Bill called out Field Service Management, Customer Service Management had an amazing not only Q4 but 2023, and then employee workflow also grew. So, as I’m walking through this list besides Gen AI and then I can tell you the same thing about security, risk, and so our asset management had a phenomenal 2023. So, I expect all these product lines to continue to have momentum besides generative AI.
Samad Samana: Great. Thank you so much for taking my questions.
Operator: Your next question comes from the line of Alex Zukin with Wolfe Research. Alex, the floor is yours.
Alex Zukin: Thanks guys. So, first of all, congratulations on a fantastic quarter. And I think the amount of conversation about Gen AI and the tangible impacts of it on the model and the quarter were really great to hear about and see. I just — I wanted to dig in a little bit to see if you could dimensionalize further either from a revenue contribution kind of cRPO or bookings contribution in the quarter or attach rate that you’re seeing with Pro Plus as you go to market? And how should we think about that for fiscal 2024? What’s the aspiration here for Q1? Just give us a better — I’d say, a better indicator or something that we can kind of monitor and track where we can see the Gen AI penetration going forward? And I have a quick follow-up.
Gina Mastantuono: Sure, Alex, it’s Gina. What I’d say is and we called this out in my script, right? At the end of the day, Gen AI products drove the largest net new ACV contribution in the first full quarter of any of our new product family releases ever, including original Pro SKU. So, I get the question often, do we the adoption curve to be steeper for our Pro Plus than our Pro. Certainly, in the first full quarter of launch, it absolutely has shown that. That being said, it’s very early days. And so from a revenue contribution perspective, it’s not going to be huge, but it’s certainly helped when I thought about my guide for 2024 and that increase of $165 million at the midpoint, right? So Gen AI, early days, but the adoption curve so far is steeper than the original Pro.
We will keep an eye on it. And as the numbers get larger, we will continue to update you and everyone else as to the penetration. But right now, excitement and interest from our customer base is much stronger than we ever saw in the first — in early days of our Pro SKU, and we’re excited by that momentum at the same time being conservative as I think about the guidance for 2024 because it’s still so early.
Alex Zukin: Super helpful. And then I guess, if I think about just the opportunity around or actually just cRPO linearity throughout the year, you talked about the headwinds in the first half. How does that trend through the second half of the year? And then what other things should we be paying attention to there?
Gina Mastantuono: Yes. So, we called out the 150 basis point impact in Q1 that increases to about 200 basis points in Q2, so we expect similar levels from Q1 to Q2. I’m not going to guide out any further than that at this point. But what I’ll tell you is that I increased the full year 2024 guide by $165 million. We remain as confident as ever in our guide of $15 billion plus in 2026. And Gen AI and the innovation in our — all of our product portfolio is going to help drive that growth.
Alex Zukin: Perfect. Thank you guys. Congrats again.
Bill McDermott: Thank you, Alex.
Gina Mastantuono: Thanks Alex.
Operator: Your next question comes from the line of Mike Cikos with Needham & Co. Your line is open Mike.
Mike Cikos: Hey guys, thanks for taking the question here and I’ll echo my sentiment as well along with my peers. I just wanted to come back, I think earlier during the Q&A, CJ had kind of teased and maybe the monetization here for the Plus SKUs relative to the Pro SKU exceeding your expectations. And just wanted to make sure I was interpreting that properly. Can you give us any indication for what that price capture is like relative the Pro SKUs which we’ve had out in the market now for a couple of years?
CJ Desai: Yes. So, Mike, first of all, the Pro SKUs, as you know, that we launched it in 2018 Q3, so we have five years of consistent trajectory and measures on how we did on Pro across ITSM, CSM and so on. And that we shared at Financial Analyst Day in May. Gina shared that number that we got 25% uplift. When I look at Pro Plus, first, just to underscore what Gina said that it definitely exceeded our expectation, did really, really well and the fastest growth. We have launched so many products over so many years. This definitely exceeded our expectations. So, that’s number one. Number two, just simple thing. When I’m looking at what, based on the volume discounts, customers leaning in, asking us to try out from POC, POE perspective, it is in line with what my expectations were on how we would get the price uplift.
So, right now, as Bill said, I did not get any, Oh my God, CJ, this is not going to work for us, where is the value. We have to always earn our right and deliver the value for our customers. But right now, it is in line with my expectations.
Mike Cikos: Terrific. Thank you very much guys.
Bill McDermott: Thank you, Mike.
Gina Mastantuono: Thanks Mike.
Operator: Your next question comes from the line of Karl with UBS. Karl, the floor is yours.
Karl Keirstead: Okay, great. Maybe I’ll direct this to Bill and CJ. You both mentioned ServiceNow’s largest ever new customer win with the bank. I guess I’m surprised that there’s big bank out there that’s not already on ServiceNow, but I’d love to hear a little bit more about that, and I’m not even sure how big a deal would have to be to be your largest new win? So, any size and color would be fabulous.
Bill McDermott: Yes, I think we were — I think, Mike, you called it. I think we were at 23 out of 24 of the world’s largest and most significant ones. And now we’re at 24 out of 24. And I just seriously want to credit the amazing platform of ServiceNow, the MRA process and integrated risk management and the complexity of going into an environment like that is pretty serious stuff. And to have a marquee brand trust us and believe in us and believe in ServiceNow the way they did is really inspiring. And I really have to turn it over to CJ and give him so much credit for the hard work that he put into it. And I know firsthand because I had the front row seat to watching it and how we spent time with this wonderful customer. And CJ, I’m sure you got some color that you might want to put on that.
