incremental FX headwind of 100 basis points on operating profit margins and free cash flow margin in 2022, I expect that we can expect free cash flow margin to Improve 100 basis points in 2023.

Valuation

Based on both DCF method and EV/FCF multiple method, I equal weight both methods to derive my value for ServiceNow. My assumptions for 2023 include an EV/FCF multiple of 30x for 2023 and a 10% discount rate. As management has mentioned about deal delays and difficult macro in 4Q22 and 2023, I incorporated the conservatism into 2023 to de-risk my forecasts to take into account the challenging macro backdrop.

My 1-year target price for ServiceNow is $531, implying 28% upside from current levels. As ServiceNow has a stronger growth profile and a strong track record of achieving this, as well as its best-in-class renewal rates, I think that the company should trade at premium multiples over peers.

Risks

Competitive pressures

Competition is fierce in the industry in which ServiceNow operates in. Even as a leader in its core ITSM offering, the company faces threats from new entrants into the industry, as well as deep pocket competitors in the industry that wants to expand and grow. These competitors may grow meaningfully and compete with ServiceNow's offerings. This could be detrimental for ServiceNow as its core segment serves as its anchor and differentiating factor that has enabled the company to up-sell and cross-sell over the years. There are other well capitalized competitors like Microsoft (MSFT) and Atlassian (TEAM) that compete with ServiceNow in the ITSM market, with the potential to increase competitive pressures in the industry.

Furthermore, ServiceNow is looking to expand into other workflows, and to be able to gain market share in these segments, it needs to compete with the current incumbents there, who all have their own differentiating factors.

Macro backdrop

With ServiceNow's core ITSM segment seen as a relatively defensive software segment as IT department budgets remain resilient. If the macro backdrop were to show further signs of worsening, this will definitely impact ServiceNow. This may show itself through a slowdown deal flow and slow growth rate for the company.

Execution risk

I highlighted earlier in the article that ServiceNow has shown strong execution, but the company needs to continue that or risk losing its premium multiple attached to it. Management needs to continue to show that they are able to execute well, deliver growth even in difficult macro conditions.

Conclusion

For 2023, while the global macro backdrop remains uncertain, I think that the outlook for ServiceNow looks good. Management is showing strong execution that helps to offset the weak macro backdrop. At the same time, guidance has been de-risked as management has taken into account potential deal slippages and delays into the forward guidance. The fundamentals are also improving as the deal environment continues to look resilient while the pipeline coverage has improved to the best it has been all year. If 2023 turns out better than expected in terms of the macro backdrop, ServiceNow is well positioned to capitalize that. If not, the company remains committed to execute well amidst difficult markets to continue to perform well in the long-term. My 1-year target price for ServiceNow is $531, implying 28% upside from current levels.

Author's note: I am starting a marketplace service, Outperforming the Market, which will be launching on 10 Jan 2023. Outperforming the Market aims to help investors identify high conviction growth and value stocks to form a barbell portfolio that outperforms the market.

Mark your calendars, because early subscribers can reserve a spot as a Legacy Discount Member, which gives you generous introductory prices. Thank you for studying and following my work. See you there!

Wed, 30 Nov 2022 19:40:00 -0600 en text/html https://seekingalpha.com/article/4561657-servicenow-stock-outlook-for-2023
Killexams : Local Governments Connect Services, Deploy Automation with ServiceNow

ServiceNow Connects Departments on One Platform in Chicago 

State and local government customers benefit from a platform that can quickly provision IT services internally to customers — their employees — and externally to citizens.

Chicago Public Schools and the city of Chicago engaged ServiceNow through CDW. The school system created an instance in the Illinois Department of Children and Family Services and connected it with CPS. The goal was to enable DCFS to communicate with CPS in a way that’s safe and secure so the two departments could ensure support for teachers and families. 

As a result, people who need social services who are connected with CPS can access DCFS services. Thanks to ServiceNow, both students and schools can benefit from resources available through the city thanks to ServiceNow.

EXPLORE: How localities are using federal grants for IT modernization.

ServiceNow Automates Repetitive Tasks in Denver

Government agencies routinely deal with a large volume of data, and laborious or repetitive tasks can quickly eat up time. As a result, solutions that streamline operations while maintaining accuracy and efficiency are valuable to state and local governments. 

Automation can help. Agencies can apply ServiceNow’s automation capabilities across a wide range of tasks. The automation engine is designed to integrate with other popular platforms and the capability can be built in with minimal coding.

For example, the city of Denver uses ServiceNow to automate its government, risk and compliance processes. Part of the solution involves making it easier for the city’s vendors to fill out a GRC survey. City administrators can choose among 300 questions to create a survey that includes about 125 of the most relevant questions for each vendor. With this process, the city has reported a 66 percent reduction in survey response time.

“We now get responses back in two weeks or less, instead of six — one third of the time — and ServiceNow automatically scores them for us, so we’re not constantly buried in reviews,” says Information Security Manager Julie Sutton. “Our internal clients get much faster turnaround when they need to onboard a new vendor, and our vendors are far happier as well.”

READ MORE: Asset management is a must for successful continuous management.

Denver’s Integration of Additional City Services with ServiceNow

Denver’s ServiceNow solutions have also enhanced its call center experience. With the city’s ServiceNow instance connected to Amazon Connect, information pops up automatically in the calling system. 

The reporting and analytics contained in the city’s ServiceNow instance automatically populate in ServiceNow. This saves Denver’s civil servants a lot of time and frustration.

Say I’m a Denver employee; if I call the help desk, my call actually hits Amazon’s cloud resources. All of my user information, housed in an employee profile, is immediately available to the help desk, which doesn’t have to take the time to ask me certain questions — they already have the information.

CDW’s eProcurement system can connect with ServiceNow’s asset management capabilities. CDW can upload hardware information directly to a customer’s ServiceNow asset management system. So, anything that's purchased through CDW will automatically be put into the portal.

This, of course, prepares ServiceNow to connect to any COTS products — a win-win for state and local governments.

This article is part of StateTech’s CITizen blog series. Please join the discussion on Twitter by using the #StateLocalIT hashtag.

CITizen_blog_cropped_0.jpg

Wed, 30 Nov 2022 10:03:00 -0600 Stephanie Bishop en text/html https://statetechmagazine.com/article/2022/11/local-governments-connect-services-deploy-automation-servicenow
Killexams : ServiceNow (NYSE: NOW)

ServiceNow, Inc. (NOW) Q3 2022 Earnings Call Transcript

NOW earnings call for the period ending September 30, 2022.

Motley Fool Transcribing  |  Oct 26, 2022

ServiceNow, Inc. (NOW) Q2 2022 Earnings Call Transcript

NOW earnings call for the period ending June 30, 2022.

Motley Fool Transcribing  |  Jul 27, 2022

Service Now (NOW) Q4 2021 Earnings Call Transcript

NOW earnings call for the period ending December 31, 2021.

Motley Fool Transcribing  |  Jan 27, 2022

Service Now (NOW) Q3 2021 Earnings Call Transcript

NOW earnings call for the period ending September 30, 2021.

Motley Fool Transcribing  |  Oct 28, 2021

Tue, 06 Dec 2022 20:24:00 -0600 en text/html https://www.fool.com/quote/nyse/now/
Killexams : Looking At ServiceNow's exact Unusual Options Activity

Someone with a lot of money to spend has taken a bullish stance on ServiceNow NOW.

And retail traders should know.

We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.

Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with NOW, it often means somebody knows something is about to happen.

So how do we know what this whale just did?

Today, Benzinga's options scanner spotted 14 uncommon options trades for ServiceNow.

This isn't normal.

The overall sentiment of these big-money traders is split between 78% bullish and 21%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $292,350, and 9 are calls, for a total amount of $338,800.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $360.0 to $500.0 for ServiceNow over the last 3 months.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for ServiceNow's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of ServiceNow's whale trades within a strike price range from $360.0 to $500.0 in the last 30 days.

ServiceNow Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

 

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
NOW PUT TRADE BEARISH 11/25/22 $450.00 $160.0K 34 33
NOW CALL SWEEP BULLISH 12/02/22 $387.50 $53.3K 159 95
NOW CALL SWEEP BULLISH 12/02/22 $387.50 $50.7K 159 25
NOW CALL SWEEP BULLISH 12/02/22 $425.00 $45.0K 368 316
NOW CALL SWEEP BULLISH 12/02/22 $387.50 $42.2K 159 50

Where Is ServiceNow Standing Right Now?

  • With a volume of 504,734, the price of NOW is up 1.09% at $404.64.
  • RSI indicators hint that the underlying stock may be approaching overbought.
  • Next earnings are expected to be released in 63 days.

What The Experts Say On ServiceNow:

  • Credit Suisse has decided to maintain their Outperform rating on ServiceNow, which currently sits at a price target of $600.
  • Mizuho has decided to maintain their Buy rating on ServiceNow, which currently sits at a price target of $500.
  • Morgan Stanley has decided to maintain their Overweight rating on ServiceNow, which currently sits at a price target of $520.
  • BMO Capital has decided to maintain their Outperform rating on ServiceNow, which currently sits at a price target of $475.
  • Wolfe Research has decided to maintain their Outperform rating on ServiceNow, which currently sits at a price target of $475.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for ServiceNow, Benzinga Pro gives you real-time options trades alerts.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Wed, 23 Nov 2022 05:25:00 -0600 text/html https://www.benzinga.com/markets/options/22/11/29843963/looking-at-servicenows-recent-unusual-options-activity
Killexams : Is There Now An Opportunity In ServiceNow, Inc. (NYSE:NOW)?

Let's talk about the popular ServiceNow, Inc. (NYSE:NOW). The company's shares saw a decent share price growth in the teens level on the NYSE over the last few months. As a large-cap stock with high coverage by analysts, you could assume any exact changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Today I will analyse the most exact data on ServiceNow’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for ServiceNow

What's The Opportunity In ServiceNow?

Great news for investors – ServiceNow is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $557.18, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, ServiceNow’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

Can we expect growth from ServiceNow?

earnings-and-revenue-growth

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. ServiceNow's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since NOW is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on NOW for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy NOW. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. At Simply Wall St, we found 1 warning sign for ServiceNow and we think they deserve your attention.

If you are no longer interested in ServiceNow, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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Tue, 06 Dec 2022 23:09:00 -0600 en-US text/html https://finance.yahoo.com/news/now-opportunity-servicenow-inc-nyse-120042635.html
Killexams : ServiceNow (NOW) Stock Moves -0.79%: What You Should Know

ServiceNow (NOW) closed at $389.15 in the latest trading session, marking a -0.79% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.44%. Meanwhile, the Dow lost 1.03%, and the Nasdaq, a tech-heavy index, lost 0.11%.

Prior to today's trading, shares of the maker of software that automates companies' technology operations had gained 8% over the past month. This has lagged the Computer and Technology sector's gain of 11.26% and outpaced the S&P 500's gain of 6.22% in that time.

Investors will be hoping for strength from ServiceNow as it approaches its next earnings release. The company is expected to report EPS of $2, up 36.99% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.93 billion, up 19.82% from the prior-year quarter.

NOW's full-year Zacks Consensus Estimates are calling for earnings of $7.32 per share and revenue of $7.24 billion. These results would represent year-over-year changes of +23.65% and +22.8%, respectively.

Investors might also notice exact changes to analyst estimates for ServiceNow. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. ServiceNow is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 53.59 right now. For comparison, its industry has an average Forward P/E of 24.58, which means ServiceNow is trading at a premium to the group.

Investors should also note that NOW has a PEG ratio of 1.9 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 1.33 at yesterday's closing price.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ServiceNow, Inc. (NOW) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Tue, 06 Dec 2022 12:30:00 -0600 en-US text/html https://finance.yahoo.com/news/servicenow-now-stock-moves-0-225010756.html
Killexams : Multiple Headwinds Dragged ServiceNow (NOW) Shares in Q3

Aristotle Atlantic Partners, LLC, an investment advisor, released its “Core Equity Strategy” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund posted a return of -4.92% gross of fees compared to -4.88% return for the S&P 500 Index. The fund’s underperformance in the quarter was primarily because of the stock selection. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Aristotle Atlantic highlighted stocks like ServiceNow, Inc. (NYSE:NOW) in the Q3 2022 investor letter. Headquartered in Santa Clara, California, ServiceNow, Inc. (NYSE:NOW) is a software company that provides enterprise cloud computing solutions. On November 23, 2022, ServiceNow, Inc. (NYSE:NOW) stock closed at $409.37 per share. One-month return of ServiceNow, Inc. (NYSE:NOW) was -1.52% and its shares lost 36.95% of their value over the last 52 weeks. ServiceNow, Inc. (NYSE:NOW) has a market capitalization of $82.693 billion.

Aristotle Atlantic made the following comment about ServiceNow, Inc. (NYSE:NOW) in its Q3 2022 investor letter:

“Underperformance in the third quarter can be attributed to ServiceNow, Inc. (NYSE:NOW)’s slight miss on the second quarter earnings and guidance that was lower than expected for its third quarter outlook. The company is facing headwinds from the weaker macroeconomic conditions and a tempered outlook resulting from elongated sales cycles and an overall slowing software spending environment. These worsening conditions were highlighted by many software companies during the second quarter earnings season. We expect this to be temporary for ServiceNow where the long-term thesis of the company’s platform strategy and relevance to digital transformation strategies remains intact. The stock was also likely impacted by the rapid increase in interest rates during the third quarter and the resulting contraction of multiples on high-growth software stocks.”

ServiceNow, Inc. (NYSE:NOW) is in 16th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 103 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of the third quarter, which was 99 in the previous quarter.

We discussed ServiceNow, Inc. (NYSE:NOW) in another article and shared Lakehouse Capital’s views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

Disclosure: None. This article is originally published at Insider Monkey.

Mon, 28 Nov 2022 04:39:00 -0600 en-US text/html https://www.insidermonkey.com/blog/multiple-headwinds-dragged-servicenow-now-shares-in-q3-1090509/
Killexams : ServiceNow (NOW)’s Revenue Grew 29% Year-Over-Year in Q3

Lakehouse Capital, an investment management company, released its “Lakehouse Global Growth Fund” October 2022 monthly letter. A copy of the same can be downloaded here. October was a busy month for the fund, and it returned 3.4% net of fees and expenses compared to a 6.6% return for the MSCI All Country World Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Lakehouse Capital discussed stocks like ServiceNow, Inc. (NYSE:NOW) in the October 2022 monthly letter. Headquartered in Santa Clara, California, ServiceNow, Inc. (NYSE:NOW) is a software company that provides enterprise cloud computing solutions. On November 14, 2022, ServiceNow, Inc. (NYSE:NOW) stock closed at $400.40 per share. One-month return of ServiceNow, Inc. (NYSE:NOW) was 12.22%, and its shares lost 42.18% of their value over the last 52 weeks. ServiceNow, Inc. (NYSE:NOW) has a market capitalization of $80.881 billion.

Lakehouse Capital made the following comment about ServiceNow, Inc. (NYSE:NOW) in its Q3 2022 investor letter:

“Despite a challenging environment, US-based software company ServiceNow, Inc. (NYSE:NOW) performed well and reported revenues of $1.8 billion for the quarter, up 29% year-over-year in constant currency terms. The company’s operational metrics continue to be resilient, with remaining performance obligations growing 25% yearon-year in constant currency terms, total customers with over $1 million in annual contract value (ACV) growing 22%, and renewal rates holding firm at 98%. Performance was evenly spread across segments, products, and geographies, with notable strength in the US federal, which had its best quarter ever including a $20 million-plus net new ACV win. The company now boasts 1,530 customers generating in excess of $1 million in ACV, which is pleasing to see as it implies multiple solutions are involved and that the company’s platform model is increasingly resonating with customers. We continue to believe that ServiceNow is one the highest quality software businesses around as the combination of consistent growth at scale, robust free cash flow generation and a large addressable market make it a compelling opportunity.”

ServiceNow, Inc. (NYSE:NOW) is in 16th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 99 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of the second quarter which was 90 in the previous quarter.

We discussed ServiceNow, Inc. (NYSE:NOW) in another article and shared the best growth stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.

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Killexams : enosix Launches No-Code SAP Integration for ServiceNow® Operational Technology Management with App Certification from ServiceNow

No-code integration empowers SAP manufacturers to quickly gain a complete view of their operational technology assets in context of their production process; eliminating spreadsheets, manual data entry, and inaccuracies to support the agile digital transformation requirements of today's modern manufacturer.

CINCINNATI, Nov. 15, 2022 /PRNewswire/ -- enosix, the standard in real-time SAP ERP data integration, today announced the release of their enosix SAP Service Graph Connector for ServiceNow® Operational Technology Management (OTM) now available in the ServiceNow Store as "Service Graph Connector for SAP Plant Maintenance (PM)." This Packaged Integration Process (PIP) enables OTM customers to receive complete SAP integration without designing, coding, or training required.

enosix SAP Service Graph Connector for ServiceNow® Operational Technology Management (OTM) now available in the ServiceNow Store as “Service Graph Connector for SAP Plant Maintenance (PM).”

enosix Launches No-Code SAP Integration for ServiceNow® Operational Technology Management with App Certification from ServiceNow

"enosix is excited to announce this new integration with ServiceNow. We recognize that ERP modernization is a predominant challenge for SAP manufacturers. According to Gartner, currently only 14% of SAP ERP customers have gone live with S/4HANA, yet manufacturers require modern front-end technologies to keep them agile and competitive. The enosix SAP Service Graph Connector for OTM can integrate with ECC immediately and then translate onto S/4HANA when ready for migration later" said enosix CEO, Nick Fera.

The enosix proprietary API framework is an SAP certified application running in a client's instance of SAP, supporting both ECC and S/4HANA ERP systems. This integration leverages a client's legacy ERP system and customization, enabling ServiceNow Operational Technology Management modern front-end solution; no-code integration can help customers with customized SAP ERP solutions to implement ServiceNow Operational Technology Management more quickly.

For ServiceNow OT and enosix customers, data integration with SAP will save 70%+ time to implementation verses traditional integration with 100% data accuracy when implementing ServiceNow Manufacturing Process Manager, jump-starting the process of OT Service Mapping, Process Criticality, and OT VR Risk Calculations, as well as other equipment information from SAP.

"ServiceNow is leading the future of work by creating great experiences for our industrial customers," said Bradley Owen, Director of Product Management, Operational Technology (OT) at ServiceNow. "We are pleased to have enosix bring its innovative technology to bear to make it easy to integrate with SAP Plant Maintenance (PM), to add the production process context to OT workflows, and accelerate time to value and reduce risk for our joint customers."

ServiceNow OT customers are encouraged to learn more about the SAP Service Graph Connector for OT on the enosix ServiceNow Partner Page.   

About enosix, Inc

enosix is the standard in real-time SAP ERP integration. Through seamless real-time data virtualization, enosix empowers enterprise organizations to drive a more agile and compliant customer experience by reducing error-prone swivel-chair data entry and information delays that can hurt customer retention. Instead, enosix seamlessly connects SAP ECC and S/4HANA systems to modern front-end systems of engagement to include: ServiceNow OTM, Salesforce Cloud Solutions, and more, to support rapid digital transformation. Pending S/4HANA migration, the integration logic translations can be implemented with ECC and later easily leveraged for S/4HANA. The enosix platform leverages low or no-code, Prepackaged Integration Processes (PIP) that enable companies to quickly realize value—in weeks instead of months. enosix' use of data virtualization unlocks data, business processes, authorizations, and user permissions from SAP without recreating them from the front-end; delivering the back-end translation in an easy-to-understand, real-time, and bi-directional integration. For more information, visit www.enosix.com

ServiceNow, the ServiceNow logo, Now, Now Platform, and other ServiceNow marks are trademarks and/or registered trademarks of ServiceNow, Inc. in the United States and/or other countries.

For media inquiries contact:

Loren Shumate

loren.shumate@enosix.com

Real-time data virtualization between SAP ERP and front-end systems of engagement such as Salesforce, ServiceNow & more

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SOURCE enosix

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Killexams : ServiceNow, Inc. (NOW) Presents at Credit Suisse 26th Annual Technology Conference (Transcript)

ServiceNow, Inc. (NYSE:NOW) Credit Suisse 26th Annual Technology Conference November 30, 2022 4:20 PM ET

Company Participants

CJ Desai - Chief Operating Officer

Conference Call Participants

Philip Winslow - Credit Suisse

Philip Winslow

All right. Welcome everyone to the 26th Annual Credit Suisse Technology Conference. My name is Phil Winslow, one of the software analysts here. Excited to have long time friend CJ Desai from ServiceNow joining us, also one of my long-time favorite stock. So this is going to be a great session.

CJ Desai

Thank you. Thank you. Thanks for inviting us.

Philip Winslow

And then like I said, I was saying, I know it's a super busy time of the year in Q4. So I know everybody here particularly appreciate you taking the time out to fly down.

Question-and-Answer Session

Q - Philip Winslow

I guess we'll start with a question that I think it's been on everybody's mind. I'm sure it's come in every one-on-one you've had it before this. But in light of sort of the macroeconomic environment and certainly sort of the various headwinds, you obviously spent a lot of time, I remember we were talking about this back in May at the conference with customers speaking with them. What -- how are priorities changed? And where are you seeing strength and resiliency compared to, let's say, the beginning of the year? And why are people saying, "Hey, look, I need to invest in ServiceNow now?"

CJ Desai

Makes sense. So I would say at the highest level, it is absolutely true that I do spend a lot of time with our customers. And in fact, before coming to Arizona, I spent two days in Florida, various parts of Florida with some large and midsized corporations. One of them is not an existing ServiceNow customer and others are ServiceNow customers.

I would say the first -- at the highest level, what is resonating for ServiceNow and as you saw in our Q3 results is workflow automation. It's a simple concept, but what you find is when you go in and you talk about ServiceNow platform's value and what it does for the technology foundation, we are technology workflows or for customer service workflows whatever the case might be, the automation, productivity and trying to get more things done with less is actually resonating really well.

And specifically, Phil, I would provide an example of something like we have this great product called Asset Management. In 2017, it came out, which was software asset management, then we upped the ante with hardware asset management in 2020, then we just launched enterprise asset management. With enterprise asset management, software asset management, hardware asset management, there is a hard dollar savings. So whenever we can articulate hard dollar savings, doesn't matter what the industry or geography is, that automation and productivity is what is resonating for ServiceNow.

Philip Winslow

Got it. Well, let's break this down. And I really want to spend time focusing on product. Let maybe start first with platform, then we'll go into the other areas. Now -- and thinking about, call it, core ITSM, workflows, HR workflows, creator workflows, et cetera. How is the platform approach really been resonating with customers, particularly as your point, in light of this macroeconomic environment?

CJ Desai

Yes. So one of the things that is a consistent theme this year as things got tough in the environment with customers. One of the first things even we had dinner in Sarasota with a customer on Monday night. And the customer said, "You know, CJ, why I'm doing this meeting with you?" I said, "Okay, maybe it's because of me." That's not the case. He basically said, "I'm only meeting our strat platforms. I'm only meeting the companies where the platform is critical to our business." And this company has 250,000 employees, a large, large organization. And he said, "I have basically cut down every vendor meeting and only my seven strategic platforms, I meet with them. Hence, I'm meeting you and figure out how we can do more with you in certain areas" specific to that customer. So this platform message will, in terms of enterprise-wide platform that is focused on automation and rather than doing point solution, how can we do more with ServiceNow is resonating is number one.

And number two, with our products, if you are using our security product and if you're using our risk product, which are built on the same platform, so once you have a center of excellence for ServiceNow platform, it is easier to get incremental value and also faster and that is also resonating really well. But if I'm using ITOM in addition to ITSM, now I get even more value out of ITSM because ITSM and ITOM are two sides of the same coin from a technology or service operation standpoint.

Philip Winslow

That makes sense. And then one more question just on the platform's high level before we drill in. But to what extent do you think we're starting to reach a tipping point where customers are coming to ServiceNow for the platform versus maybe in the past, it was for a specific product.

CJ Desai

I would say, if you remember, Fred Larry when he created this company, he actually said I built a platform. And most investors and customers do not know that ITSM was actually the first demo that we did on the platform. So we are still the platform at the core of it is still a great platform. Yes, we have added machine learning, process mining and many other capabilities in the platform. But right now, I would say, finally, customers are understanding that it's the same horizontal platform, but for a particular use case. So I would tell you that it is still not a platform sale for us.

We still have to show that the outcomes that the customers will get -- and I think ServiceNow does a really nice job. And customers tell me that. Here is the outcomes you're going to get and here is how fast you're going to get this outcome. The days of multiyear implementation cycles are gone. And especially in this environment, hey, CJ, can I get the value in four months from now or six months from now? So that's resonating more for a particular use case rather than here is a platform, let me sign an ELA we are seeing that customers do not want to do that. Customers still want to know, I need to automate these three things, how fast can I do it and how fast can I get the value?

Philip Winslow

I remember during the IPO process when we were on the deal, Fred Luddy was up there telling the history and the story was like I built this PaaS, but he was like, it's really hard to sell a PaaS, especially when there's nothing else on that PaaS? So what did I know how to build, got to build helpdesk tools. And so I did that. And the next thing you know, it became the company.

CJ Desai

And that's still true. We cannot sell PaaS.

Philip Winslow

Yes, you can't sell it. You have to sell a use case, you got to sell value, but it helps it was all one platform.

CJ Desai

Correct.

Philip Winslow

So let's talk about ITSM. I mean at the Investor Day earlier this year, you talked about 30% ITSM Pro SKU penetration. So in other words, there's still innovation even in the core product. It's been around for a long time. So what is driving this increased adoption? Can you help us understand maybe the longer-term vision of the potential ITSM Pro, Pro+, Enterprise, et cetera?

CJ Desai

So if you remember, Phil, and ITSM was our first use case on the platform and, of course, the bread and butter of the company. And many folks thought when we went public 10 years ago, as you know, that market was $1 billion to $1.5 billion tops, and we may get 20%, 25% share of it. Well, that's not true. It hasn't played out that way.

What is encouraging to me is, one, in 2018 fall, when we came up with ITSM Pro, I said we will put virtual agent or automation, machine learning-driven automation, performance analytics, continuous improvement. Those type of added features in ITSM, and that will drive the Pro adoption. So what we saw with our sales team is when they land a new logo or a new customer, they now almost always land with ITSM Pro. And for existing customer cohort, which is typically over 3.5 years, you turn over the entire cohort, you find if they get enough sales cycle time, they try to sell Pro to existing customers, right?

So we are on a good track. We should every year, 10 additional points in terms of the penetration. And I would want it by 2024 to be around 50%. But now with ITSM Enterprise coming in, which has both workforce and process optimization, just recently, we did a nice size transaction with a large company for ITSM Enterprise. So that has started getting traction as well.

So the strategy is very simple for existing customer base, ITSM Standard, ITSM Pro, ITSM Enterprise. And there is a lot of innovation and still the engineering team on ITSM is pretty large because we want it to be a world-class product.

One last thing I would say that you heard me say at the Investor Day, $100 million in revenue, and 1,000 employees plus, that's our target market for ITSM. And if you exclude China, where we do not do business, we are currently penetrated 15% on ITSM.

Now you'll say, okay, CJ, 15%. So why is that traction not higher given that this is a market-leading product, Gartner Magic Quadrant and all that? The thing is because of our portfolio, as you have seen from Gina, that when a sales rep has a choice to upsell additional modules like HR customer service versus going hunt for new logo, especially during the pandemic, they went for upsell.

So we are now trying to change some incentive beginning in 2023 so that they will go after the new logos as well.

Philip Winslow

Yes. Obviously, you did your job too well, too much product. I'm joking. I mean the portfolio has gotten so big and the velocity of it, to your point, you can just sell that expanded portfolio into existing customers.

CJ Desai

And there is enough to sell and the bag is always full.

Philip Winslow

Exactly. And getting fuller. And so let's stay in the IT world, but we shift gears a little bit, ITOM observability. You may have had obviously a significant amount of success in ITOM. That was sort of the first thing outside of ITSM that you got into. Can you talk about some of the dynamics here that have made ServiceNow successful in making this move over? What's resonating with customers versus, let's say, computing solutions here?

CJ Desai

Yes. So I would say if you ask Fred, our founder, why did he create ITOM, he would say it was a really good moat around ITSM. And some of the competitors that Fred was competing with in the early part of this century, you needed both ITSM and ITOM. ITOM is doing really well for us. And I am really, really proud of what the team has done from an innovation perspective.

But what is driving ITOM growth? Every single CIO has three simple questions: Where are my assets, compute network storage. How are they doing? And what applications are built on those assets? That simplicity of message on ITOM whether you have gone with Azure or AWS or a GCP and/or Oracle Cloud. And you would not believe this, Phil. If you asked me this six years ago when I joined ServiceNow, I would have not guessed it. Right now, 1,400 ITSM customers are using ITOM specifically for public cloud discovery.

So some people have just 1 public cloud, whatever it is that their preference choice, say, it's Microsoft. Some will have multiple. Some are saying, for Oracle workload, we are the only game in town, which will allow you to discover these assets across this multiple cloud environment so that CIO to the regulators to whoever for audit can say where my assets are. So the discovery portion of ITOM in this multi-cloud world has just accelerated ITOM business.

And number two, then event correlation, making sure that digital services are resilient, and that specific second vector where we work with all other observability players or Splunks of the world and so on, has driven the second part of it. But this cloud transformation has been a tailwind. And whether even -- I'll tell you one last example, a bank that has a very aggressive plan to move to public cloud over five years. Then they realize it's a lot harder than they thought. So they are -- in the second year, the CTO told me, and they're already one year behind. So in that case, ITOM is still a beneficiary because we are still going to provide you all the asset and the orchestration across your multiple cloud. So that's why ITOM, whether you have a public cloud tailwind, public cloud headwind is still a beneficiary.

Philip Winslow

Those are amazing anecdotes and data points. Let's pivot a little bit to observability. Obviously, you acquired Life last year, more recently, you acquired Around your lot of capabilities. Can you walk us through the challenges that customers are coming to you with that you're addressing. Can you walk us through sort of just the broader ITOM and observability plans?

CJ Desai

Okay. So for observability, when you look at this market, the specific observability market, all of you will say, it's a crowded market. We get it. It's a crowded market. But the market has been around for a long time, right, in '80s, '90s, and Phil, you cover some of those stocks, it has gone through multiple transition. This is our conviction that every 10-year application architecture shift.

And if you now talk to banks, they are building a lot more things on cloud native, like -- so what we liked about Lightstep is Lightstep was for cloud native architectures at Spotify. And those kind of leading brands, they were the tracing solution. Then they added metrics last year. And the reason we did this exact acquisition is that now it adds logs. So you have metrics, traces and logs for cloud-native architecture. And over the next few years, as the application architecture shift, we will be the beneficiary of it.

So we are in the early innings of it right now. But I will tell you, just recently, we won -- we had a technical win at a very large bank that uses seven levers of observability. And they said for cloud native, we beat every single one of them, and they provide the business to Lightstep and then Lightstep integrates well into ITOM that they were already using. So that's basically the play.

Philip Winslow

Yes, it all comes together. Okay. Let's switch gears to get a little bit greater workloads. Obviously, once again, those places as a significant amount of traction. In fact, actually this last quarter, it was in all 20 of your top 20 deals. And so can you walk us through a similar thing, what's driving this sort of level of customer uptake amongst your biggest customer?

CJ Desai

Yes. So I think one of the biggest takeaway we had a few years ago, I want to say three, four years ago was our primary buyer is still IT. And line of business, all this talk about low core democratizing app dev, we found in regulated industry like financial services, health care, even government, CIOs did not like it. CIOs didn't like a department creating an app and have a PII data or a customer data in that app.

So we basically said, let's create a great low-code platform that is Fred always vision was to create a local platform, but we made it even simpler to create apps. But what we built in because we were solving for the CIO and these regulated industries is governance-related features. And then very easy for you to integrate with system or system wise. We are automation engine. And by the way, then we built in even RPA in it.

So overall, now you have a low-code platform where you create a low-code app pretty fast and integrate with other systems in your environment, while IT can still govern it. So we are not confused in trying to sell to a line of business buyer, we are actually relying on our champion, the CIO, and she's going to make sure it has the right governance features, but it also has amazing low-code features that she can take to line of business said, "Hey, if you really want to build an app for investment banking, great -- we built it on ServiceNow, and here is why it makes sense.

Philip Winslow

Got it. That makes a lot of sense. Now -- when you think about sort of just the vision now going forward, when you think about sort of new product development in greater workflows, what are you most focused on in terms of sort of related to R&D spending?

CJ Desai

So overall, R&D spending, as you have seen over the last couple of years, we are creating a lot of additional products. So one of the things that we created in 2018, which was now has been a phenomenal success, where we ring fenced that team and feel our unit cost economics are so good on R&D that even when we created the first telco product, and that's why you see our free cash flow margins and despite our revenue growth, our R&D cost is pretty reasonable. With two scrum teams, I can create a minimum viable product in 6 to 9 months because the platform provides user interface, machine learning, workflow, integration, all those services. So NowX was a massive success where we created all these industry vertical products. We created some of the asset management product and recently ERP area, where we created procurement operations management.

I have never seen a pipeline built that fast on that product that just came out in September. So from an R&D perspective, we are just trying to -- we don't want to replace system of action. That's too many calories to get $1. But can we do something we are a platform from a workflow perspective, on a source to pay, procure to pay, that's where we want to play. So that's where the R&D focus is besides the core of the core, whether it's in IT or HR or so on.

Philip Winslow

Yes, that makes a ton of sense. Okay. Let's talk about our customer employee workflows. I keep saying it, another area of success -- there’s a lot of areas of successes here. But let's start with CSM first. Maybe unpack the competitive dynamics here because like you talked about observability, people say, "Hey, look, this is a very competitive market, lots of strong incumbents" but you can continue to win big customers, big deals here. So like what's giving sort of ServiceNow sort of the right to win, so to speak?

CJ Desai

Yes. So I would say, first of all, customer service management is a massive can. And even though there are existing players with large businesses, there are still a lot of homegrown tools and systems in the largest of the largest enterprise. We started first seeing traction in tech. And tech is where people said, "Okay, ServiceNow was used by CIO, and I'm head of customer support, and I'm going to use it too because I need to deal with a lot of complex workflows depending on the type of the customer. So B2B tech, we did really well.

Then we found out telco is on the B2B side and now also on B2C, they said, oh, CIO is using it. We should use for customer service, especially B2B is -- if you look at top 10 telcos, they have significant business on the B2B side. So we started getting a lot of traction. And right now, I would say, top 10 telcos use some form of CSM for certain side of their customer service, which is just phenomenal. And then we started getting traction in government, state, city and federal government to citizen services, my unemployment check this and that.

So for these kind of opportunities, we are typically replacing a legacy system. Now if you go to financial services or bank, a bank may say, I already have a massive investment in company X. Then we say, what about the workflows for customer service for mid-office and back office. And they say, "Yes, I think ServiceNow can help us there." So we are an end to an existing incumbent in those financial services. And we have won a few deals where we end with an existing CRM provider. And when you go to the commercial segment of ServiceNow, which is 1,000 to 5,000 employees, and they want to have a brand-new solution for customer service. We go head on, fierce competition, dock fight against some of the current players and we win for those kind of use cases.

But we don't run the play, hey, you have invested six years into this solution, you should replace that with ServiceNow. That's not worth it. And as Gina shared on the Investor Day, all these businesses were employee and customer workflow, including creator what like $10-ish million in 2017, and they all crossed $0.5 billion last year.

Philip Winslow

Incredible, absolutely incredible. Well, you touched on it to employees. So HR service delivery, what about how you sort of call it, attack HR service delivery that's made ServiceNow so successful? Because a similar thing, there's -- the HCM market as a whole has a lot of core players to your point some records. But a similar thing, why are you winning in this space? What are you delivering that's different?

CJ Desai

I would say what we are delivering different is still boils down to our automation or workflow, right? So a large services company has 700,000 employees and 15% turnover. That's just a -- so you have 100,000 people joining and leaving at the same time.

When you want to have -- if your SLA is as simple as day 1 you want to be 98% ready with all systems access, security access, the laptop is provided on a desktop, whatever the case might be. Legal checks are done. These are a lot of cross-departmental. So we will make sure your octa provisioning is done. We will make sure that you get credential tokens from whoever.

And so IT, security, facilities those workflows, HCMs cannot do. That's it. Literally, that's it. And then the manager has a to-do list for the employee, and those requires also complicated workflow. And even if I will tell you today, Phil, in one of the most advanced technical company in Silicon Valley, when I was talking to them, their people operations aspect of it, when an employee moves from Office A to Office B, it is still a lot of manual process that touches multiple departments, and that's where ServiceNow shines.

Philip Winslow

Exactly. Exactly. I remember just talking people to tie between IT, HR, particularly on onboarding, Okay, did I get provisioned laptops show up? -- was able to sign into this office set it up -- so -- and sort of like when I heard talk to some of your customers at the conference, it was that I did a bake-off in the idea of HR service delivery and ServiceNow is the best. And the fact that we're using on the IT side which is gravy, but at one sort of on its standalone merits because sort of like there was nothing else out there that did this.

CJ Desai

And exactly. And I would tell you that between most of the large American banks and European banks, we are always an end the HRSD with the HCM. And now everybody realizes, okay, we understand what HCM does but we see this.

Philip Winslow

And what it doesn't do.

CJ Desai

But it still comes up every single time, yes.

Philip Winslow

I'm sure. I'm sure. Okay. We're going to do one more product area before we actually step back a little bit about automation, obviously, this is something actually you and I talked about in Las Vegas. Obviously, you launched native RPA product early this year, your ServiceNow RPA. What areas with an RPA are you seeing the most traction? What are the areas for further investment?

CJ Desai

So we bought a small company. My highest thesis, and this is my personal conviction that RPA is not a differentiated technology. That it's not very hard to create an RPS solution. The approach that we wanted to take is that you are a Fortune 6 company, a real example. Fortune 6 company you are using ServiceNow for workflow automation. We are fully API-driven, but you have these 10 legacy systems that are non-API-based. So for those ServiceNow use cases say, on customer service, -- how do I integrate with those legacy systems. So we wanted to provide RPA in the platform that I can do that. Our CIO, who Sinomine, Chris Betty, -- he took the platform and in Gina's finance department, he saw there were opportunities to create bots using ServiceNow Platform.

The team created 30-plus bots on ServiceNow Platform and automated things related to non-API-based system. So we are still going to do RPA in the context of ServiceNow use cases where you need to integrate with a non-PI-based system or even if API integration is just really hard.

Philip Winslow

All right. That makes sense. All right. Now I jumped before that you've been almost too successful at your own job bringing so much product of the salespeople to sell into new and existing customers. But from your position, you're Chief Product Officer, how do you decide sort of what areas to focus then on -- because to your point is like the applicability of the platform is so broad. When you sit in your role, how do you say this is this increase to go after? This is this new platform and it is workflow to go after. How are you thinking from your seat?

CJ Desai

So one of the things that we always want to do is at the highest level, I still look at white space in every area, whether we pick creator or [ITSME] one and so on, we still want best-in-class product, a period of full stop. So we will continue to invest in R&D for those products. I don't the one word that is not allowed in my team is cash cow because we don't have a cash cow. We have every product line that is growing nicely, and we still have a lot of white space, right? All jokes as said we do. So we continue to invest to make sure. One of the things, Phil, that we have really focused on over the last two to three years is time to value. How fast can we get time to value and how much conditionality we provide in the cloud itself. So the implementation cycles are very fast. Sometimes, customers really, really focus on that aspect and time to value.

Now in terms of your question on where things are going, like cloud transformation, everybody is dealing with some kind of cloud transformation. So our ITSM and ITOM team, how do we make that easy in this multi-cloud world, not just saying at a superficial level, really thinking about the pain point and doing that hard dollar savings via asset management. The two products that have just done a phenomenal job this year despite the market environment is our security operations and risk products.

We are replacing a lot of legacy risk solution and doing wall-to-wall enterprise risk in tech, in financial services and in health care. And five years ago, I had 10 engineers on it. Now I have 60 and the business is growing. It is the second fastest-growing product line after our asset management product line risk is -- so that's an area that we are going to continue to invest to make sure that when we started that product, of course, everybody told me, hey, CJ, it's only a few hundred million dollar product market, blah, blah, spreadsheet has the share. That changed. We've changed that. And then ERP is another area. And then on the core platform with machine learning, process mining, we'll continue to always invest in it.

Philip Winslow

Now on the flip side of this, obviously, you said, hey, your development engine is running at such high eye speeds right now. I'm not sure if anybody brings as much product to market as efficiently as ServiceNow does. But let's talk about M&A, sort of the flip side of organic.

How do you go through the process of buy versus build, you and the management team think about it? And do you think as the frankly, just the macro and what's happening and then sort of the markets, public, private valuations changed at all or create maybe opportunities in the context of M&A versus maybe that it might change that equation?

CJ Desai

So I always first start with the customer. And our customers asking me to look at something that ServiceNow should have. And that is North Star for us. And the customer has not come and say, CJ, you should buy x or you should buy y. And I am very cognizant of not putting the complexity on the customer that, hey, here is platform -- here is another technical debt we are going to take on.

So first, the customer bar is very high. So can I build it fast enough? -- given platform provides all the features? Or do I need to really buy something for a particular functionality. And the second bar for us, which is even higher is our shareholders that are here. If you look at revenue and free cash flow numbers that we have, which is closer to 60, I mean, that bar is really, really high.

So what is in it for our shareholders besides what is in it for our customers. Once you put those two lines, I would rather build and buy, but we always do that analysis and look at everything.

Philip Winslow

Exactly. If you don't have any cash cows, we definitely have a few cash machines. Okay, so I always like to ask is, I can't believe our time's already up. To skip over a couple of questions. But CJ, let's say you and I are sent up here two, three years, having the same kind of conversation, what do you think you're going to look back on and say, hey, this technology, this product, this trend, was more transformative for ServiceNow's customers and people provide it credit for back in 2022?

CJ Desai

I would come back to most of the time, both our customers and others even, our employees for some part, underestimate how complex the technology landscape that our customers are dealing with and how ServiceNow truly even in these economic times, is helping them simplify that landscape and create that technology foundation so that they can transform their business.

And that's why our demand remains robust. You saw our Q3 results that most folks thought that, okay, maybe ServiceNow will struggle, and the diversity of our product lines, Phil, and diversity of our customer base like public sector, strong customer base across the board, not just United States. That is what is resonating really well with ServiceNow in our customer base. And three years from now, Hey, I knew I needed to transform cloud at this level for my technology, public, private, whatever, ServiceNow was always there and help us on that journey along. Most folks under estimate how much ServiceNow helps them.

Philip Winslow

How much you can do that, yes. Awesome. Well, my friend, I always learn so much whenever I get a chance to get time with you. I'm sure everybody in the audience did as well. Thank you for coming down. And like I said, I appreciate you making the time as always.

CJ Desai

Thank you.

Philip Winslow

Thanks.

Wed, 30 Nov 2022 19:45:00 -0600 en text/html https://seekingalpha.com/article/4561592-servicenow-inc-now-presents-credit-suisse-26th-annual-technology-conference-transcript
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