ServiceNow Inc at Goldman Sachs Technology and Internet Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Wonderful. Well, it's a real delight to be able to welcome you to our conference, and thanks for being a keynote speaker. And Bill, we're in the midst of a pandemic, very unfortunate, and ServiceNow has been putting up strong performance. How sustainable is this performance?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Wonderful. Bill, you've mentioned that your aspiration is for ServiceNow to be the defining enterprise software company in the 21st century. That is a great statement. I'm curious if you can expand on it. What does it mean exactly for investors?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : I like how you describe that you hire 9s and 10s. That's a philosophy that Goldman Sachs shares with ServiceNow. The model is to hire the best person for the job, best person in the entire world for every job. That's something that we completely agree with you on, Bill. And also, you mentioned something about dreaming big. There's nothing small about dreams. That is something that I have to attribute to you. You are a big inspiration in my life, you talked to me to dream big. So thank you once again for that. Continue to dream big and have great aspirations for our industry, for you, your company, et cetera. So -- thank you once again. So moving on to talk a bit of vaccines, I think Goldman Sachs has been making a call that development of vaccines will lead to a V-shaped recovery in our economy. Our Chief Economist has been talking about accelerating U.S. GDP growth, which is fantastic to see, the ray of hope. How does that change or not change things at ServiceNow? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2021 / 10:20PM, NOW.N - ServiceNow Inc at Goldman Sachs Technology and Internet Conference (Virtual)

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Got it. And as far as the [level 1 of your] vaccines itself, once we all get vaccinated, does that change how the world looks like for ServiceNow?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : I can attest to that, because I was interviewed and onboarded during the pandemic virtually. I don't think I've met anybody from Goldman Sachs, except maybe one person. The smartphone was my onboarding tool, and it's been good. We've got some really good tech.

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Bill, you've been at ServiceNow for a little bit more than a year. What are some of the biggest changes you've made to the company at a high level?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Very inspiring. And I've got to say a far cry from the late '90s helpdesk software this industry owes its (inaudible). And that was a very different world.

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Got it. How has the go-to-market strategy changed amidst the pandemic? And how does virtual selling change this? How do you see the amount of deals being closed virtually versus trying to actually fly down to the customer to get deals done?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : I'm still blown away that there's so much diversity in your product suite and the market opportunity is potentially very sizeable. But how do you think about the market opportunity since you've got the story changing from what used to be IT Service Management and we got to ITOM and, more recently, HCM workflows, CSM workflows, custom workflows? Describe for us, if you will, how big this market opportunity is? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2021 / 10:20PM, NOW.N - ServiceNow Inc at Goldman Sachs Technology and Internet Conference (Virtual)

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Got it. And we know our competitors. We welcome to join us in Goldman Sach's forecast of $1 trillion opportunity for the cloud. So that's a big number we went out with officially a couple of weeks back. Bill, I want to just get your thoughts on the different sales and marketing competency pillars that you've got to build in each of these domains. It seems like we might -- we could just build a multimillion dollar business in just one of these pillars. How do you establish sales and marketing competencies to go about multiple domains when the buyers are different and the products are different?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Wonderful. I was planning on asking this a little bit later, but I think it's a perfect segue into the verticalization of ServiceNow just to use a very generic term. I watched, with great fascination, you execute the vertical strategy and this other technology item that you are associated with for quite some time. And here at ServiceNow, we've been talking about deepening practices with the systems integrators, whether it's Deloitte or Accenture, to develop them one of the specific projects, financial services, transaction processing, et cetera, telecommunications. Can you talk to us a little bit about, is luxury of things that you have in front of you, I think you have this vertical opportunity as well. So how are you prioritizing the vertical opportunity? And what should we be looking for from ServiceNow with respect to the vertical strategy?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Got it. Are there any unique applications that we can envision financial services, telecommunication. What are these integrators building that could make firms like Goldman Sachs to get more efficiencies out of the existing narrow investment that we have?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Got it. There's been a fascinating conversation. We've got about a minute left. And I wanted to get your thoughts on M&A. Clearly, the company has been blazing the trails on organic growth rate. At what point do you think about M&A? Maybe that's not on the horizon. Just quick thoughts on that.

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Awesome. On that note, thanks, once again, for being a keynote speaker at our conference. And thanks for being such a wonderful visionary, incredibly thoughtful leader in our industry. And thanks for all the inspiration and the mentorship, and last but not least, for being such a good friend. Thank you once again, Bill.

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : I love your outfit. Thank you so much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2021 / 10:20PM, NOW.N - ServiceNow Inc at Goldman Sachs Technology and Internet Conference (Virtual)