ServiceNow just reported a full-year revenue of $10.98 billion, marking a significant 22% jump from last year. In the fourth quarter, it nearly hit $3 billion, with a year-on-year growth of 21%.
The company is really pushing its AI capabilities right now. Bill McDermott, the chairman and CEO, emphasized that AI is transforming the entire enterprise technology landscape. He sees ServiceNow as a key player for businesses looking to harness AI for better productivity and comprehensive transformation. According to him, they’re just getting started on a massive opportunity, and their growth and innovation position them uniquely in the market.
ServiceNow counted 2,109 customers with annual contracts over $1 million—a 12% increase from last year. They also noted nearly 500 customers with contracts over $5 million, which is a 21% rise. Notably, the number of customers using multiple Pro Plus AI features doubled in the last quarter.
Gina Mastantuono, the president and CFO, shared that their new AI capabilities surged in Q4. Specifically, the Now Assist for service desks saw more than a 150% jump in deals from the previous quarter. She believes they’re just beginning to explore the potential of these technologies. Their plans for 2025 focus not just on maintaining their success but on expanding it, positioning ServiceNow as the go-to AI platform for business transformation.
They also rolled out exciting product updates like the AI Agent Orchestrator, which helps coordinate teams of AI agents across different tasks and departments, and the AI Agent Studio, a tool for creating custom AI agents without needing coding skills. They’ve also introduced thousands of ready-to-use AI agents tailored for IT, customer service, and HR workflows.
Raj Sharma from EY praised ServiceNow’s AI technology, noting its ability to empower teams with smart capabilities through collaboration between humans and AI. He expressed confidence that using AI at an enterprise scale will drive better data integration and transparency.
Rachel Cameron from Rolls-Royce shared how integrating ServiceNow’s AI agents helps streamline operations, minimize manual work, and support quicker, data-driven decisions. The AI-powered automation allows their teams to focus on high-value tasks, ensuring efficiency and security for their operations.
In the same week, SAP—McDermott’s former company—announced its own results. They reported a full-year revenue of €34.2 billion, with a 10% increase from last year, and fourth-quarter revenue of €9.4 billion, reflecting an 11% rise.
SAP also highlighted its AI initiatives. CEO Christian Klein mentioned that half of their cloud orders in Q4 included AI components, and they exceeded their cloud revenue goals, with the total cloud backlog reaching €63 billion—up 40%. The future looks bright for SAP as they anticipate strong growth in revenue through 2027, supported by their strong footing in data and business AI.
Furthermore, SAP announced new capabilities for their cloud portfolio, Joule, which will include collaborative AI agents designed for complex tasks. They reported new sign-ups for their Rise with SAP migration program, with notable customers like BASF, BP International, and Ford Motor Company. North Yorkshire and Warrington Borough Councils also joined the Grow with SAP program, which aims to accelerate the adoption of cloud ERP solutions.