LAS VEGAS - The software industry is in the midst of a tumultuous time. But at ServiceNow, CEO Bill McDermott is nothing but optimistic about the vendor’s outlook.
On Tuesday, at a company conference in Las Vegas, McDermott outlined new financial targets. ServiceNow now expects to hit $11 billion in revenue by FY 2024, higher than the $10 billion that McDermott previously forecasted. It also expects to hit $16 billion by FY 2026, up from the prior estimate of $15 billion.
“We couldn't be more excited or more positive about where ServiceNow is going,” McDermott said. The company “has established itself as an enduring platform.”
The numbers are a clear attempt by McDermott, the consummate salesman, to separate ServiceNow from other software companies like Zoom that saw a boom in sales in the pandemic but are now struggling to maintain that momentum.
The rosy estimates come as ServiceNow aggressively expands beyond its core IT business into new verticals like low-code application development and ERP, as well as industry segments like manufacturing, which is helping the company sell higher-priced contracts.
Under McDermott, the company has also struck lucrative partnerships with industry giants, big-name consulting firms and up-and-coming vendors like Microsoft, KPMG and Celonis.
The proof — at least, so far — is in the numbers. ServiceNow continues to report strong financial results. In the three months through March, overall revenue grew to a better-than-expected $1.72 billion. However, its stock has dropped 40% since a November 2021 high amid a broader Wall Street sell-off of software stocks.
Correction: This story has been updated to correct ServiceNow's projected revenue. This story was updated May 24, 2022.