ServiceNow is an American cloud-computing platform that manages digital workflows for enterprise operations. The company is primarily owned by institutional investors, like Vanguard Group (8.4% ownership), BlackRock (7.8% ownership), and T. Rowe Price Associates (7.4% ownership). The top individual investor is Fred Luddy, the company’s founder. He stepped down as CEO of ServiceNow in 2011 and now has an advisory role within the company. By 2023, he owned 164,777 company stocks.
ServiceNow is an American cloud-computing platform designed to manage digital workflows for enterprise operations. The company was founded as Glidesoft in 2003 by Fred Luddy. ServiceNow makes approximately 97% of its revenue through subscription fees, with the exact fee a client has to pay dependent upon the features they require and the level of customization. ServiceNow makes money from professional services, defined as any activity the company performs to help clients maximize platform value. ServiceNow also makes money by offering customer training.
ServiceNow generates most of its revenue from subscriptions. In 2023 the company generated $8.68 billion in revenue in 2023, $6.89 in 2022, and $5.57 billion in 2021.
In 2023 ServiceNow generated $8.68 billion in subscription revenues, of which $7.68 billion in Digital workflow products and a billion dollars in ITOM products.
Gross margins from subscription services were reported to be over 81%, thus making its subscriptionbusiness critical to sustaining the ServiveNow businessmodel. While gross margins from professional services are negative, the professional services segment is instrumental from a retention standpoint, as it is an enabler of the subscriptionbusiness.
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