ServiceNow, Inc. (NYSE:NOW) Q3 2023 Earnings Call Transcript

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CJ can give you some detail on exactly what we’re doing, but I really do want to say that, I am incredibly appreciative of our partners, and I want to thank our partners for recognizing that we’re a good partner, and it takes a good partner to know one, and we have really built foundational trust with the ecosystem and I appreciate them all, and I think that is another tailwind effect that we’re getting because I believe we’re moving into a world of not just intra-enterprise, but inter-enterprise business network opportunities, and I believe our platform in generative AI will fuel a completely new frontier of solutions, and offerings, and the global economy, and I think that this is only just begun. I just want to really give you that as a thought because we’ll have more to say about that in the future.

CJ?

CJ Desai: Absolutely, Bill. Right on. And, Derrick, you know, one of the things with this Lighthouse program that we were solving for is, have a great technology partner, and Jensen and the team are a great technology partner. Most of the — most of us know NVIDIA as a great GPU provider among other engineered systems. But in this specific program, what most do not know is that NVIDIA’s software team is working very closely with ServiceNow’s engineering team, to really innovate on generative AI, and that is a very important point as part of this Lighthouse program is the engineering collaboration between NVIDIA and ServiceNow and a software layer, which, obviously, that pushes the hardware in the right direction. And then, when these customers, we talked about the four customers, there have been many, who start using this product, as they need to get adopted, besides Accenture, there will be other partners that we are also training, enabling so that they can implement really, really fast the solutions that come out of ServiceNow.

So overall, this is a holistic strategy, engineering collaboration, and as Bill said, ecosystem collaboration, so that we can deliver the value for our customers. Customers’ demands are high on the value that we will deliver, and we need great set of brands, technology, and system integrators to deliver the craft.

Derrick Wood: Thank you for that color.

Operator: And we have time for one last question. We’ll take that question from Matt Hedberg with RBC Capital Markets.

Matt Hedberg: Oh, great. Thanks for squeezing me in, guys. CJ, a question for you. A lot’s changed in the observability market with the Splunk proposed acquisition. I’m curious, could you give us a sense for your positioning in the cloud observability market? With Lightstep and other advancements there, how well-positioned do you feel to gain additional share there? Thank you.

CJ Desai: Absolutely. So, you know, I would say observability is still fundamentally a big market. It’s a big market that continues to grow. We started with Lightstep, and as you are aware that they provided a great solution for tracing, and with OTL as an OpenTelemetry, they had done some phenomenal work. Then we added the metrics capability, and just end of September we finally added logging capabilities. So now we feel that we have a full-blown cloud observability solution that we can take to the enterprise market, and we will compete head-on what the types of use cases, that we need to, with whoever we need to, and that’s how I look at it. So, I’m optimistic. We have a lot of work to do. Finally, the product is there, full-blown cloud observability product between metrics, traces, and logging, we are ready to go. Thank you, Matt.

Operator: And that does conclude today’s presentation. We thank you for your participation, and you may now disconnect. Goodbye.

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