Servicenow, Inc. · NYSE:NOW

Servicenow — Investor Day (May 2017)

150 slides from Servicenow's investor day presentation, May 8, 2017

Slide 1: ServiceNow Financial Analyst Day
ServiceNow Financial Analyst Day Hyatt Regency Orlando, Florida May 8th, 2017 1 © 2017 ServiceNow All Rights Reserved Confidential © 2017 ServiceNow All Rights Reserved
Slide 2: Safe Harbor and Other Information
Safe Harbor and Other Information This presentation contains “forward‐looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. We intend for such forward‐looking statements to be covered by the safe harbor provisions for for
Slide 3: Statement Regarding Use of Non-GAAP Financial Measures
Statement Regarding Use of Non-GAAP Financial Measures We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. We present revenues adjusted for constant currency and corresponding growth rates to provid
Slide 4: Agenda
Agenda Initial Observations – John Donahoe, President & Chief Executive Officer The ServiceNow Portfolio – CJ Desai, Chief Product Officer IT Service Management – Farrell Hough, GM & VP, ITSM & Product Operations Customer Service Management – Abhijit Mitra, GM & VP, CSM Break HR Service Delivery - D
Slide 8: Most Work Is Unstructured, Slow & Hard To Optimize
Most Work Is Unstructured, Slow & Hard To Optimize E ma i l , S p r ead sheets, Fo r ms, Work Departments M e s senger, C al l s Incidents IT Requests HR Cases Services Tasks Security 8 © 2017 ServiceNow All Rights Reserved
Slide 9: The ServiceNow System Of Action
The ServiceNow System Of Action™ Requester Ser vice Owner Provider Build Experiences Define Measure & Services Optimize Request Self Prioritize Automate Status Serve & Assign Resolution View Collaborate Status & Resolve 9 © 2017 ServiceNow All Rights Reserved
Slide 10: The Now Platform Powers The System Of Action
The Now Platform™ Powers The System Of Action IT SECURITY CUSTOMER SERVICE HR BUSINESS APPS Anomaly Predictive Peer Performance Detection Modeling Benchmarks Forecasting Intelligent Automation Engine Service Subscription View Knowledge Self Measure & Service DefineWorkflow Build Developer Reports &
Slide 11: Advances In The User Experience
Advances In The User Experience IT SECURITY CUSTOMER SERVICE HR BUSINESS APPS Anomaly Predictive Peer Performance Detection Modeling Benchmarks Forecasting Intelligent Automation Engine Service Subscription Knowledge Service Workflow Developer Reports & Single Contextual Orchestration Portal & Notif
Slide 12: Delivering Delightful Experiences
Delivering Delightful Experiences Requester Actioner Requester Actioner Place screenshot here Place screenshot here Place screenshot here 12 © 2017 ServiceNow All Rights Reserved
Slide 13: The ServiceNow Intelligent Automation Engine
The ServiceNow® Intelligent Automation Engine™ Anomaly Predictive Peer Performance Detection Modeling Benchmarks Forecasting Anomaly Predictive Peer Performance Detection Modeling Benchmarks Forecasting Intelligent Automation Engine Intelligent Automation Engine Service Subscription Knowledge Servic
Slide 14: Every Cloud Service Benefits From Intelligent Automation
Every Cloud Service Benefits From Intelligent Automation HR Route requests Personalize content BUSINESS APPS Compare performance Assign values to fields Correlate events Create predictive action SECURITY Score incident risk Block threat indicators Optimize resolution CUSTOMER SERVICE Route cases IT
Slide 15: The Nonstop Cloud
The Nonstop Cloud IT SECURITY CUSTOMER SERVICE HR BUSINESS APPS Now Platform™ Multi-Instance Secure & Compliant Scalable Nonstop Cloud 15 © 2017 ServiceNow All Rights Reserved
Slide 16: The Multi-Instance, Scalable Nonstop Cloud
The Multi-Instance, Scalable Nonstop Cloud Multi-Instance Scalable HIGHER THAN IN ONE YEAR: 99.996% • 3.94 BILLION performance AVAILABILITY analytics scores computed • 175 MILLION assets added • 832 MILLION CIs added Data • 596 MILLION notifications sent Isolation Version Management • 26 MILLION cha
Slide 17: The Nonstop Cloud Is Secure And Compliant
The Nonstop Cloud Is Secure And Compliant Security Dashboard Compliance Certifications ISO 27018 Place screenshot here FISMA Moderate Agency ATO FedRAMP Moderate JAB P-ATO 17 © 2017 ServiceNow All Rights Reserved
Slide 20: Jakarta: Expanded Capabilities for Customer Service, HR and Security
Jakarta Performance & Expanded Capabilities for User Experience Customer Service, HR and Security 20 © 2017 ServiceNow All Rights Reserved
Slide 22: Announcing: ServiceNow Vendor Risk Management
Announcing: AVAILABLE IN JA K A R TA SECURITY ServiceNow® Vendor Risk Management Shut The Door on Third Party Security Risks Automate Third Party Risk Place screenshot here Gain True Visibility of Overall Risk Posture Onboard New Vendors More Quickly 22 © 2017 ServiceNow All Rights Reserved
Slide 23: Jakarta: Expanded Capabilities for IT
Jakarta Performance & Expanded Capabilities for IT: Intelligence, User Experience Customer Service, Cloud Management HR and Security & Software Asset Management 23 © 2017 ServiceNow All Rights Reserved
Slide 25: Announcing: ServiceNow Software Asset Management
Announcing: AVAILABLE IN JA K A R TA ServiceNow® Software Asset Management 6 PRODUCT ANNOUCEMENTS IT Make Vendor Audits Painless and Reclaim Unused Software Licenses Keep License Compliance at Your Fingertips Place screenshot here True-up Entitlements Before an Audit Occurs Free Up Unused Software L
Slide 27: Announcing: Cloud Management
AVAILABLE IN Announcing: Cloud Management JA K A R TA IT Give Employees The Freedom To Access Cloud Resources And IT The Power To Stay In Control End User Flexibility and Visibility of All Cloud Resources Place screenshot here Increased IT Control Over Risk and Cost Consumer-like Self-service Experi
Slide 31: ServiceNow IT Service Management
AVAILABLE IN ServiceNow® IT Service Management JA K A R TA Visual service level timeline Easier Service Catalog management Place screenshot here Proven practices for guided setup Better survey experience 31 © 2017 ServiceNow All Rights Reserved
Slide 32: ServiceNow IT Operations Management
AVAILABLE IN ServiceNow® IT Operations Management JA K A R TA End user visibility and control Place screenshot here for all cloud resources Multi-cloud blueprint designer Cloud service mapping 32 © 2017 ServiceNow All Rights Reserved
Slide 33: ServiceNow IT Business Management
AVAILABLE IN ServiceNow® IT Business Management JA K A R TA Financial Reporting & Charging Software Asset Management Place screenshot here New Insights From Project & Application Portfolio Management 33 © 2017 ServiceNow All Rights Reserved
Slide 34: You Can Use Intelligent Automation Now
You Can Use Intelligent Automation Now Operational Predictive Benchmarks Intelligence Intelligence Performance Analytics Place screenshot here Place screenshot here Anomaly Detection Predictive Modeling Peer Benchmarks Performance Forecasting 34 © 2017 ServiceNow All Rights Reserved
Slide 35: Predict Future Performance With Performance Analytics
Predict Future Performance With Performance Analytics Make better, faster, more informed decisions Advanced Forecasting Interactive Analysis Place screenshot here Data Import 35 © 2017 ServiceNow All Rights Reserved
Slide 36: Prevent Future Issues With Operational Intelligence
Prevent Future Issues With Operational Intelligence Detect problems and stop them fast, but you probably already knew that Predictive Alerts Anomaly Detection Place screenshot here Root Cause Analysis 36 © 2017 ServiceNow All Rights Reserved
Slide 37: Compare Performance With Benchmarks
Compare Performance With Benchmarks Know how you’re performing relative to your peers Industry Averages Trends Over Time Place screenshot here Regularly Updated 37 © 2017 ServiceNow All Rights Reserved
Slide 38: Categorize & Route Work With Predictive Intelligence
Categorize & Route Work With Predictive Intelligence Personalized adaptive intelligence tailored to each customer and their own data Categorization Place screenshot here Prioritization Assignment 38 © 2017 ServiceNow All Rights Reserved
Slide 39: IT Service Management Evolution
IT Service Management Evolution Automated Conversation Design Human Conversation Design Semi-structured Forms Knowledge Base Interactive Voice Response (IVR) Call Handling Scripts Self-service Voice Virtual Phone Web Mobile Portal Recognition Reality 39 © 2017 ServiceNow All Rights Reserved
Slide 44: Customer Service Is Key To Business Success
Customer Service Is Key To Business Success CUSTOMER CUSTOMER REVENUE EXPERIENCE L O YA LT Y GROWTH “A 5% increase in customer retention can increase profits by up to 95%.” Bain and Company 44 © 2017 ServiceNow All Rights Reserved
Slide 45: But There Is a Disconnect
But There Is a Disconnect 80% YET 8% of companies say of people think these they deliver superior same companies deliver customer service customer service worthy of a superior rating Forrester 45 © 2017 ServiceNow All Rights Reserved
Slide 46: Existing Solutions Are Not Sufficient
Existing Solutions Are Not Sufficient CRM Service Management REACTIVE PROACTIVE LOG CUSTOMER ISSUES FIX CUSTOMER ISSUES 46 © 2017 ServiceNow All Rights Reserved
Slide 47: The ServiceNow System Of Action
The ServiceNow System Of Action™ Customer Agent Build Experiences Define Measure & Services Optimize Request Self Prioritize Monitor & Service Serve & Assign Prevent Track Status Collaborate & Resolve 47 © 2017 ServiceNow All Rights Reserved
Slide 55: Announcing: ServiceNow Communities
AVAILABLE IN Announcing: ServiceNow ® Communities JA K A R TA Now every customer gets a personalized experience with a community of experts and peers Personalize Self-service Experiences Engage with Peers and Experts Act on Customer Insights 55 © 2017 ServiceNow All Rights Reserved
Slide 56: ServiceNow Customer Service Management
ServiceNow Customer Service Management Omni Channel Customer Data Knowledge and Case Field Service Engagement Management Communities Management Management Service Management Differentiation IT SECURITYCatalog - Request CUSTOMER - Problem SERVICE - Change - Configuration HR BUSINESS APPS Predictive A
Slide 61: A System Of Action For HR
A System Of Action For HR Employee HR Team Employee Payroll HR Relations Operations Build Experiences Define Measure & Services Optimize Make Ask HR for Prioritize Provide Choices Help & Assign Personalized Get Step by Collaborate Resolution Step Across Guidance Departments 63 © 2017 ServiceNow All
Slide 67: Results customers have realized
$720K $3.3M Results customers have realized “Our employees are saving lives every day. ServiceNow makes routine employee tasks quick and easy, allowing them to get back to what’s important.” Carlie Bush, Director, HR Shared Services 69 © 2017 ServiceNow All Rights Reserved
Slide 68: Onboarding Is A Multi-Department Experience
Onboarding Is A Multi-Department Experience Facilities HR Finance Start Finish IT Unstructured | Incomplete | Untimely 70 © 2017 ServiceNow All Rights Reserved
Slide 69: Onboarding Needs A Multi-Department Solution
Onboarding Needs Is A Multi-Department A Multi-Department Experience Solution A SystemFacilities Of Action HR Finance Start Finish IT Unstructured | Incomplete | Untimely 71 © 2017 ServiceNow All Rights Reserved
Slide 71: Announcing: ServiceNow Enterprise Onboarding & Transitions
Announcing: AVAILABLE IN JA K A R TA ServiceNow ® Enterprise Onboarding & Transitions Give employees the onboarding experience they deserve Provide a consumerized service experience Place screenshot here Drive action across all departments Automate processes in minutes 73 © 2017 ServiceNow All Right
Slide 73: Customer Success
Customer Success 77 Logos used other than the ServiceNow logo are trademarks or registered trademarks of their respective holders and not ServiceNow. © 2017 ServiceNow All Rights Reserved
Slide 74: ServiceNow Leadership in HR Service Delivery
ServiceNow Leadership in HR Service Delivery Other Other Generic IT Help Desk ServiceNow Peoplesoft CRM Peoplesoft CRM ServiceNow Generic IT Help Desk Niche Competitors Niche Competitors 2015 2016 Sierra-Cedar 2015-2016 and 2016-2017 HR Systems Survey 78 © 2017 ServiceNow All Rights Reserved
Slide 77: ServiceNow
ServiceNow IT SECURITY CUSTOMER SERVICE HR BUSINESS APPS Predictive Anomaly Peer Performance Modeling Detection Benchmarks Forecasting Intelligent Automation Engine Service Subscription Knowledge Service Workflow Developer Reports & Single Contextual Orchestration Portal & Notification Base Catalog
Slide 78: The Security Market Today
The Security Market Today Protection Detection Visibility 82 Logos used other than the ServiceNow logo are trademarks or registered trademarks of their respective holders and not ServiceNow. © 2017 ServiceNow All Rights Reserved
Slide 79: A New Category for the Security Industry
A New Category for the Security Industry Enforcement Detection Visibility Response 83 Logos used other than the ServiceNow logo are trademarks or registered trademarks of their respective holders and not ServiceNow. © 2017 ServiceNow All Rights Reserved
Slide 80: ServiceNow Security Operations
ServiceNow® Security Operations Security Incident Vulnerability Threat Automation & Deep IT Workflow Response Response Intelligence Orchestration Integration Predictive Anomaly Peer Performance Modeling Detection Benchmarks Forecasting Intelligent Automation Engine Service Subscription Knowledge Ser
Slide 81: Key Use Cases
Key Use Cases Security Incident Vulnerability Threat Automation & Deep IT Workflow Response Response Intelligence Orchestration Integration Vulnerability teams merge scan data with asset maps to prioritize and remediate vulnerabilities based on real business risk 85 © 2017 ServiceNow All Rights Rese
Slide 82: Key Use Cases
Key Use Cases Security Incident Vulnerability Threat Automation & Deep IT Workflow Response Response Intelligence Orchestration Integration Security Operations Center teams automate mundane but necessary tasks, saving hours per incident and improving effectiveness 86 © 2017 ServiceNow All Rights Res
Slide 83: Key Use Cases
Key Use Cases Security Incident Vulnerability Threat Automation & Deep IT Workflow Response Response Intelligence Orchestration Integration Threat hunters can investigate threats by associating indicators of compromise with prior events, public ratings, and business risk 87 © 2017 ServiceNow All Rig
Slide 84: Key Use Cases
Key Use Cases Security Incident Vulnerability Threat Automation & Deep IT Workflow Response Response Intelligence Orchestration Integration Executive dashboards trend key metrics over time, providing visibility of true security posture 88 © 2017 ServiceNow All Rights Reserved
Slide 85: Four Main Benefits, Two Ways to Start
Four Main Benefits, Two Ways to Start Incident Response Vulnerability Automation Response Automation Contextual Threat Hunting CISO Dashboards 89 © 2017 ServiceNow All Rights Reserved
Slide 86: Strong Ecosystem
Strong Ecosystem Various delivery mechanisms such as ServiceNow Support for common integration models: Python App Store, professional services, out-of-box, and scripting, RESTful API, email parsing, and STIX/TAXII open plugin customization 90 Logos used other than the ServiceNow logo are trademarks
Slide 87: Security Ops use case with G2K financial firm
Security Ops use case with G2K financial firm SecOps processes email Close if none found, User reports Phishing and checks for threats else check for existing block Update dashboards / Respond to threat using Close if block found, create audit record defined process else pass to analyst 91 © 2017 Se
Slide 88: Vulnerability use case with global organization
Vulnerability use case with global organization Trigger Create tasks Vulnerability scan Attach results to based on from Qualys CMDB criticality and asset value Update Trigger targeted dashboards / VM scan to IT patches assets create audit confirm fix record 92 © 2017 ServiceNow All Rights Reserved
Slide 99: Alliances & Channels Strategy
Alliances & Channels Strategy Tony Beller VP of WW Alliances & Channels 103 © 2017 ServiceNow All Rights Reserved Confidential © 2017 ServiceNow All Rights Reserved
Slide 100: Our Alliances & Channels Strategy
Our Alliances & Channels Strategy • Leverage the partner ecosystem to build markets on all of our Product Lines • Expand our footprint in key industries leveraging the partner's deep industry expertise and solutions. Catalyst Program • Expand our platform market share with partners who build applica
Slide 102: Alliances & Channels ACV Influence Increasing
Alliances & Channels ACV Influence increasing 75% 59% 52% 48% 2014 2015 2016 2017 2018 2019 2020 Partner Touch Total Partner % 106 Note: 2017-2020 figures represent targets. © 2017 ServiceNow All Rights Reserved
Slide 103: Leading our clients' digital transformations
May 10, 2017 Leading our clients’ digital transformations DXC Technology / ServiceNow Alliance Overview
Slide 104: DXC: Thrive on change
Thrive on change DXC Technology is the world’s leading independent, end-to-end IT services company. We guide clients on their digital transformation journeys, multiply their capabilities, and help them harness the power of innovation to thrive on change. Together, we serve nearly Our clients benefit
Slide 105: DXC Technology at a glance
DXC Technology at a glance $25B GLOBAL IT 250+ PARTNER NETWORK WITH ~6,000 CLIENTS SERVICES LEADER BEST-OF-BREED PARTNERS 14 STRATEGIC PARTNERS 200+ Fortune 500 companies 60+ YEARS OF INNOVATION 170,000+ EMPLOYEES 91 DATA CENTERS WORLDWIDE 37 STRATEGIC 70+ COUNTRIES 3,600+ CERTIFIED PROJECT DELIVERY
Slide 106: DXC leadership positions
DXC leadership positions #1 #1 #1 ServiceNow AWS certified HDS integrator by deployments architects sales revenue #1 #1 #1 Symantec GSI Partner RedHat Premier Infrastructure, Oracle engineered systems by sales revenue Applications & Cloud SI support capability Partner by sales revenue © DXC 2017 May
Slide 107: Digital technology solutions for our clients
Digital technology solutions for our clients DXC Partner Network Robust structure of 250+ industry-leading partners who work together with DXC to deliver the right solution and the right team to address complex, critical client business challenges World-Class Partner Network Build-Sell-Deliver Opera
Slide 108: Global Leader in ServiceNow
Global Leader in ServiceNow INVESTMENTS IN SERVICENOW Leading provider of enterprise Leading provider of ServiceNow Leading provider of service application capabilities, including consulting solutions spanning management solutions and the largest Microsoft Dynamics, SAP, Oracle and continental Europ
Slide 109: 9 global offering families
9 global offering families Cloud, Workload, Workplace Analytics Platforms & ITO & Mobility Our portfolio of analytics services and robust partner We help clients maximize their private cloud, public cloud Our workplace, mobility and IoT services help clients ecosystem help clients gain rapid insight
Slide 110: ServiceNow accelerating the 9 global offering families
ServiceNow accelerating the 9 global offering families Cloud, Workload, Workplace & Mobility Analytics Platforms & ITO Develop a common delivery platform on Leverage big data capability to harvest insights Integrate ServiceNow with Agility platform for self ServiceNow bridging all business services
Slide 111: Leading our clients' digital transformations
May 10, 2017 Leading our clients’ digital transformations DXC Technology / ServiceNow Alliance Overview
Slide 112: ServiceNow Inspire
ServiceNow Inspire® 2017 Financial Analyst Day Michael Hubbard Global VP, ServiceNow Inspire @CloudDrummer May 8, 2017 116 © 2017 ServiceNow All Rights Reserved Confidential © 2017 ServiceNow All Rights Reserved
Slide 114: ServiceNow Context
ServiceNow Context Land, Expand, Retain ServiceNow Enterprise-Wide Use $4B Increased ACV per Customer Real Examples Driving Market Confidence $1B $4B Demonstrated Value Mission Criticality Senior Executive Sponsorship 118 Note: $4B represents 2020 target. © 2017 ServiceNow All Rights Reserved
Slide 115: ServiceNow Inspire Overview
ServiceNow Inspire Overview MARKET INSIGHT Program Components MARKET INSIGHT I N N O VAT I O N CLIENT MARKET MOTIONS PA R T N E R S H I P SCALE 119 © 2017 ServiceNow All Rights Reserved
Slide 116: How Many Customers Adopt NOW As An Enterprise Platform?
ServiceNow Inspire Examples MARKET INSIGHT How Many Customers Adopt NOW As An Enterprise Platform? Cumulative Multi-Product Customers Cumulative Single-Product Customers 72% 73% 67% 69% 65% 62% 59% 56% 53% Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 120 © 2017 ServiceNow All Rights Reserve
Slide 117: Prescribe The Platform Journey Based Upon Customer Success
ServiceNow Inspire Examples INNOVATION MOTIONS Prescribe The Platform Journey Based Upon Customer Success The Lightspeed Enterprise Expand the Service Model Transform IT Modernize IT Helpdesk Customer Journey Framework, Benchmarks, and Workshops 121 © 2017 ServiceNow All Rights Reserved
Slide 118: Instrument, Measure, and Evangelize Success with Customer Partners
ServiceNow Inspire Examples CLIENT PARTNERSHIPS Instrument, Measure, and Evangelize Success with Customer Partners 122 © 2017 ServiceNow All Rights Reserved
Slide 119: Inspiring Confidence, Context, and Success For Everyone
ServiceNow Inspire Examples MARKET SCALE Inspiring Confidence, Context, and Success For Everyone Results What is driving the Journey? LIGHTSPEED Growing Materially Revenues faster Higher Revenue ENTERPRISE Opportunity. Customers achieving How are customers transforming? than headcount Per Employee 4
Slide 120: Focus and Measures of ServiceNow Inspire
Focus and Measures of ServiceNow Inspire Non-Billable Focus, Inspire Is An Investment In Client Partnership, Innovation, And Market Movement 40% 30% Market Value Services 20% Profit & Risk Market Value Billable Investment Mentality Mentality 20% 30% Innovation Value Innovation Value 30% 30% Partners
Slide 121: Customers Choose Inspire For Improved Time To Value
Focus and Measures of ServiceNow Inspire Customers Choose Inspire For Improved Time To Value And Accountability Partner 1 Strategy Assessment & Executive Alignment Internal Business Case & Initial Org Communication Partner 2 Platform Selection & Award Partner 3 Implementation Implementation Inspire
Slide 122: Leading And Lagging Indicators Of Inspire Impact
Focus and Measures of ServiceNow Inspire Leading And Lagging Indicators Of Inspire Impact 250 $200M 60 20 CUSTOMERS NNACV CXO CUSTOMER INSPIRED PIPELINE R E L AT I O N S H I P S CASES 126 Note: Pipeline data represents estimate. © 2017 ServiceNow All Rights Reserved
Slide 123: Voice of the Customer
Voice of the Customer Case Study Discussion of Inspire Impact Customer Service and Support Transformation Ashley Haynes-Gaspar VP & General Manager GE Digital Global Support @AHaynesGaspar 127 © 2017 ServiceNow All Rights Reserved
Slide 124: Inspire Vision & Strategy Dashboard with GE Digital
Inspire Vision & Strategy Dashboard with GE Digital VISION STRATEGIC DRIVERS DESIRED OUTCOMES ROADMAP TRACKS DELIVERABLES Revenue Uplift Drive the Transform into a Financial proactive and Targets predictive enterprise Customer services organization Productivity Gains Productivity #1 that contributes
Slide 127: Key Investments Are Driving Sustained High Growth
Execution Key Investments Are Driving Sustained High Growth LT Model 606 Partner New Sales Support Inspire Team Acquisitions Ecosystem Products 137 © 2017 ServiceNow All Rights Reserved
Slide 128: High Revenue Growth Combined with Accelerating Non-GAAP Free Cash Flow Growth
High Revenue Growth Combined with Accelerating Non-GAAP Free Cash Flow Growth Revenue ($M) and Growth % 200 0 74% 61% $1,870 1 180 0 47% 38% 0.5 160 0 $1,391 34% 0 140 0 120 0 $1,005 -0.5 100 0 800 $683 -1 600 $425 -1.5 400 -2 200 0 -2.5 2013 2014 2015 2016 2017E Free Cash Flow ($M) and Growth % 500
Slide 129: Fastest Growing Enterprise Software Company at Scale
Execution Fastest Growing Enterprise Software Company at Scale LT Model 606 2016 Revenue Growth for Enterprise Software Companies > $1B in Rev. 38% 35% 26% 26% 22% 18% 17% 16% 14% 10% 10% 9% 9% 8% 8% 7% 7% 7% Median: 7% 7% 7% 6% 6% 6% 5% 4% 4% 0% 0% (0%) (0%) (1%) (3%) (4%) (6%) (7%) (19%) 139 © 201
Slide 130: With Unmatched Combination of Non-GAAP Free Cash Flow
Execution With Unmatched Combination of Non-GAAP Free Cash Flow LT Model 606 2016 Revenue Growth + 2016 Non-GAAP FCF Margin % for Enterprise Software Companies > $1B in Rev. 61% 60% 56% 50% 48% 46% 45% 38% 38% 34% 33% 33% 33% 33% 33% 31% 29% 29% 29% 28% 28% Median: 29% 26% 26% 25% 25% 24% 23% 19% 13
Slide 131: Contribution and Growth Across All Customer Segments
Execution Contribution and Growth Across All Customer Segments LT Model 606 Global 2000 Large Enterprise Commercial Global 2000 2016 ACV Growth: 43% 26% Large Enterprise 2016 ACV Growth: 35% 51% 23% Commercial 2016 ACV Growth: 50% Note: Contribution mix represents total ACV as of 12/31/16. Growth re
Slide 132: Global 2000s Represent Our Largest Opportunity
Execution Global 2000s Represent Our Largest Opportunity LT Model 606 Global Penetration North America EMEA APAC & Other 15% 38% 46% 60% Beginning Quarterly Balance Net G2K Adds 737 763 682 706 657 26 24 31 21 25 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Note: The Forbes list is updated annually in the second q
Slide 133: Upsells Drive Majority of New Business
Execution Upsells Drive Majority of New Business LT Model 606 ACV/G2K ($k) $1,082 $1,107 $934 $991 $908 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Customers $1-$5M Customers > $5M 370 342 303 26 275 23 245 13 18 9 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Note: Previously disclosed number of customers with ACV greater than
Slide 134: Consistent Upsells Drive High Growth
Execution Consistent Upsells Drive High Growth LT Model 606 Annual Growth of Initial ACV Total Annual Contract Value By Cohort Current Prior Year 52% n/a 2017 68% 57% 2016 2015 58% 53% 2014 2013 63% 59% 2012 2011 57% 57% 2010 67% 55% 79% 70% 2010 2011 2012 2013 2014 2015 2016 2017 Note: Chart reflec
Slide 135: Net New ACV Mix Shifting to Emerging Products
Execution Net New ACV Mix Shifting to Emerging Products LT Model 606 Service Management ITOM Other 17% 27% 29% 25% 34% 16% 13% 12% 21% 13% 67% 60% 59% 54% 53% Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Note: Service Management = IT, Facilities, Field Service, Finance, Marketing, Legal, Express 145 ITOM = Service
Slide 136: 17 of our Top 20 Deals in 2016 included 4+ Products
Execution 17 of our Top 20 Deals in 2016 included 4+ Products LT Model 606 3+ Products 2 Products 1 Product Service Customer Security Customer ITOM Platform ITBM Analytics HR GRC Management Service Operations Customer 1 X X X X Customer 2 X X X X X X Customer 3 X X X X X X X X Customer 4 X X X X X C
Slide 137: 2020 Non-GAAP Targets
Execution 2020 Non-GAAP Targets LT Model 606 2015A 2016A 2017E 2020 Target Total Revenue $1.005B $1.391B $1.860-$1.880B $4B Non-GAAP Subscription Data center density, improved economies of scale Gross Margin 82% 84% 84% 84-86% Non-GAAP PS & Other Productized & scalable offerings, utilization, ramp t
Slide 138: Framework for Non-GAAP Growth and Profitability
Execution Framework for Non-GAAP Growth and Profitability LT Model 606 Moderate Growth Growth High Growth Non-GAAP <30% 30-35% 35%+ Revenue Growth Non-GAAP 4-5% 3-4% 2-3% Operating Margin % increase per year increase per year increase per year Non-GAAP 2-3% 1-2% 0-1% FCF Margin % increase per year i
Slide 139: Non-GAAP Subscription Billings Seasonality
Execution Non-GAAP Subscription Billings Seasonality LT Model 606 Gross Down Net New ACV Renewals Backlog Q1 Q2 Q3 Q4 Billings 2nd Smallest 2nd Largest Smallest Largest Backlog / Renewals / NN ACV Smallest Largest Gross Down Largest Smallest 149 Note: Billings seasonality does not account for multi-
Slide 140: Non-GAAP Free Cash Flow Seasonality
Execution Non-GAAP Free Cash Flow Seasonality LT Model 606 Illustrative Non-GAAP FCF Margin Q1 Q2 Q3 Q4 Op. Margin Low Low High High High High Collections Low Low (Q4 NN ACV) (Q4 Non-GAAP Billings) Employee Stock Purchase Plan 150 Note: All figures are calculated on a non-GAAP basis. © 2017 ServiceN
Slide 141: Long Term Fully Diluted Shares Outstanding
Execution LT Model Long Term Fully Diluted Shares Outstanding (No Treasury Stock Method) 606 Share Count (M) Share Count Increase (%) 5.0 % 250 2.5% 2.4% 2.5% 2.4% 200 205 195 0.0 % 200 191 -5.0% 150 -10.0% 100 -15.0% 50 - -20.0% 2017E 2018E 2019E 2020E 151 Note: Share count includes basic shares +
Slide 142: Long Term Taxes
Execution Long Term Taxes LT Model 606 Non-GAAP Tax Rate 30% 29% 28% 26% 2017E 2018E 2019E 2020E Cash Taxes ($M) $23.0 $15.0 $10.0 $8.0 2017E 2018E 2019E 2020E 152 Note: Tax rate is calculated on a non-GAAP basis, revenue growth rates account for constant currency. See appendix for Non-GAAP reconcil
Slide 143: Impact of ASC 606 Adoption in 2018
Execution Impact of ASC 606 Adoption in 2018 LT Model 606 1 2 3 Revenue Recognition Commissions Added Disclosures Amortization 153 © 2017 ServiceNow All Rights Reserved
Slide 144: ASC 606 Revenue Recognition Impact
Execution 1 ASC 606 Revenue Recognition Impact LT Model 606 Acceleration of revenue recognition for on-prem deployments Overview 1 Recognize license revenue immediately 2 Recognize post-contract support (PCS) over life of contract (straight-line) Annual Impact 2016 estimated revenue increase: $22 to
Slide 145: ASC 606 Commission Amortization Impact
Execution 2 ASC 606 Commission Amortization Impact LT Model 606 Amortize commissions over period of benefit vs. life of contract On-prem: Overview Commission is allocated between license and PCS in-line with revenue (license expensed immediately) Hosted deployment: Entire commission expensed straigh
Slide 146: ASC 606 Added Disclosures
Execution 3 ASC 606 Added Disclosures LT Model 606 1 Unbilled receivables (revenue recognized but not yet billed) 2 Revenue recognized from beginning deferred revenue Total backlog + deferred revenue to be recognized in different 3 time bands 156 © 2017 ServiceNow All Rights Reserved
Slide 147: Q&A
Q&A John Donahoe President & Chief Executive Officer Michael Scarpelli Chief Financial Officer 157 © 2017 ServiceNow All Rights Reserved Confidential © 2017 ServiceNow All Rights Reserved
Slide 150: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation in millions (except %'s) 2015A Margin 2016A Margin 2017E Margin GAAP Subscription Gross Profit $ 664.9 78% $ 986.2 81% 81% (+) Subscription SBC 23.4 3% 28.5 2% 2% (+) Subscription Amort of Purchased Intangibles 11.1 1% 12.6 1% 1% Non-GAAP Subscription Gross Profit $ 6

ServiceNow — Investor Day (May 2017) on 6ix

Servicenow — Investor Day (May 2017)

Slide 1: ServiceNow Financial Analyst Day

Slide 2: Safe Harbor and Other Information

Slide 3: Statement Regarding Use of Non-GAAP Financial Measures

Slide 4: Agenda

Slide 5: Initial Observations

Slide 6: CJ Desai

Slide 7: The State of Work

Slide 8: Most Work Is Unstructured, Slow & Hard To Optimize

Slide 9: The ServiceNow System Of Action

Slide 10: The Now Platform Powers The System Of Action

Slide 11: Advances In The User Experience

Slide 12: Delivering Delightful Experiences

Slide 13: The ServiceNow Intelligent Automation Engine

Slide 14: Every Cloud Service Benefits From Intelligent Automation

Slide 15: The Nonstop Cloud

Slide 16: The Multi-Instance, Scalable Nonstop Cloud

Slide 17: The Nonstop Cloud Is Secure And Compliant

Slide 18: Jakarta: Performance & User Experience

Slide 19: 37% Faster Form Loads, 25% Faster List Loads

Slide 20: Jakarta: Expanded Capabilities for Customer Service, HR and Security

Slide 21: Shut The Door On Third-Party Security Risks

Slide 22: Announcing: ServiceNow Vendor Risk Management

Slide 23: Jakarta: Expanded Capabilities for IT

Slide 24: Make Vendor Audits Painless

Slide 25: Announcing: ServiceNow Software Asset Management

Slide 26: Give Employees Freedom To Access Cloud Resources

Slide 27: Announcing: Cloud Management

Slide 28: Farrell Hough

Slide 29: Innovation

Slide 30: IT Operations, Service and Business Management

Slide 31: ServiceNow IT Service Management

Slide 32: ServiceNow IT Operations Management

Slide 33: ServiceNow IT Business Management

Slide 34: You Can Use Intelligent Automation Now

Slide 35: Predict Future Performance With Performance Analytics

Slide 36: Prevent Future Issues With Operational Intelligence

Slide 37: Compare Performance With Benchmarks

Slide 38: Categorize & Route Work With Predictive Intelligence

Slide 39: IT Service Management Evolution

Slide 40: Abhijit Mitra

Slide 41: Explosive Adoption Since Knowledge16 Launch

Slide 42: © 2017 ServiceNow All Rights Reserved

Slide 43: Customer Results: Case Reduction and Faster Resolution

Slide 44: Customer Service Is Key To Business Success

Slide 45: But There Is a Disconnect

Slide 46: Existing Solutions Are Not Sufficient

Slide 47: The ServiceNow System Of Action

Slide 48: A New Way To Deliver Customer Service

Slide 49: © 2017 ServiceNow All Rights Reserved

Slide 50: © 2017 ServiceNow All Rights Reserved

Slide 51: © 2017 ServiceNow All Rights Reserved

Slide 52: © 2017 ServiceNow All Rights Reserved

Slide 53: © 2017 ServiceNow All Rights Reserved

Slide 54: Personalized Experience With A Community Of Experts And Peers

Slide 55: Announcing: ServiceNow Communities

Slide 56: ServiceNow Customer Service Management

Slide 57: Demo

Slide 58: In Summary

Slide 59: Break

Slide 60: Deepak R. Bharadwaj

Slide 61: A System Of Action For HR

Slide 62: Consumerize The Employee Service Experience

Slide 63: Consumerize The Employee Service Experience

Slide 64: Consumerize The Employee Service Experience

Slide 65: Consumerize The Employee Service Experience

Slide 66: Consumerize The Employee Service Experience

Slide 67: Results customers have realized

Slide 68: Onboarding Is A Multi-Department Experience

Slide 69: Onboarding Needs A Multi-Department Solution

Slide 70: Giving Employees The Onboarding Experience They Deserve

Slide 71: Announcing: ServiceNow Enterprise Onboarding & Transitions

Slide 72: What's Next for HR Service Delivery

Slide 73: Customer Success

Slide 74: ServiceNow Leadership in HR Service Delivery

Slide 75: HR Service Delivery @ Lightspeed

Slide 76: Sean Convery

Slide 77: ServiceNow

Slide 78: The Security Market Today

Slide 79: A New Category for the Security Industry