10 Cheap Robotics Stocks To Buy

2. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders In Q1 2024: 90

Price Upside: 7%

Average Share Price Target: $872.34

ServiceNow, Inc. (NYSE:NOW) is a sizeable software company that provides workflow process automation products. This makes it the only software robot company on our list. ServiceNow, Inc. (NYSE:NOW)’s software robots allow companies to automate their business processes such as those involving repetitive and rule based tasks. These allow for cost reductions and greater efficiency, and since ServiceNow, Inc. (NYSE:NOW) is one of the biggest names in the industry, it also benefits from brand recognition, deep customer relationships, and sizeable recurring revenue. Additionally, its scale means that ServiceNow, Inc. (NYSE:NOW)  investors focus more on cost control for its valuation as opposed to the cost and growth valuation for other software as a service (SaaS) businesses.

Lakehouse Capital mentioned ServiceNow, Inc. (NYSE:NOW) in its Q1 2024 investor letter. Here is what the firm said:

“US-based software company, ServiceNow, provided another strong result, continuing its long and consistent track record of 20%-plus revenue growth combined with healthy profitability. Subscription revenues grew 25% year-on-year to $2.5 billion and free cash flow grew 47% year-on-year to $1.2 billion. The company’s core operating metrics were also impressive with remaining performance obligations growing 26% year-on-year to $17.7 billion (i.e. roughly 2x 2023 revenue) and renewal rates holding steady at 98%. Performance was evenly spread across segments, products, and geographies, with notable strength in the US federal government. The company now boasts 1,933 customers generating in excess of $1 million in Annual Contract Value (ACV), which is pleasing to see as it implies multiple solutions are involved and that the company’s platform model is increasingly resonating with customers. In our view, ServiceNow is one the highest quality software businesses globally as the combination of consistent growth at scale, robust free cash flow generation and a large addressable market make it a compelling opportunity.”