- ServiceNow's Remarkable Growth and Market Position CFO Gina Mastantuno highlighted ServiceNow's impressive growth trajectory, with the stock price increasing by 2,700% since its IPO in 2012 and reaching a market cap of around $140 billion. This positions ServiceNow alongside major companies like Morgan Stanley, IBM, and Uber. The company has expanded from an IT helpdesk platform to a comprehensive digital transformation tool utilized across various departments such as HR, finance, customer service, and legal.
- Customer-Centric Innovation as a Core Strategy: Mastantuno emphasized ServiceNow's customer-centric approach as a key driver of its success. The company has grown by closely partnering with customers, understanding their needs, and co-developing solutions. This strategy has resulted in the creation of 11 product lines, each generating over $250 million in Annual Contract Value (ACV), showcasing the platform's versatility and value.
- Pioneering AI Integration and Strategic Investments: Mastantuno also discussed ServiceNow's early adoption of generative AI, notably through the acquisition of Element AI in 2020. This strategic move brought top AI talent into the company, enabling the integration of advanced AI capabilities into the ServiceNow platform. She described AI as an augmentative tool that enhances human productivity and innovation, rather than replacing jobs. AI-driven features like text-to-code have shown high acceptance rates, indicating their practical impact.
- Strong Company Culture and Employee Engagement: Mastantuno underscored the importance of ServiceNow's strong company culture in its overall success. Emphasizing transparency, communication, and trust, the company successfully navigated challenges like the COVID-19 pandemic. ServiceNow's focus on employee well-being and appreciation has resulted in high employee satisfaction, earning it the third spot on Glassdoor's Best Places to Work list in 2024. She also highlighted the company's people-first approach, which includes avoiding mass layoffs and attracting over a million job applicants in a year.
Katie Perry (00:00):
I'm Katie Perry, and this is After Earnings, the show that brings you up close and personal with the executives behind the world's most interesting public companies.
Austin Hankwitz (00:07):
And I'm Austin Haitz. And today we caught up with Gina Mastantuono, the CFO of ServiceNow. ServiceNow is a provider of cloud-based platform and solutions that help digitize and unify organizations so that they can find smarter, faster, and better ways to make work flow. They were founded in 2004 by Fred Luddy. Their stock price is up 2700% since their IPO in 2012 and has three XD since Gina took the CFO role at the company in 2020. During this interview, she walks us through their Q1 earnings results, how they're investing into gen ai, as well as what to expect during their investor day on May 6th.
Katie Perry (00:49):
We also learned why over a million people applied to work at ServiceNow in the last year. That blew my mind. They're lining about the door. I think only about 20,000 people work there currently. So that is a lot of interest in very few spots. And she shared how they use real talk transparency, constant communication, employee appreciation to build a really strong culture that's landed them on the top three of Glassdoor's best places to work. So with that, let's get into it. Wow. Hi Gino. Thank you so much for joining us today.
Gina Mastantuono (01:21):
Hi Katie. Austin, thanks so much for having me.
Katie Perry (01:24):
We're super pumped to have you. ServiceNow, obviously market leader in digital transformation, which is one of those buzzwords I feel like been hearing a lot of for many, many years. But we're going to get into what exactly that means and what it means for you guys. But quickly for our listeners, market cap of about 140 billion stock price up over 2700% since the IPO in 2012. So if we're pulling that alongside some other stocks in terms of market cap in the same realm as the Morgan Stanley, IBM, Uber. So while this is a tech company that isn't necessarily something every one of us uses day to day, it is big business. So we want to unpack that with you. And so want to ask you what are the big challenges that ServiceNow solves for and for whom?
Gina Mastantuono (02:15):
Well, thank you so much. Great question. And yeah, we're super proud of the results that we've had here at ServiceNow. And just because we are not a ubiquitous brand name consumer, I'll just start by telling folks exactly who we are. So ServiceNow, it's a cloud software company and we're the intelligent platform for digital transformation as you said. But what that really means is we really assist businesses and enterprises in managing their digital and automated workflows across the enterprise. So any task, anything that a worker is doing every single day, how can we make that better, faster and more automated? And from the very beginning, our story I has been really different. So first of all, we were founded in San Diego and not Silicon Valley, which most people think by an incredible entrepreneur called Fred Luddy. And he really believed that technology should work in service to people.
(03:16)
And he was a techie and he really wanted to help people at work, help his colleagues every single day use tech technology to make their jobs better. And from very early on he conceived of the company as this platform that enabled faster, better work. But back then, no one really understood what a platform was. We talk platforms now all the time, but customers are like platform, what are you talking about? Tell me what your use case is, tell me what your use cases are. That's what customers wanted to hear and he was in tech. And so his initial use cases, I'm going to use this platform to solve problems in the tech organization. So early days we were an IT help desk platform really designed to automate work across all of the different departments within a tech organization, all the departments silos and processes. You fast forward now 20 years later and now people understand platform and not only have we built out use cases and the platform to really help workers within the IT departments do their work faster and better, but we really digitize work across the enterprise, whether it's it, hr, finance, customer service, legal, and it's all on a low code platform that really makes it easy for almost anyone to create new applications.
(04:42)
In fact, our customer and creator workflow, so outside of IT are now over 1 billion businesses and we've got 11 product lines greater than 250 million in a CV. And in the tech world, one product with 250 million A CV is often its own private public company that goes public. And so we've built and innovated across 11 of those products. And so one of the things that people talk about in software is how do you make sure that you become not just one product, one buying center? And it's one of the things that ServiceNow I think has done really, really well.
Katie Perry (05:22):
That was so helpful because I think there's a lot of legacy content and conversations out there about you guys that are focused on it and it's so helpful to hear that that initial application was part of the world of the founder and that platform can then be applied to other things. And I'm curious, do you see expansion from IT clients across the org and it's spreading to other groups within those organizations?
Gina Mastantuono (05:47):
Oh, a hundred percent. And I'll just say that the ability to be more than a one product company and to go across enterprise didn't happen overnight. And these are pretty incredible milestones, but we've been able to do it with a very, very keen focus on customer success and the ability to really be agile in a dynamic market. And we actually went where the customers took us, so the customers loved this platform within the IT department and then they're like, well, if she's using it over here in it, why can't I use it over here in HR and can you help build me this use case and the application to do similar work in hr? And by the way, the same thing in customer service. And so we don't just listen to our customers, but we partner with them and in many cases we were developing together.
(06:44)
And so it's not about chasing trends and thinking about what I think customers are going to want tomorrow, it's about anticipating and talking with those customers. And it's not about operating on chance, it's really about a people first customer centric kind of culture that's built on trust. And I think that our success hasn't been an accident and being really focused on the customers, being really intentional and thinking ahead to where we want to be, not only tomorrow but 1, 3, 5 years and where our customers want to be is really kind of cool. And one of the reasons why I love this company,
Austin Hankwitz (07:26):
I think that's a awesome and tried and true strategy to building a company. You figure out what your customers want, you have open communication with them and you guys are building toward the same sort of trying to solve the same problems together. And speaking of problems you all have solved, especially early on, you guys were definitely ahead of the curve on generative ai. You acquired a company called Element AI way back in 2020. You've mentioned that AI isn't just a buzzword and it's actually now a big business. We're going to get into the numbers here in a little bit with the earnings breakdown. But before that, can you shed some light on ServiceNow's sort of point of view on ai? Is it a replacing function? Is it a multiplying function for current engineers? How are you guys thinking about artificial intelligence specifically gen AI at ServiceNow?
Gina Mastantuono (08:16):
Yeah, it's a great question Austin, and I appreciate you've done your homework right. So yes, we have absolutely been early to the gen AI game. One of the first acquisitions I green lit actually was that Element AI acquisition that you just talked about back in 2020 and what that acquisition did, it really enabled us to welcome the best of the best AI talent into ServiceNow. And we 100% wouldn't be where we are today without that acquisition. And those incredible engineers really helping build the foundation of AI into our platform. And we say all the time, gen AI is only as powerful as the platform it's built on. And we 100% think that gen AI is going to be fueling transformation and it's not a replace, it's an augment. It's how do we really make employees more productive, taking away some of the more transactional rote types of work and really enabling them to focus on what I think is more impactful and more valuable work for that employee.
(09:27)
And so we're really excited about what it's going to do. We 100% believe it's fueling a new era in the enterprise and it's really going to be a once in generational shift. Leaders all over the world are talking about it. Our customers from the largest to the smallest are all trying to figure out their AI strategy and we're seeing really great traction and really good early results from the productivity that we're seeing. So we are always customer zero in everything we do. I like to say we drink our own champagne. Some people say eat our own dogs. I much prefer the drink our own champagne and we're customer zero for everything. And so we have actually more than 2030 gen AI use cases in production throughout the organization, different departments. We're seeing deflection rates double each month. And when I say deflection, I mean how many times can an employee or a customer answer their own questions without having to speak or talk to a customer service or an IT service rep? Deflection rates increasing, so employees are getting, customers are getting their answers quicker so they can spend more time doing work that they love and the large language models are getting smarter every single month. We're also seeing about a 49% acceptance rate for all code that's being generated by ai. So when we talk about our developers and the engineers trying to innovate, they are much more productive in getting code done faster. And so we 100% think it's augmenting and it's really going to help drive and fuel innovation throughout the enterprise.
Katie Perry (11:15):
I had a quick follow up on that. JE I applications with engineers in particular, I was reading about the text to code ability when I heard that I'm not tactical not engineer, I was like, is this voice to text? They're describing something and it's writing the code or in layman's terms, what does that look like?
Gina Mastantuono (11:36):
So it's not necessarily voice right now making a web
Katie Perry (11:41):
Page at some point,
Gina Mastantuono (11:43):
But it's typing, right? So text typing, I want the application to do this and then it writes the code. And so it's not necessarily speaking, but it is very quick automated writing code. And so when I say acceptance rates are at 49%, so if I type in, I want the code generated to look like this and it looks like that 49% of the time, and again, we're only two quarters out, and so the learning will just get better and better. So for a long time people were saying, oh, we're going to have a developer shortage. Digital strategies becoming the business strategy for every company. So no longer is it just tech companies that have developers, every company, retail banking, healthcare have developers. And so I actually think this enables businesses and customers to really hit their goals and objectives and their strategies quicker and faster. So that's why we really believe that this is augmentation.
Katie Perry (12:51):
Yeah, that specific example, you can see how it's amplifying talent. More time for imagining different approaches, testing strategy optimization, less time in the code. Thanks for spelling that out.
Gina Mastantuono (13:06):
Sure thing.
Austin Hankwitz (13:07):
Let's jump into your earnings, your earnings results, beat Wall Street's expectations. Congratulations, you all displayed very strong growth record margins. Your forward guidance was a little bit I would argue on the conservative side, but your commentary regarding AI continues to be extraordinarily bullish. Specifically the quote that gen AI offerings are the fastest selling in the company's history. So can you walk us through a few points about your quarterly earnings you're most excited about? I would imagine that AI is probably top of that list still.
Gina Mastantuono (13:40):
Yeah, so we are so excited and pleased with our first quarter results. Getting out of the gate strong in Q1 is fantastic, especially after we had a monster Q4. And so we once again outperformed our guidance across all the top line and bottom line metrics. And beyond that, to your point, we actually raised our full year revenue guidance. We don't always do that in Q1. So Q1 is our seasonally smallest quarter. There's still nine months in front of us. And let's be clear, the macro is still not great and uncertain. So the fact that we actually raised it more than our Q1 B is I think telling my investors that we feel really good about the demand environment. We feel really good about our results, but even beyond the numbers, and I said this in my earning script, our greatest asset is our people and they just continue to deliver the right mix of innovation and execution each and every quarter, which really enables these results to be possible.
(14:47)
So super excited. I always give credit to the and the talent of this organization because we couldn't do it without them. But if I actually look at the results and peel the onion back a little, let's start with the numbers. Subscription revenue growth of 24.5%, which is approximately 50 basis points ahead of the guidance operating margin over 30% CRPO, which is our backlog. So how much of our business is already booked for the next 12 months, grew 21% over a hundred basis points higher than a guidance, and this momentum really carried into large deal volume. So Q1 we talked about not traditionally our biggest quarter, not traditionally a big deal quarter yet. We increased deals over 5 million in net new a CB by a hundred percent year over year and grew deals over 10000300%. So really strong out of the gate results. Some incredible customers including Ulta Beauty, which was a new customer, a new logo, really excited about governments of Italy and Australia.
(15:55)
And so the fact that we had strong results and raised our full year guide so early in the year I think is testament to the durability of the business. And to your point, our gen AI skews two quarters out. So we just launched literally on September 30th. So we've only been in market for two quarters and it's the fastest growing first product ever that we've had. And so Genai, as we talked about, is really resonating with our customers and we are really excited not only because it's still so new, our core business did phenomenally well as well. And I try to remind investors, genai is doing really well two quarters out, the adoption curve is faster than any new product launch ever, but our core still remains phenomenal and doing phenomenally well.
Austin Hankwitz (16:51):
And before I jump into my next question, because I love that you called out major shout out to the employees and just the team members who are always building alongside of you here. But before I jump into a little bit about that, do you have any additional color you can add around the incremental revenue gain from this? I mean fastest rollout of product ever. I know for example, we see names, obviously you guys are not a hardware company, you're not making chips and semiconductors, but then you can think like, wait a second, Broadcoms and Nvidia, they've seen a massive real revenue uptick from this AI adoption. And so I'm just curious if you have any additional color to add about what that incremental revenue could look like, maybe not today, but perhaps over the next 24, 36 months if you have maybe a target of total revenue share that you're excited to see begun now to accelerate related to ai.
Gina Mastantuono (17:44):
Yeah, great question and one that I get often from investors as you would imagine first and foremost, I mean the Nvidia is doing incredibly well. Whenever you see new technology advances, the first to kind of jump is going to be the hardware and the infrastructure. Rightly, you got to buy the stuff before you deploy the stuff. And so the next phase is when you start to see software, which is where we play. And so like I said, and what we're really proud, the adoption curve for these new skews are faster than any other product category that we've ever had, but still early days in the software arena. What I'd say is that we have our investor day coming up on Monday, so I can't give you too much of a scoop, but we absolutely believe the opportunity for gen AI and software and ServiceNow, especially because we are early to the game and have been investing so broadly is meaningful and we are really excited about the traction we've seen so far and expect that gen AI will be a meaningful increase to our business going forward.
Austin Hankwitz (18:57):
Speaking of investor day on May 6th, I'm not sure when this episode's going to go live, so if it's after May 6th, be sure to go and watch the recording, check out the presentation on ServiceNow's investor relations website. Your r and d headcount to your point is up 17% year over year, which is telling me that we're in the early innings of your gen AI investment and monetization strategy. So for the people who are tuning in on May 6th or reviewing that presentation, do you have any exciting headlines that they should be really tuning into? What major themes or trends should they be listening for beyond just maybe gen AI as well?
Gina Mastantuono (19:38):
Yeah, so first of all, I think your listeners and viewers, if they do view will definitely get a lot of detail about our Gen AI products. You'll get demos, you'll get a really strong sense of the strategy behind what we're talking about as well as the potential opportunity from a monetization perspective. And we've talked about the fact from a monetization perspective, we expect to be able to get realized price uplifts of about 30% on gen AI SKUs just because of the value added. We are very focused on value selling when we sell our products and we give about 90% of the value expected to the customer and only keep a small portion. And so we're excited. You'll hear more about it on May 6th, I love it. But beyond ai, again, I go back to our core business. We have been innovating for years and years on the platform and you'll hear us talk about what we've been doing in operations, what we've been doing in customer service.
(20:42)
And so not only will you see some great demos on ai, but you'll more broadly our technology roadmap and strategy. And we're not just a one horse pony kind of company. There's a lot of really great innovation coming out of our company on an annual basis. We more than I think we really are very focused. You talked about RD headcount, we invest very heavily. We're super disciplined. I'm sure we'll talk about numbers in a minute. We're super disciplined on the cost side, but we absolutely invest really heavily in fingers on keyboards, engineers, writing code, driving innovation, as well as feed on the street sales folks. It's our bread and butter and we'll continue to invest there. Always.
Katie Perry (21:33):
Gina, I want to ask about competitive landscape because I think what's interesting about the space you're in is it's a growing market and I think I read commentary somewhere that someone doesn't necessarily need to lose for someone else to win. It's growing. And one thing that's interesting I think about tech is it just feels like a tangled web of frenemies collaborators. And I know you guys are working, you have key partners that maybe have, they're plugging in other places have similar offerings, so I'm wondering global spending on it, enterprise software, enterprise software overall, we're looking at a trillion dollars a year by some estimates. And I'm curious how you all fit within that market and which slice you're occupying.
Gina Mastantuono (22:16):
Well, I think it's a little bit of both. IDC has talked about software been increasing in 2024 by about 7%. So technology budgets are increasing, but we have been growing our share of wallet over the last several years. And I think it goes back to a couple of things I talked about earlier. It's a platform approach and from a competitive perspective, we're the only company that literally has the ability to orchestrate these complex workflows across the enterprise, whether you're in hr, it, customer service, finance, I talked about that earlier. And so platform consolidation, to your point, the tech stack has gotten really complex, which drives risk, a lot of cost, cyber issues. And so the ability to consolidate on one platform across the enterprise has been I think a winning strategy for ServiceNow. And one of the reasons why, not only do we see it spending growing, because as I said earlier, the digital strategy is becoming the business strategy for every industry.
(23:27)
ServiceNow is winning as well because we're able to do that very effectively across the enterprise. We often say that no one necessarily has to lose for us to win. You have these systems of record and investments that companies have made billions and billions of dollars in their tech stack, and you don't have to rip them out to get more value from them. ServiceNow can sit directly on top of those systems of record and really help automate a lot of manual processes across the enterprise. So that's why we often say no one has to win for us to lose while at the same time you're absolutely seeing platform consolidation across the board and why I think you'll see with gen ai, it'll be interesting to see do the bigger companies continue to get bigger because they have the ability to invest really heavily in this incredible technology.
Katie Perry (24:24):
And what about consultancies, because I know in the past that was the go-to for digital transformation, big companies would hire them to sort of figure things out. Are consultancies recommending you all to their clients or are you kind of getting that business now directly from the brands themselves?
Gina Mastantuono (24:41):
Yeah, so our partners, the consultants, our partners are a huge part of our value and they're incredibly important to us today and tomorrow. Most of the large systems integrators have committed to building over a billion dollar businesses with us. And oftentimes ServiceNow is one of their fastest growing practices within the company. And so they are a huge part of what we do and are extremely important to us and the relationships that we've been building with all of them I think couldn't be stronger and they're absolutely leaning into gen AI and how genai can help their customers or our joint customers really help get the outcomes that they're looking for.
Katie Perry (25:28):
Alright, so you've been at ServiceNow four years and counting over four,
Gina Mastantuono (25:34):
Four and a half. Four and a half.
Katie Perry (25:37):
Awesome. I'm market cap up three x, as you mentioned, a lot of early win with the gen AI acquisition. I'm curious from your seat on the executive leadership team, what that feels like to grow at that rapid of a pace, especially I feel like we all feel like the last four or five years has felt like one two years. And so I'm wondering what were the core changes on the executive team that you had to make to keep everyone aligned in moving quickly and with speed at the org as you were rapidly growing during that time?
Gina Mastantuono (26:08):
Yeah, it's a great question. And so I took the role, it was January, 2020, so we went home about 70 days later and the world was probably the most uncertain it has ever been in our generation. And not only was there a CFO transition, we also happened to be in the middle of a CEO transition. So Bill had started just two months before me. And so it's one of the things I'm absolutely most proud of in my career because I also switched industries. So software was brand new to me all during this time. And so the focus, especially in those initial months was about really spending time with customers, really spending time with investors, trying to get them to understand what was happening, really building credibility in a space where there was so much uncertainty, building credibility with our employee base, which was 10,000 at the time, now more than 23,000.
(27:10)
And so there was a lot going on. And what I would say communication and trust and transparency were so critical during that time. And I learned a ton because as a CFO or anyone in the c-suite, you want to have answers to all the questions. You asked me a question today, I want to be able to know the answer off the top of my head, we didn't have answers. And so as a leader, how do you motivate, inspire when you don't have all the answers? A lot of folks just kind of retrench and don't say anything because they don't know what to say. And Bill and I and the entire leadership team really leaned into, no, no, we're actually going to increase the pace of our all hands. We're going to increase the velocity of our communications. And if we don't know the answer, we're just going to say we don't know.
(28:06)
Oh, but by the way, we don't know, but this is how we're going to think about it. When are you going to come back to the office? I don't know. But first and foremost, the health and safety of all of you are most important. How are we thinking about things? And so that trust and transparency, not only with our employee base but with our customers and investors, I think built a ton of credibility. And by the way, we were super focused on how can our technology help during this crisis, we literally were in a room and it was probably about three days before we all went home, but we knew that something big was happening and we said, how can our technology help? And we literally within 48 hours built emergency response applications and gave them away for free to companies, to states and local governments to really be able to help citizens and help people.
(28:59)
During that time, we fast followed with the return to office application and then a vaccine administration application all built really, really quickly. And so I think part of it was leadership, but part of it was really focusing on those three critical things, trust, communication, transparency, and leaning into how our technology could really, really help. And you fast forward today, our trajectory has been an incredible ride. I tell everyone I'm in my dream job. You said the market cap is three x where it was when we started employee base from 10,000 to over 23,000, we became a Fortune 500 company last year, which is super exciting. And we achieved our long-term goal of surpassing 10 billion in annual revenue, which is only a handful of softwares have ever really achieved. And so really excited about the trends, but I think it's been a focus. The leadership team is really aligned. We spend a lot of time together. Leadership is important and it's not only about being a subject matter expert in what you do, but it's really about being an enterprise leader and looking across the organization and connecting dots and really leaning into our talent and our people.
Austin Hankwitz (30:23):
Well, what else you should be very, very excited and proud of is that you all ranked number three by Glassdoor as best place to work in 2024, only behind Bain and Nvidia. So you mentioned trust, communication, transparency. Are these the three pillars that allowed you to rank so highly? Is there any other additional information you can give us as to how you're building culture at ServiceNow to be a best place to work in 2024?
Gina Mastantuono (30:52):
Yeah, I think we all at the top leadership team know that we don't succeed without our people and we have a people pact, which is our North star, and that's a commitment that at ServiceNow will help you do your best work, live your best life, and fulfill our purpose together. And we live that each and every day. And so yes, we're so excited we're climbing up these workplace lists each year. Glassdoor, you mentioned number three in the us Fortune most admires companies lists for five years consecutively one of the world's most ethical companies from sphe. And so culture matters and we're super focused on making sure that our approach to talent is kind of front and center. And we talk about the digital strategy being the business strategy, while our talent strategy, our people strategy is also a huge part of our overall business strategy.
(31:54)
And layoffs are really hard on culture and people remember how you treat them. And while we've always prioritized growth and profitability, we didn't have to do mass layoffs like most tech companies did. In the past couple of years, we've really been very focused on talent from the get go. Last year, ServiceNow had over a million job applicants, and that's for just while we have 23,000 employees. We don't hire 23 a year, we only hire about 5,000 a year. And so I think that our focus on people and the culture that ServiceNow is one of the real, I think marks of our success.
Austin Hankwitz (32:39):
Wow, that is incredible. Thank you so much for walking us through that and I'm inspired, I'm ready to go apply for a job at Service now
Katie Perry (32:46):
To
Austin Hankwitz (32:46):
Hear mad.
Katie Perry (32:47):
Can I go work there? I'll literally do anything. It sounds amazing.
Gina Mastantuono (32:51):
I love it. I truly believe that we're a winning company because of our culture, our innovation, and first and foremost, our people.
Austin Hankwitz (33:00):
Gina, thank you so much for joining us on this episode of After Earnings. I learned a lot. I think our listeners did as well. And hopefully we have you back again very soon. Before we wrap though, I know you guys have an analyst day on May 6th, so if our listeners want to review those presentations or tune into anything like that, where can they find more information?
Gina Mastantuono (33:20):
Well, thank you Austin, Katie for having me. And yes, our investor day is on May 6th and they can tune in or they can go to our investor relations website and see all of the materials and videos of the presentation. So I hope you all join us and I would love to come back anytime.
Austin Hankwitz (33:39):
Thanks so much.
Katie Perry (33:40):
Alright, we just wrapped up our first interview with a company of over a hundred billion in Market Cap, that being ServiceNow. Austin, what stood out for you in this conversation?
Austin Hankwitz (33:52):
Katie, I really enjoyed what Gina had to say about working closely with our customers. I think that's such an underrated winning strategy, especially in tech when you're not just building an idea, building a product, building a hunch, but you're actually building to solve a problem that your customers have. That's how these companies find them themselves in great situations like a three X in market cap over the last four years. That's a great situation to be in. What
Katie Perry (34:18):
Really stood out to me was just the early vision of AI that they had, and it was such a strong viewpoint from their original founder that AI could really be an amplifier of existing talent. And that's kind of what they've been building since then. So even learning about tools they have the text to code solutions they have for engineers that has almost 50% acceptance rates with this only being live for two quarters. This kind of thinking I think is really interesting in the context of broader conversations of what role AI will play within the future of work. And I think it's very interesting that they're kind of planning their flag in using it to amplify the talent you have and doing much more with what you have versus doing more with fewer people. And I think that was such an interesting insight that they had far earlier than a lot of people.
Austin Hankwitz (35:08):
Yeah, I know we're filming this episode a couple of days before their investor analyst day, whatever they want to call it there on May 6th, so I'm eager to tune in on May 6th to learn more about not just what they're doing with Gen ai, but how they plan to monetize it. Gina mentioned that they're able to ask for a 30% increase on sort of ticket price on the specific software they're selling when they include gen ai. So I'm just super curious to see how that does shimmy down to the bottom line and how that impact free cash flow, operating, cash flow adjusted ebitda, things like that. There are business that's grown into the now over 10 billion in annualized revenue, which is a massive feat for any company to achieve, especially a technology business. So what a great interview with Gina from ServiceNow and hopefully she comes back. I think she was a real one. I really enjoyed speaking with her.
Katie Perry (35:59):
Yeah, hopefully Gina comes back soon with some more updates With that. I'm Katie Perry. This was after earnings brought to you by Stakeholder Labs in Morning Brew.
