Kirk Materne: Thank you.
Operator: We’ll take our next question from Alex Zukin with Wolfe Research.
Alex Zukin: Hey, guys. Congrats on another great quarter. Maybe just two quick ones from me. Clearly, you know, the story of this quarter was the unbelievable Federal growth that you guys posted. Maybe ex-Federal, to the extent of the incremental challenges, or lack of thereof from the macro and pipeline, like, what’s the story of the quarter ex-Fed, and then some of the deals that you guys referenced either on the Pro Plus side, or just a very large deal side, like, maybe talk a little bit about the competitive environment? Are you taking them away from some of your front office peers, or kind of how does that shape up as you look at the pipeline?
CJ Desai: Yeah, Alex, thanks for the question. This is CJ. First of all, you know, yes, Federal had a phenomenal quarter, and it’s been talked about by both Bill and Gina, but we also saw strength in certain industries, and certain geographies across the board. We won’t be able to produce these kind of results, and this kind of beat on cRPO with our strengths in other industries and other geographies. So that’s what I would say at the highest level that there were a lot of other strengths, and even from a use case or a workflow perspective, Bill already outlined, that our employee workflow, which is now customers are asking us this question that we want our employee productivity to be high, and what is ServiceNow’s solution because employees waste too much time swivel chairing or looking for information, so we saw significant growth there, but the growth was across the board, given from a workflow perspective as all four workflows grew very, very nicely.
And Alex, you know, how much I pay attention to that. The second thing I would say on Pro and Pro Plus, what we are seeing is that customers understand ServiceNow strategy is very specific to ServiceNow use cases. And one of the things that I realized after having this Pro Plus conversations with customers on a large sample size that, generative AI or our Pro Plus SKU is a productivity multiplier. It’s not a productivity enhancer. When you have a productivity multiplier, and you can articulate what kind of productivity gains they will get, that is when they say, okay, we got it. And now, let’s forget what are the pricing, and other things. So, competitive dynamics wise, from a generative AI standpoint for overall this Pro Plus SKU, it is still in the context of ServiceNow.
How much value will they get, how fast will they get that value, and how much they’re willing to pay.
Bill McDermott: And, Alex, if I may build on what CJ said, I can give you some additional color, if you like. One thing that might be of interest to you is in Americas, the number of $5 million plus deals actually more than quadrupled year-over-year, and the number of $10 million plus deal doubled year-over-year, and I think as CJ laid out beautifully, technology and employee workflows were enormously successful. And in EMEA, our 1 million plus deals grew 70% year-over-year now, which means that the platform and multiple components of the solutions that our great engineering team builds is resonating, and we’re seeing particular uplift now in government and manufacturing. And one interesting fact. We have these world forums coming up in London, Paris, Frankfurt, and Rotterdam, and we have 1 billion plus pipeline that’s registered for those events.
So, we feel good about that. And APJ, when you think about it, 1 million plus deals increased 40% year-over-year, and Japan is continuing to impress us with the unprecedented opportunity of the world’s third-largest economy as Germany is as well. So, we’re seeing lots of real growth opportunities on the global stage, and I think Gina pointed that out earlier as well.
