11 Best Enterprise Software Stocks to Invest In

Page 4 of 10

7. ServiceNow Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 78

ServiceNow Inc. (NYSE:NOW) provides cloud-based workflow automation software. Its Now Platform empowers organizations to streamline and automate their business processes, improve operational efficiency, and enhance customer experiences through the use of AI.

18 of the top 20 deals in Q3 2024 included seven or more products from within the Now Platform. With its help, customers can streamline processes, improve efficiency, and gain insights through a single source of truth. The company is experiencing strong momentum in large deal activity with 96 deals exceeding $1 million in net new Annual Contract Value (ACV) in Q3. Furthermore, 15 deals surpassed $5 million, and six deals exceeded $10 million.

The adoption of AI-powered solutions, coupled with the launch of Xanadu, the company’s biggest GenAI release to date, is driving revenue growth, with subscription revenue growing 22.5% year-over-year at constant currency and RPO reaching 23.5% year-over-year at constant currency.

As customers continue to recognize the platform’s ability to streamline operations, improve efficiency, and drive business growth, ServiceNow Inc. (NYSE:NOW) is well-positioned for continued success in the dynamic and evolving market for workflow automation solutions.

Polen Focus Growth Strategy stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its Q3 2024 investor letter:

“In the third quarter, the top relative contributors to the Portfolio’s performance were NVIDIA (not owned), Shopify, and ServiceNow, Inc. (NYSE:NOW). ServiceNow reported better-than-expected sales and bookings during the quarter, with subscription sales up +23%. Encouragingly, GenAI offerings within its product suite, rolled out in late 2023, already appear to be an incremental driver of this growth. In our view, ServiceNow is a great example of a consistent grower, with a strong moat serving diverse and growing end markets with expanding margin opportunities over time.”

Page 4 of 10