ServiceNow FY22 Q3 Earnings: Revenue Comes Up Short but Strong Pipeline in Place

ServiceNow’s Q3 subscription revenue came in at $1.742B, representing 22% growth year-over-year but lower than the expected $1.85B. ServiceNow also lowered their full year subscription revenue guidance from a midpoint of $6.92B to a midpoint of $6.86B, while maintaining an expected subscription gross margin of 86%. ServiceNow now has 1,530 customers paying them over $1M per year, with the average annual spend among that group coming in at $4M. Eighteen of the top 20 deals in the quarter contained 5 or more products, which is another key metric for ServiceNow because it demonstrates their ability to sell a wide set of solutions to their customers, especially solutions outside of the core Technology Workflows product set like Employee, Customer and Creator. In this podcast, ServiceNow Practice Leader, Adam Mansfield, discusses what customers should expect from ServiceNow as ServiceNow’s year-end fast approaches. He also shares how customers can leverage ServiceNow’s clear goals during their upcoming ServiceNow renewal negotiations. Host: Adam Mansfield: https://bit.ly/3rPGp8r ServiceNow Commercial Advisory Services: https://bit.ly/3ls6VDt