Thank you, Mark.
Mark Murphy: Thank you. Congrats on being so far ahead.
Bill McDermott: Thanks a lot Mark.
Operator: Our next question comes from the line of Arjun Bhatia with William Blair. Your line is open.
Arjun Bhatia: Perfect. Thank you guys so much and I’ll add my congrats. I wanted to maybe touch on the strength that you’re seeing in customer and employee workflows because if I look at the net new ACV that you’re driving there, the mix is relatively stronger than IT workflows there this quarter. Is that attributed to some of this AI adoption and plus SKU? Or are there other drivers there that you’re seeing driving momentum in those solutions?
Bill McDermott: Thank you very much, Arjun, and I really appreciate it. Just a couple of statistics on the customer workflows, 18 of our top 20 deals, what we’re seeing is there’s a tremendous opportunity to really take ServiceNow and squarely place it on the Customer Relationship Management category. When you think about front, mid and back office and the fact that we can align all three of those things, and nobody has to lose for us to win. We could fill in all the blanks for what the current participants don’t do, especially with their integration problems. It’s just a fantastic opportunity for our customers. And I think it’s important to note, when I gave the Field Service Management example, our net new ACV in Field Service Management, specifically was up over 50% and year-over-year.
So, I think it’s important to recognize that we have a whole list of new logos in this space. And employee workflows, nine of our top 20 deals and was kind of interesting. Every single CEO now is looking to make the people packed far more productive than it is and with natural language to have your employees seek the data and the information they want and have it reported back to them in just a very nice paragraph of content and data so they can do their jobs better, is kind of like in the no-brainer category. And we have some really great logos that I’m sure CJ would like to share with you as well. But both of those areas are really good. And incidentally, that employee spot that I mentioned was up 80% year-over-year.
CJ Desai: Thank you, Bill. And Arjun, some of the questions that you asked, you’re spot on. So, AI and specifically Pro Plus SKU was a catalyst, both for our employee and customer workflow. So, that’s number one. Number two, within customer workflow, which had an amazing quarter, and I’m so proud of that team and ServiceNow to cross $1 billion which just a few years ago was $10 million. That’s a multiple orders of magnitude growth on the difference we are making in customer service because we are ServiceNow, and we know how to do customer service. So, ServiceNow growth was unbelievable from customer service and customer workflow perspective. Two sectors, I’ll call out besides Bill’s point on Field Service Management. Number one, our telco products, specifically designed for telco industry, saw triple-digit growth with some of the largest telcos in the world related to customer service.
And also, we saw in public sector from a direct to citizen perspective, Customer Service Management Did really well in Q4. And on employee workflow, as Gina outlined, we had many million-dollar deals across the industries, including public sector and that business, in addition to HR service delivery with workplace service delivery and legal service delivery, continues to do very well, growing very strongly.
Arjun Bhatia: Great to hear. Thank you, CJ, thank you, Bill. Congrats again.
CJ Desai: Thank you so much Arjun.
Bill McDermott: Thank you.
Operator: Your next question comes from the line of Kash Rangan with Goldman Sachs. Your line is open Kash.
Kash Rangan: Congratulations, Bill, Gina, CJ. Great to hear that you’re among the first sort of software companies to give us splendid results and we feel better about 2024 already just based on your numbers. Bill, a question for you. It looks like generative AI making sales cycles easier, if I could say that, and has the potential to bring in repeat business with existing customers at a faster pace and magnitude. Can you talk a little bit about how much easier it has gotten despite the environment staying tough, but for generative AI, how much easier has it gotten for the company to generate that initial lead and close that deal and do more repeat business? That’s it for me. Thank you.
CJ Desai: Hey Kash. So, I will touch on this from a couple of things. demand environment, as Gina has outlined, it continues to be still tough, right? We are not ready to say that things have improved significantly. It is our platform’s strategic relevance, as Gina called out, is very high, which has allowed us to what you saw million-dollar deals and large deals that happened in our Q4 across the globe, across the industries, the performance was very strong. So, let me just touch on that. On generative AI the demand for generative AI varies by industry, but we are — I’ll give you an example of a large manufacturing company, the CIO reached out to me in October, wanted to do a four weeks POC and purchase it in December. So, from a sales cycle perspective, that was a top-down decision moving very, very fast.
A large retailer is currently also doing a proof of concept with ServiceNow Pro Plus SKU because it is a CEO initiative that Bill talked about. So, from a demand on Gen AI specifically, it is very, very clear that customers are pulling us in that direction in certain industries. And for those sales cycles, yes, they are very fast. They want to see a large manufacturing company CEO that Bill met in Germany, I had a follow-up call in December, and he said, CJ, I want to kick off on Pro Plus SKU for the specific use cases on ITSM. And you and I should review the results end of February. This is faster than ITSM Pro sales cycle. And so I would say overall environment is still similar from what we saw in Q3 to Q4, and Gina will touch on it, but Gen AI, it’s on a faster cycle.
Bill McDermott: Yes. May I also just add one thing, Kash. If you think about every single industry, they all have their own personality. So, for example, I had the opportunity to meet a pharma company. And as you know, the average life cycle, for example, for clinical trials is over six and a half years. And this is an industry that drops $200 billion a year on this clinical trial process and 90% of them fail. So, if you just think about that for a minute, you say, well, what can generative AI do to automate document generation, for example, that would be in line with regulatory protocols and you come up with site contracting agreements, for example, that also include the patient, because the patient has to be engaged in the process, otherwise, they won’t stay in the trial.
