00:00You beat, you raise, revenues up 22%, growth in current remaining performance obligations strong.
00:05How much is AI driving this bill?
00:08Everything is about AI, Caroline.
00:11You know, right now, the entire global economy is being reshaped around AI.
00:17And what's unique about the ServiceNow AI platform for business transformation,
00:22it's one engineered platform that covers everything from your IT estate,
00:28how you manage security, operations, assets to the employee customer experience,
00:34and obviously also your engineers and how they build software using techniques like vibe coding and natural language.
00:43You don't even have to touch a keyboard anymore with ServiceNow.
00:46So it's a complete reinvention of how the enterprise runs.
00:50And what's different about us is we're putting AI to work for people.
00:54After all, what good is AI if it doesn't help people have a better life?
00:58You say that so well.
01:00And you've actually talked much about how AI internally is helping you cut costs, build efficiency, build productivity and profit.
01:08But what's so interesting, I think the key question for all of software right now is,
01:11why does AI LLMs not just eat your lunch?
01:15What is it that ultimately makes you specifically integral to the rollout of AI as it does upend the entire economy, as you say?
01:22The most important thing is to reinvent all of these back office operations and companies.
01:30So, for example, in our company, whether it's IT support or customer support or security and risk,
01:3790% of this work now is being done by agents, but not at the expense of people.
01:44The people in our company now have an AI teammate on their shoulder to do the things that they'd really never really liked very much.
01:54All the technical, tactical things that a computer or a machine can do very well.
02:00So we've re-skilled and re-tooled our teammates so they can do really great work.
02:05For example, engineering work or forward deployed engineering work with our customers or technical architects that help our customers navigate the AI universe that we're operating in.
02:18So it's meaningful work.
02:19It's exciting work.
02:21And it takes a leader to basically re-skill, re-tool, assess everybody in the company and train them for this new environment.
02:29So we all win together.
02:31And we're hiring, as you know.
02:32You're hiring.
02:34The companies you serve with enterprise software, they're not looking to just build it themselves.
02:40How do you distinguish that enterprise software has to be a link in the chain?
02:46It's the right question to ask.
02:48And it's very different in the enterprise than it is in the consumer world.
02:53What we built is an AI platform that serves the most complex companies in the world.
03:01Caroline, there's 60 years of legacy technology that has evolved in the enterprise.
03:06The enterprise is a really complicated place.
03:09So when you think about industries, whether it's financial services and managing the regulatory environment or all of the legacy complex systems that they have built up over many years, you're not going to solve that problem with a language model that's serving the interests of consumer productivity.
03:31That takes real enterprise AI.
03:33So enterprise AI is very different than consumer AI.
03:37But what's unique about ServiceNow is we integrated the platform with all of the hyperscaler clouds.
03:45They're all fantastic companies.
03:46We integrated with all of the language models.
03:50And we integrate with all the data sources in an enterprise so we can be that one AI platform that goes east to west and north to south to fundamentally retool how companies run their business.
04:05That one enterprise AI company, you're taking on Salesforce in a big way, Bill.
04:10I'm going to ask you to get a little fighty here because, look, you're in customer management, but they're looking to get into IT service management where you are.
04:18How do you compete?
04:19What companies are you taking away from them?
04:21Yeah.
04:22Well, first of all, what we do has been built over two decades.
04:27You've got to remember, there's only one company in enterprise software that has operated at the rule of 50 plus, and that's the combination of revenue growth and free cash flow margin.
04:39For ServiceNow, over a decade, we've been a 50 plus operator.
04:44No other company can say that.
04:45So we must be good at something.
04:47So what is it that we're good at?
04:48We have a configuration management database that literally manages the estate of all IT landscape, of all assets, and of all people and corporations in the global economy.
05:03Today, we call this workflows, and workflows are really business processes.
05:08It could be designed to build, lead to cash, procure to pay, hire to retire.
05:15These form in a workflow.
05:17That's become the hot button term, but we're the workflow company.
05:21Today, Caroline, we have 75 billion workflows in flight as you and I are having this interview, and they're conducting well over a trillion transactions for our customers.
05:32Very hard to replicate that, but now let's talk about CRM.
05:37We're reshaping the customer experience market, and how are we doing that?
05:42If you look at the market today, the providers in the market take their customers through a multiple cloud experience.
05:52So think about it.
05:53To serve a customer, I've got to log into seven different clouds, which means the customer is getting a very fragmented experience.
06:01With ServiceNow, we meet you where you're at, any channel.
06:06You can configure, price, and quote an order.
06:09We fulfill that order in the right form factor, and ultimately, we service that customer on one platform, end to end.
06:18And we did it the old-fashioned way.
06:21We actually built it ourselves.
06:22So this is a sensational moment for ServiceNow.
06:27We're breaking through, taking share all over the world, and we're only getting started.
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