Another Stock For The Priceless List

It makes sense that in a world where technology is becoming increasingly important, companies need help implementing it in their operations. The alternative is to maintain an expensive and potentially ineffective in-house operation in a world where technological expertise is scarce and costly.

This creates an opportunity for companies like ServiceNow which they are doing their best to seize.

ServiceNow’s relevance as the AI platform for business transformation is soaring. This is a growth company on an unprecedented trajectory. Moving to the topic of AI. Now Assist net new ACV [annual contract value] doubled quarter-over-quarter, significantly overachieving our expectations, and it became the fastest-growing new product in the company’s history.

Bill McDermott, CEO, ServiceNow, Q2 2024, 24 July 2024

McDermott was CEO of European software giant SAP until he moved to ServiceNow and he is a formidable individual.

You could say that AI and ServiceNow are made for each other. If you want to find out more about AI and GenAI look on the ServiceNow website.

And the company is walking the talk.

By now you’ve all seen the press release. You know we crushed the quarter, we raised the full year guidance, and we’ve never been more excited about the future of ServiceNow.

Bill McDermott, CEO, ServiceNow, Q2 2024, 24 July 2024

This is creating so many opportunities.

What does it look like to run a business with GenAI at the core? ServiceNow, thanks to our engineering and our Now on Now teams, is leading the way. It’s an excitement for GenAI. And it’s one reason Gartner forecast global IT spending will be up 8.9pc in 2024. And that’s even higher than originally forecasted.

By the way, that is more than three times GDP growth. Within software spend, according to IDC, Software-as-a-Service will grow 17pc. So the trend line is clear. Enterprise software buyers are moving away from consolidating the past into building for the AI future.

They see ServiceNow as the intelligent action platform spanning the entire enterprise. And that is why our pipeline has built from knowledge over 50pc year-over-year improvement. It’s why CIO surveys continue to show ServiceNow’s relevance rising to the top of the charts. It’s why more IT and line of business buyers alike are looking at long-term blueprints for ServiceNow and planning out the future with us.

It’s why Jensen Huang hit it on the head when he said, “ServiceNow is the AI operating system for the enterprise.” Customers are seeing us like Jensen sees us. While our performance has been consistently strong, we take nothing for granted. Every aspect of our innovation engine and our go-to-market machine is moving up to the next level. We’re tracking and tackling more of the automation and market opportunities every day with both our customers and our engineers.

Bill McDermott, CEO, ServiceNow, Q2 2024, 24 July 2024

You can see why McDermott left SAP for ServiceNow.

This is the largest, most compelling business opportunity in the world. We are bullish on what’s ahead. That’s why we have not only confirmed, but also raised our full year guidance.

Our brand represents an optimistic view of the world’s future, it’s why we’re putting AI to work for people. And ultimately, why? As we celebrate the 20th anniversary of Fred Luddy’s original dream, we believe the next 20 years will be even more exciting. I, personally, have never been more convinced that ServiceNow will be the defining enterprise software company of the 21st century.

Bill McDermott, CEO, ServiceNow, Q2 2024, 24 July 2024

Share Recommendations (9 September)

ServiceNow NOW

Strategy – Have Faith In Your Share Selections

The priceless strategy is all about what I have always believed – if you buy the best and wait patiently for the company’s performance to show in the share price you will do well. ServiceNow is a perfect example. This is a wonderful business with a wonderful future. Believe that and buy the shares and you will do well.