In the previous part, we saw that ServiceNow (NOW) managed to achieve revenue growth of 37% in the third quarter. The company continues to focus on delivering digital workflows to enhance customers’ experience and productivity.
ServiceNow remains optimistic about its diverse product portfolio. The product portfolio positions the company in a manner where it can leverage its expertise and achieve revenue growth over the next few years.
In the third quarter, ServiceNow closed 25 deals with an ACV (average cash value) of over $1 million. The company has 614 clients where the ACV is over $1 million and 11 clients where the ACV is over $10 million. ServiceNow’s client base includes four federal agencies. The company has over 5,000 enterprise customers.
The US federal government was ServiceNow’s biggest deal during the third quarter and accounted for ~20% of its ACV. The State Department is ServiceNow’s largest platform customer.
ServiceNow aims to become a strategic partner with the US federal government. The government is replacing legacy systems and modernizing the IT infrastructure by transitioning to cloud-based platforms.
ServiceNow announced an alliance with Microsoft (MSFT) to deliver digital workflows through the Azure Government Cloud. The partnership will enable a faster transition towards cloud-based solutions for government agencies.
Federal agencies’ digital transformation might be ServiceNow’s next revenue driver.