The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst
: Bill and Gina, outstanding, outstanding quarter. Bill, I wanted to just get your high-level thoughts, coming as we did -- after a
spectacular quarter and listening to your compadre, Satya Nadella, on his call yesterday, who talked about tech as a percentage of
global GDP going from 5% to 10%. I think he said that before, which leaves us with the inescapable conclusion that tech density,
enterprise tech density is just going higher. It's not the world from 10 years back where a couple of ERP systems and that's it. Now
it's thousands and thousands of SaaS applications and the whatnot. So where does that leave ServiceNow in terms of business
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OCTOBER 27, 2021 / 9:00PM, NOW.N - Q3 2021 ServiceNow Inc Earnings Call
prospects for spreading horizontally, vertically with your ITOM, IPS and the Workflow Engine, obviously, given that enterprise tech
density is just set to go from higher or even higher levels.
And 1 for you, Gina. When you look at this year, this year has been fascinating. Net new business has been accelerating for a few
quarters. I know that you've not given us thoughts on '22 yet, but how do you feel qualitatively stepping into 2022 with a renewal
base that looks very solid? Your net new business trends are getting better. Curious to get your thoughts.
Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst
: Gina, 3 months ago on the 2Q call, you prepped us in terms of the back half seasonality into thinking 3Q would be a little bit
subseasonal, 4Q stronger as you were seeing that deal skew. In fact, you put up numbers where the 3Q actual and the 4Q billings
guide of 26% are roughly even. So I'm just curious whether since you made that call, that seasonality 3Q, 4Q has changed and whether
it played out in the way that you expected.
Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst
: Congrats from me as well, guys. I guess whether it could be for either Bill or Gina. You mentioned -- I guess, there was an earlier
question from Alex on sort of the future of work. I'm just sort of curious, what is ServiceNow's philosophy on the future of work? And
I guess, Bill, I'm wondering, as reps, sales reps get out on the road and there's more in-person conferences, industry conferences, do
you suspect that, that could help improve pipelines even further than more of a remote selling process?
Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst
: Looking forward to that as we look into 2022. Congrats, guys.
Question: Arjun Rohit Bhatia - William Blair & Company L.L.C., Research Division - Analyst
: I'll add my congrats on the quarter. Bill, in your prepared remarks, you talked about companies consolidating, your customers
consolidating legacy systems on ServiceNow. I'm curious whether you're starting to get to the point where within the systems that
you're replacing, we're starting to see some maybe more modern SaaS applications that are being removed and folded into the Now
deployment as well. Or are we still at this phase where there's still so much work to be done on legacy on-prem systems so you're
not seeing those modern applications kind of fold into your platform?
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