Tuesday, October 22, 2019

ServiceNow names Bill McDermott as CEO, former CEO of SAP

ServiceNow appointed Bill McDermott as President and Chief Executive Officer and a member of the Board of Directors, replacing John Donahoe, who is stepping down from ServiceNow to become President and Chief Executive Officer of Nike in January 2020.

McDermott served as CEO of SAP from 2014 until this month and was co-CEO from 2010 to 2014. During McDermott’s tenure as co-CEO and CEO, SAP tripled its market value to approximately $140 billion, growing into a global software company with more than 437,000 customers in over 180 countries.

“ServiceNow’s board is thrilled to have Bill McDermott join the company,” said Jeff Miller, Lead Independent Director of the ServiceNow Board of Directors. “His global experience and proven track record will provide for a smooth transition and continued strong leadership. Bill will further enhance ServiceNow’s momentum and reputation as a digital workflows leader committed to customer success, and as a preferred strategic partner enabling enterprise digital transformation.”

In addition, ServiceNow announced preliminary third quarter 2019 financial results, as well as updated guidance for its full year 2019 financial outlook. For the third quarter 2019, subscription revenues were $835 million, representing 35% year-over-year growth, adjusted for FX. Subscription revenues for the third quarter exceeded the mid-point of ServiceNow’s guidance by $9 million, excluding the impact of FX.

For full year 2019 guidance, ServiceNow is carrying forward the $9 million in subscription revenues and $10 million in subscription billings that, excluding the impacts of FX and duration, exceeded the company’s previous mid-point guidance for the third quarter.

For the full year 2019, ServiceNow expects subscription revenues between $3.240 billion and $3.245 billion, representing 36% to 37% year-over-year growth, adjusted for FX. This includes an impact of $18 million due to FX.