So it’s ending up a good year for Enterprise SaaS, fueled in part by AI, but also fueled in part by bounced off some lows in terms of overall enterprise IT spend:
- ServiceNow is worth a cool $230 Billion at $11 Billion in ARR — the 20x club! Its stock is up a cool +64% this year!
- Salesforce is now worth a cool $340 Billion at $38 Billion in ARR. Its stock is up a cool +40% this year!
Both are epic platforms.
But ServiceNow’s ARR multiple is far higher, as its growing at 23% a year, while Salesforce has dipped below 10% a year growth this year.
5 Interesting Learnings from ServiceNow:
#1. Highly Durable Revenue Growth, Still Growing +23% a Year Well Past $10 Billion in ARR (!). And RPO is Up +33% (!).
This is about as good as it gets at scale. Importantly, RPO (bookings) is accelerating, up 33% year-over-year. That’s a great sign for future growth.
#2. 2,000 $1M+ Customers. And 2 $100m+ ACV Customers (!).
Very, very enterprise.
#3. 98% GRR. Year after Year after Year.
The best of enterprise. No one leaves ServiceNow.
#4. Super Efficient — Rule of 50.
It’s “easy” to be efficient at scale. But to also grow 25% or so year after year?
#5. 26,000 Employees, So About $430,000 in Revenue Per Employee
This is the level of efficiency it takes to be a top-tier SaaS company at scale.
