UBS’ Top Tech Based Disruptive Stocks For 2030: Top 29 Stocks

8. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders In Q2 2024: 97

ServiceNow, Inc. (NYSE:NOW) is a software as a service (SaaS) firm that provides business process management products and services. This means that the stock and the firm’s revenue are dependent on business activity which is influenced by economic health. Consequently, as the economy has continued to chug along in 2024, ServiceNow, Inc. (NYSE:NOW)’s stock is up 38% year to date. Over its four latest quarters, the firm has raked in $1.3 billion in trailing twelve month net income on the back of continued deal diversification. Through this, ServiceNow, Inc. (NYSE:NOW) grew its customers with recurring revenue greater than $20 million by 40% in Q2, and it added six new customers with annual contract value greater than $10 million in Q3. These metrics are key for SaaS companies like ServiceNow, Inc. (NYSE:NOW) as they help broaden the revenue base and add margin heavy revenue to the income statement.

During the Q3 2024 earnings call, ServiceNow, Inc. (NYSE:NOW)’s management shared key details about its deals:

“From an industry perspective, technology, media and telecom was very strong, growing net new ACV over 100% year-over-year. Retail and Hospitality also had a fantastic quarter, growing over 80% year-over-year. Health care and life sciences and manufacturing also saw strength. Year-to-date, U.S. Federal has demonstrated outstanding execution, further growing net new ACV on top of a phenomenal 2023. In Q3, we landed five deals over $5 million and two over $20 million. Overall, we once again achieved a robust renewal rate in the quarter reflecting the value ServiceNow consistently provides to customers.

The importance of the Now platform has driven the number of customers paying us over $1 million in ACV to 2020. What’s more, the number of customers paying us $20 million or more grew nearly 40% year-over-year, powered by large deal momentum. We closed 96 deals greater than $1 million in net new ACV in the quarter, including six with new logos. Among them, 15 deals were over $5 million and six deals were over $10 million. The proliferation of large deal reflects a greater emphasis on selling the platform, and with it, more products per transaction. In Q3, 18 of our top 20 deals included seven or more products. Our GenAI capabilities also continue to gain commercial traction in the quarter. As Bill mentioned, we now have 44 customers spending more than $1 million in Now Assist, including six over $5 million and two over $10 million.”