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
: Kash Rangan from Goldman Sachs. Bill and team, congratulations on a fantastic Analyst Day. I think it's your first in-person Analyst Day since you
joined ServiceNow. So great to see the energy, as you promised, on the earnings conference call, electrifying. I have a question for you, Bill, and
one for Gina.
Bill, when you look at the ERP market, you -- I think you're one of the few people in the world that understands that market inside out. You've done
a great job creating a CSM workflow market out of the CRM market. You created an Employee Workflow market out of the HCM market. Now you're
sitting on the next big -- I think you characterized it as a $400 billion TAM.
What is that you see, based on the patent recognition from your prior operating history, that could be the next -- so when are we going to see Gina
talk about that as being the next $500 million, $600 million run rate kind of thing? What is the unique opening that ServiceNow has that makes
you qualified to go after that market? I'll pause to get to Gina.
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MAY 24, 2022 / 8:30PM, NOW.N - ServiceNow Inc Financial Analyst Day
Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst
: What's wrong with that?
Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst
: And Gina, a question for you. Your -- the Rule of 60, the margin, right, what is driving that enormous increase in sales productivity? Maybe Paul can
opine on that as well? And as you look at your long-term margins, are you assuming sales productivity to go up at all? Because if it did go up at the
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MAY 24, 2022 / 8:30PM, NOW.N - ServiceNow Inc Financial Analyst Day
rate that it did, you would be in the Adobe class of operating margins of 45% plus. Not to put too much in your long-term forecast, but give us a
bit of your insight.
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