ServiceNow, Inc. (NYSE:NOW) Citi’s 2022 Global Technology Conference Call September 8, 2022 2:30 PM ET
Company Participants
Gina Mastantuono – Chief Financial Officer
Conference Call Participants
Tyler Radke – Citi
Tyler Radke
Good afternoon, everybody. Thanks for joining. My name is Tyler Radke. I co-head the software sector here at Citi. Welcome to Day 2 of the tech conference in-person. We have ServiceNow here, the CFO, Gina Mastantuono. I probably did not pronounce that right, Gina Mastantuono.
Gina Mastantuono
That’s better, better.
Tyler Radke
I’ll get it right by the end.
Gina Mastantuono
Yes, exactly. Second time was good. First time, not.
Tyler Radke
Not so good.
Question-and-Answer Session
Q – Tyler Radke
So Gina, thank you for making the trip out here. Good to see you. I thought we could just start off on the demand front, right? There has been a lot of discussion around macro crosscurrents. While this caused some deal slippage last quarter, it’s probably also opening up some new opportunities. Can you talk about what you are seeing when you talk to customers and how you are adjusting your go-to-market approach?
Gina Mastantuono
Wow, I wasn’t expecting that question.
Tyler Radke
We could start with current RPO, but…
Gina Mastantuono
No, no. I am totally joking. Thank you for the question. Obviously, it’s top of mind for everyone. So I am not surprised at all. But listen, I think what we have been seeing in July and August is giving me confidence in the guide. I remain as confident today as I did when I gave the guide. So we did see some elongated deal cycles at the end of Q2, primarily in the last couple of weeks of Q2. And really, what we saw was, deals getting higher level of scrutiny and more approvals that just elongated that sales cycle. So what’s great news is that a bulk of those deals have closed in July and August and from a linearity perspective, we feel really good about where we are today vis-à-vis where we expected, so as confident today in the guide for the back half. More importantly, while there is certain macro uncertainty out there as we all know the tailwinds that we are seeing from many different areas. So you think about platform consolidation, you think about the ability of ServiceNow to help our customers drive better productivity, greater efficiency and cost savings in this environment is more relevant than ever before. And so demand is not going away. Pipeline remains strong. We held our Big Knowledge user conference back in May, four locations around the globe and generated 40% more new pipe as a result of those conferences this year than prior years. As well, we actually saw open deal pipe, the customers coming to the events, greater than ever as well. So pipeline remains strong. Demand remains robust, but we remain cautiously optimistic given what we are seeing to-date.
Tyler Radke
Right, right. Look, it’s good to hear the continued optimism obviously on the demand front. I guess as we think about how your quarters play out, you are dealing with large companies like the Citis of the world, right, where a lot of these deals tend to close in the last 2 weeks. So I guess how should you encourage investors to think about that dynamic and how would you frame how you’ve set up the guide for Q3 Q4 given what you saw in Q2 where things really changed the last 2 weeks of the quarter?
Gina Mastantuono
Yes. Listen, like all software companies, we are very heavily weighted to month 3. That being said, because we are expecting these elongated deal cycles, because we know now that approval levels are going a bit higher, we are spending a lot of time with our customers really ensuring that the business value proposition is there that they have all the data they need to make sure that, that approval process is running smoothly. And so again, really leaning into the incredible product portfolio that we have, the ability for our products to help get quick time to value, really drive cost savings and productivity and efficiencies, leaning into that messaging as well as backing it up with data and spending a lot of time with the customers. As we always do, we stay close to the customers to really understand what they need to help drive and close deals.
Tyler Radke
Got it. Got it. And maybe for investors in the room, can you just frame how you thought about the specific impacts, whether it was close rates, by geo, what you saw in Q2? What surprised you and then what you are assuming for the rest of the year?
Gina Mastantuono
Yes. We are assuming that the elongated deal cycles or the increased scrutiny on deals and approval processes will continue through the remainder of the year. And so we took that into account with our guide. And so it’s playing out so far as we expected.
Tyler Radke
Okay, okay, great. And if we think about the business kind of by workflow, right, obviously, ServiceNow started in the ITSM space and has gone into things like employee workflow and experience workflow. How should we think about each product or each use case being impacted by some of these macro cross-currents? For instance, in this last quarter, we did see kind of the creator workflows downtick a little bit as a percentage of ACV in that disclosure. So should we think about maybe IT being a little bit more resilient or some of these others a little more macro sensitive, just help us understand some of the products and use cases with the context of the macro?
Gina Mastantuono
Yes. I think it’s really – you shouldn’t look at one quarter, the net new ACV by workflow as a trend, right. There is lumpiness in deal sizes throughout. And so demand really remains robust across the board. What I will talk about specifically is where we are seeing particular strength in this environment. So ITSM, the ability for ITSM to really help continue to drive productivity, efficiency remains strong. ITSM Pro, we talked about penetration of passing 35%. So that remains robust in this demand environment as IT is becoming the business and the need for IT resources, the ability to help deflect lower level incidences so that the people are actually focused on more value-added, more complex issues, more relevant than ever. If you think about our software and hardware asset management, in this environment where that’s really fast, quick ROI, quick time to value, how they can optimize their cost structure, really seeing some great traction there. Security and risk more relevant than ever and the ability to have one platform manage risk across the board, enterprise-wide as well as security really resonating very strongly today more than ever.
Outside of IT, you think about employee workflows. This uncertain demand environment is happening not in isolation. It’s happening amidst a very interesting talent market, right. So the employee experience remains more relevant than ever. The need to have your distributed workforce, and let’s face it, they are still distributed even if they are back in the office a few times a week, they are at home a couple of days a week. They are back on the road traveling. How do we make sure that those employees are staying efficient, productive and engaged in this environment, really relevant? From a customer perspective, there is always relevancy on driving top line, ensuring that your customers are happy, customer service is working well. And then creator, application development is a very big trend that we continue to see and the ability to create these applications low code on the trusted platform of the IT organization is more relevant than ever before. Citizen developers are becoming required given the tech talent. Every business is becoming an IT business and a tech business, right. And so how do we enable low-code development across the enterprise and our platform is already the trusted, secure and reliable platform of IT, that’s more relevant than ever. So the macro headwinds notwithstanding, the industry tailwinds that we are seeing really position ServiceNow well for today and the future.
Tyler Radke
Okay. So no real distinction across products you’d say related to macro or deal slippage just kind of across the board, deal delays not specific to certain products?
Gina Mastantuono
Not specific to certain products, I would say a little bit more in EMEA than elsewhere, but other than that, not product-centric or specific.
Tyler Radke
Yes, okay. No, that’s super helpful. So we have heard from a number of cloud consumption models, which you are a subscription model. So, this question is not necessarily directed at your business, but we have heard a lot around customers rationalizing or optimizing their cloud consumption, but their overall tech spending stuff. We see that in our CIO survey. ServiceNow has always been in this interesting position to kind of consolidate markets, right, whether you look in IT or outside. I guess with this backdrop of increasing optimizations, what are some of the newer opportunities you are seeing for customers to kind of consolidate spend and who do you kind of think you could displace?
Gina Mastantuono
So you are absolutely correct. I think ServiceNow is breadth of product portfolio really driving the ability to consolidate on a platform is definitely resonating and we are seeing that with the customers. Specifically areas that we continue to see – obviously, IT remains a core piece of our business. But I talked a little bit earlier about security and risk, we just closed this deal the other day with a big vendor – sorry, a big customer of ours across security. They are going to displace a lot of – and a lot of its homegrown stuff by the way. And so they are going to consolidate on one platform for risk across the board. So that’s a great area, security risk. And then again, we talked about creative workflows, how do we think about retiring some older legacy type of applications and consolidating all on the Now Platform? The creator and the low-code workflows really enabled that across the board. And so I won’t talk about particular vendors that might be displaced. What we do see is a lot of legacy homegrown stuff being displaced and taken out to really be on more modern architecture.
Tyler Radke
Okay, okay. So security risk, some stuff in IT. How do you kind of see yourself in observability in that context? Obviously, you acquired Lightstep and I think the product has been under the ServiceNow umbrella, under CJ’s organization for over a year now. So how do you kind of see yourself as a consolidator in that space?
Gina Mastantuono
Yes. We talk a lot about the relevancy with the DevOps community and really observability being a natural adjacency to what we already do. Lightstep is an incredible company with great technology and it’s really, really meant for modern architectures, distributed cloud-based architectures. And so that’s where they have grown up and done very, very well. As more and more customers are moving to more modern architectures, they are going to be very hybrid in their tech stack, right. And so we talk about observability and Lightstep in particular is not an either/or but an and. And how can we help on the modern architecture, be best-of-breed technology, really helping drive those insights and resolution and then the connectivity with our Now Platform to actually resolve it, really, really a competitive differentiator. It’s small right now for us. It gives us relevancy in that DevOps area, which is important. And we are really bullish on the opportunity in front of us, but still early days.
Tyler Radke
Thought of this. Okay, great. So you talked about the ServiceNow Knowledge conferences earlier this year. We also had an Analyst Day in Vegas where you gave us some updated targets, I think, $16 billion subscription revenue by 2026, implying over 20% growth trajectory from now until then. How would you just kind of rank order the top three important drivers to get there? Maybe it’s by product or by kind of expansion motions, help frame for investors out there how we continue to drive this growth at scale? What are the most important things that the confidence to put out a target like that?
Gina Mastantuono
Yes. I mean the confidence comes from multiple growth drivers, right? And so if you think about it, first and foremost, it’s about landing new customers. Our sweet spot, we talk about being customers or companies with 1,000 or more employees and $100 million or more in revenue. There are 50,000, more than 50,000 companies like that out there. And currently, we have less than 10,000. So from a new logo perspective and new customer perspective, there are a lot of runway ahead of us, right. So it starts with the land. And then it’s about expansion. Our existing customers, our new spend is about 85% in existing customers, 15% in new. So how do we continue to expand and expand more broadly, whether that’s wall-to-wall, right? So we’re in one country, but now we’re going to expand more globally or we’re in one division and expanding more globally. Then we have just the added product portfolio and how do we expand outside of just IT into our adjacencies like employee, customer and creator. And so from there, the opportunity grows. And we talked about at our Analyst Day 2 years ago, the fact that just with our existing customer base and demand that we see, we could grow top line by 5x. And so it’s all about landing new customers, the right new customers, right, at the right size that we really add value and can scale, how do we continue to create incredible innovation in our platform that allows the cross-sell and upsell across the board.
We talked just in the last earnings call about the fact that we have 11 businesses of products now with over $200 million in ARR, all built organically from this incredible innovation machine that ServiceNow is. So we will continue to innovate. We will continue to create great products that our customers love and we will continue to really drive not only the net new logos, but also our expansion rates. We disclosed at the end of ‘21, even at our scale, expansion rates of 125% that have remained consistent. Even as we scaled, 2022 expansion rates remain strong. And so it’s the multiple different levers that we have that give me the confidence in that long-term guide.
Tyler Radke
Right, right. So clearly, the 125% is probably not – I mean it’s not going to be sustainable forever. But how should we think about that kind of evolving over time? Is this going to be kind of a slow glide path down from there? Or do you think – I think you talked about it being greater than 125%. So it’s possible, it’s even higher.
Gina Mastantuono
I didn’t say it was greater. I said it remains strong.
Tyler Radke
Remains strong.
Gina Mastantuono
I said it remains strong. And I don’t guide to expansion rates. But if you think about the – and I just talked about it, if you think about the product portfolio and the continued innovation that we keep coming out with year after year, I expect expansion rates to remain strong, certainly through 2026.
Tyler Radke
Right. Right. So one of the interesting slides I thought from that Analyst Day deck was the pyramid where you had kind of the number of customers spending, it was – maybe it was $10 million and $20 million. I think you’re expecting roughly $50 million – or sorry, 50 customers spending $20 million in ACV. Maybe help us understand what does that look like? I’m sure you have that at some of your existing customers today, but where is ServiceNow deployed? And where do you think like the high end of that could go? Could it be $100 million at some of the biggest…
Gina Mastantuono
Yes, absolutely. You talked to Bill for sure.
Tyler Radke
Billion?
Gina Mastantuono
Yes, yes. No. But yes, I think some of our largest customers could get upwards of $100 million. The customer is greater than $20 million now. We actually have a couple of them that are just IT-focused, right? So the opportunity outside of IT and some of them remains enormous. Most of them, I would say, have a good cross-section of our product portfolio already, but still continued ability to grow and scale even at our largest customers. And so we feel really confident about that chart that we put out there. I think as you think about what you’ve been seeing even in the glide path of customers, our lands have been larger, our lands are more than three products in many cases. And so the deal sizes even while the lands are getting bigger. And then then then they are getting bigger, much faster today than they did just 5 years ago. And a lot of that has to do with the breadth of the product offering and the breadth of the product portfolio. So there are a lot of runway for our largest customers to get even larger as well as kind of the smaller customers, the $1 million becoming $5 million, the $5 million becoming $10 million. And again, it goes back to the incredible innovation that continues to come out, the organic innovation that continues to come out of the teams.
Tyler Radke
Right. And I think we talked about that earlier, you kind of have almost several what could be stand-alone SaaS companies within ServiceNow that were organically developed. I guess for some of the newer stuff that CJ and team are working on, what are you most excited about that maybe we can’t see or haven’t even really thought about today that could be meaningful in years to come? And what are some of the most exciting organic new innovations that CJ and team are working on now?
Gina Mastantuono
Yes. We continue to always innovate on the basic platform. So that might not be a new product, but how do we continue to add better capabilities, AI, machine learning, RPA into the platform such that we’re driving consistent automation, productivity. So you’ll continue to see more innovation there. We announced just back in May at the Knowledge Conference, our ERP workflows which are just being launched now, but have enormous traction and the partner ecosystem really excited about it. Our customers are excited about it. And why is that? It’s because the ability to innovate around that core ERP and pull some of the customization out into our workflows. It de-risks potential upgrades, it allows customers to get greater value out of their investments in the ERP. We’re leaning first into the procurement side of things, which if you think about the last couple of years, right? Supply chain is more relevant than ever, people relooking at entire supply chains. ESG, most people have climate targets out there and supply chain is a big piece of that. How do they manage that supply chain globally? These are all areas that we’re leaning into that I think are super interesting and can be super impactful in the coming years for sure.
Tyler Radke
Yes. Bill might know a thing or two about ERP.
Gina Mastantuono
Just a little bit, just a little bit.
Tyler Radke
Yes. So as we think about the inorganic side, how are you thinking about M&A in this environment? Clearly, valuations have come down a lot. You’ve had a history of doing tuck-ins, but perhaps there could be deals out there that are not meaningfully margin-dilutive, given where valuations have fallen. So just how are you thinking about that?
Gina Mastantuono
Yes, great question. And I obviously get this question a lot, and I’ve said to today a few times that I’m not lonely for bankers calling me today on potential M&A deals. And we’ve been pretty consistent with our messaging that we don’t need M&A and we don’t look to buy revenue, and we certainly don’t need it to get to our $11 billion and $16 billion targets. But we wouldn’t be doing our jobs if we weren’t always looking at the ecosystem out there.
We think of M&A and potential M&A, not only from the financial side, but more importantly or as importantly from a customer value perspective. What makes sense for our customers, how can we help them get to value quicker and better? How can we help them in their journey? And so if we found something that was strategically relevant, customer relevant while at the same time hitting our pretty – pretty important financial thresholds, right? And what do I mean by that? We have always been consistently focused on a balance of growth and profitability. We haven’t found it yet, but that doesn’t mean that we won’t. We’re always looking, but it’s definitely not the strategy and not the focus for us right now at all.
Tyler Radke
Right, right. Okay. Well said. So a couple on the competitive front, so obviously, you’ve talked a lot about consolidation. One of the things you did mention was around new logos. If you look at ServiceNow, I think you’re still under 10,000 total logos, which we look at larger companies, software companies out there, tens of thousands or hundreds of thousands. I guess, how should we think about your ambition on where that logo count goes over time and does that change the competitive landscape that all is if you go a little down market maybe it’s in the 1,000 to 5,000 segments different than the 5,000 plus segment. Just how does the competitive landscape change at all as you continue to pursue new logos that are maybe be little bit more down market from where you are?
Tyler Radke
Yes. As I talked about we are not looking to go significantly down market from where we are today, right. We have 1,000 and above, more than 50,000 out there, less that 10,000 today, what that final number is? We haven’t disclosed. But what I can say is that from a competitive perspective no one here offers enterprise-wide workflows, that is able to deal with the complexity that ServiceNow does, right. And so the opportunity that we have to continue to win new logos to continue to land and then expand more broadly remains – opportunity remains as good as I have ever seen. And so demand remains strong. We are really excited about the continued innovation that’s coming out of the house. And from a competitive perspective, the landscape hasn’t shifted significantly and we continue to win our great fair share.
Tyler Radke
Right. So almost sounds like there is 40,000 logos potentially up for grabs for you.
Gina Mastantuono
Potentially.
Tyler Radke
So what would those customers be using, is it kind of homegrown and some legacy on-premise solution just…
Gina Mastantuono
A lot, there is a lot of legacy homegrown stuff still out there. That’s right for automation, right for workflow. So, Bill and I often say that none of our competitors need to lose for us to continue to win, as you have seen as we have grown so amazingly, in the past few years.
Tyler Radke
Yes. Got it. Got it. So as we think about some of the workflows around customer service and employee experience, we often get the questions from investors, that sounds like something that Workday or ServiceNow does – or sorry, Workday or Salesforce does, how often are you running into them or is this kind of an area where they are not addressing or competing?
Gina Mastantuono
Yes. Great question I get it often as well. So, I will take that to management. So, on the employee side, we don’t really run into systems of records very often. We sit on top of the systems of record, really driving the action layer, right. And so we have incredible integrations with all the systems of record in the HCM space and continue to do so. So, we don’t come up against them from a competitive perspective, because they don’t do what we do. What we are able to do is help our customers get greater ROI on their investments already in the HCMs and make them even more powerful from an employee engagement perspective. So, that’s from the employee side. On the customer side, a couple of things. So, we also act as a system of action that sits on top. So, we don’t have to displace anyone, so if Salesforce is in there, we can sit on top of them and really help the investment in Salesforce to be even more productive especially on the customer service side. That being said, if they are not in there, we can be the engagement layer as well and we win our fair share when we go up against that. But again, I want to be really clear that our peers are fantastic and none of them need to lose for us to continue to excel and to win and to reach our targets.
Tyler Radke
Got it. Some of the packaging initiatives that you have introduced over the years, we talked on it a little bit earlier ITSM Pro, get the enterprise addition. Maybe just from for investors kind of the differences in those products? Is that – obviously, there is a pricing component, but you are paying for a lot more things or…
Gina Mastantuono
Value.
Tyler Radke
Exactly.
Gina Mastantuono
Correct.
Tyler Radke
So, what are customers getting when they upgrade and how far through kind of the adoption curve on those products are we?
Gina Mastantuono
Yes, great question. So, ITSM Pro, the added capabilities there are all about AI and machine learning, chat bots, how do we deflect incidences, the lower-level incidences. So, your IT people are focused on the more complex issues at hand. How do we also predict where there might be an issue to resolve that even before it becomes an issue. So, that’s kind of the added value prop for ITSM Pro. And if you think about what happened in 2020, where overnight, the entire workforce went remote and went home and no longer could you walk around the corner to the cubicle of your IT person and get things fixed, requests grew exponentially, and the IT resources did not. So, that was a really compelling value proposition and continues to be. And so we talked about at Q2 crossing 35% penetration for ITSM Pro. And that happened faster than we originally anticipated for sure and continues to be an area of increased focus for us. We have talked about the fact that we believe that ITSM Pro could get upwards of 55% penetration. So, while we are at 35% now, there is still room for growth there. Enterprise, and so we talk about good, better, best enterprise being our best has all the capabilities of ITSM Pro, added onto it, process optimization and workforce optimization. So, where are the bottlenecks in your processes that are causing issues, how do we find that, fix it, resolve it all within ServiceNow platform, pretty compelling value-add. Workforce optimization, well, the – any customer’s most important asset is their talent and their people. How do you optimize the workflow, how do we make sure that the right person with the right skills is getting the right problem to solve? How do you do that seamlessly that’s workforce optimization and the enterprise SKU? So, if you think about the customers that are going to really value that, that will be the larger scale customers, but that’s real value-add pretty quickly. Very early days, we have talked about – we haven’t talked about penetration, it’s super early, but we have talked about expectations that, that could get upwards of 20% penetration over time and so really excited. We just launched that last year. And so really excited about customers really understanding that value prop and finding it relevant, especially at the larger enterprise.
Tyler Radke
Right. And the price lift on enterprise is almost what, 25%?
Gina Mastantuono
Pro, across the board, even at 35% penetration has an average of 25% increase. Enterprise, it’s still early days.
Tyler Radke
Still early days.
Gina Mastantuono
You would expect – we expect something similar.
Tyler Radke
Got it. And I guess I am curious, as we layer on the macro environment, is there any impact on your ability to up-sell those more premium SKUs, or are those kind of happening as they were prior to some of the issues you saw in Q2?
Gina Mastantuono
Pro, for sure, remains consistent. And you can imagine in this environment, those capabilities, really relevant, really value-add, really driving productivity, efficiency and cost savings, which today, more relevant than ever. Enterprise, really early days. my expectation in all honesty, is that probably will be a little bit slower adoption in the current macro, but we weren’t expecting a huge uptick so early anyway.
Tyler Radke
Right. Still a lot of opportunity?
Gina Mastantuono
Oh my gosh, absolutely, especially mid and long-term. Maybe a little bit slower right now.
Tyler Radke
Yes. Okay.
Gina Mastantuono
But again, we weren’t expecting it to be huge in the early days. We are usually pretty conservative upon launch on our estimates.
Tyler Radke
Right. Got it. As we think about the sales force and kind of how you are hiring and recruiting for positions there, I think there has been a bit more of a focus on hiring vertical or sector specialists. Can you just give us an update on how that’s going and where we are in building that out?
Gina Mastantuono
Yes. Over the past few years, we definitely have taken an approach on not only expanding our core AEs, but also aggressively investing in more of the solution specialists in some industry verticalization as well, going extremely well. Even with that investment, you have seen in our Investor Day slides, sales efficiency really increasing and productivity increasing across the board. So, those investments have paid off, which has been great. You will continue to see us focus across the board on making sure that we have enough ramped quota-bearing AEs as well as specialists around the core, really helping to drive and close that demand that we see. So, even in the current environment, we have talked about the fact that we are continuing to hire feet on the street quota-bearing sales and that’s AEs as well as specialists, while at the same time, also making sure that we are investing around innovation and the engineering side. We have not slowed down, and we have been able to offset some margin headwinds that are resulting from FX with efficiencies elsewhere. At the same time, really focused on investments in go-to-market and innovation.
Tyler Radke
Yes. I would actually love to talk about that because I think while you did lower current RPO guidance, revenue guidance, you kept your margin guidance. So, what were you able to offset that lower revenue with? Was it maybe a little bit slower hiring or just more tight cost controls or just give us a sense for how you are able to do that? And if things were to worsen, could – do you still have more stuff that you could do?
Gina Mastantuono
Yes. Listen, we have always been, and I think our investors will know, we have always been a really disciplined company with how we think about spend especially in this industry, we will continue to be disciplined. And so while we are absolutely not stopping hiring on the quota-bearing feet on the street or innovation, mid and back office, we are being more prudent. We are also driving leverage in our core just by virtue of our business model, right. So, one data model, one architecture, one platform means that all of the innovation that we spend and invest in goes across the platform, across the product portfolio. What does that mean from a sales efficiency perspective, right. Our sales people aren’t having to learn a new platform, new issues. And so we have been able to generate leverage that way, and you will continue to see us do that. The other thing is that we drink our own Kool-Aid where customers zero on all products. So, the more we implement ServiceNow internally, the more leverage we have from a cost side. And so you will continue to see us do that. So, that’s where we have been able to offset, but I am keeping a close eye on FX, right. It continues to not be great. And so the one thing, hopefully, you all know about ServiceNow is that we are really transparent about how we think about investments. We are really disciplined on how we think about investments in ROI, and you will continue to see us do that.
Tyler Radke
Yes. Great. The last thing I wanted to touch on, we talked about M&A, but the other side of capital allocation. We saw Salesforce announce a buyback program for the first time. How are you thinking about capital allocation in this environment? Is that something that you are thinking about, or what do you think the best use of capital is?
Gina Mastantuono
Yes. First and foremost, the best use of capital for our company at our maturity and our trajectory is growth. And so you will continue to see us focused on growth, first and foremost. And we will always look to evaluate capital allocation as we continue to grow. But growth, first and foremost, whether it’s innovation internally, the small tuck-in acquisitions that you continue to see us do about talent and capabilities. They have been more expensive. Hopefully, they get a little less expensive right now. But you will continue to see us do more of that. And as our cash balances increase, we will continuously look at what’s the best use of cash, again, not also at a loss for banks calling and trying to help us think about that.
Tyler Radke
So, maybe just to wrap up, we can leave this a little open-ended. Just anything you wanted to highlight, we didn’t cover just the key message you wanted investors to take home with them as they think about the second half of the year.
Gina Mastantuono
Yes. Listen, I know that we are in a really uncertain macro environment, right, that people are really focused on today. But what I hope people understand about ServiceNow is that despite the macro environment that we find ourselves in, the secular tailwinds that we are seeing, cloud computing, digital transformation, IT is becoming the business and the fact that ServiceNow is able to not only help drive top line, but really help drive productivity, efficiency and cost savings in this environment means that the opportunity is greater than ever before. So, we remain as bullish as ever as the opportunity, both mid and long-term. And I am just always to say to everyone, I am in my dream job. I love this place. I love this company. And yes, I am excited to continue to drive in the same direction that you have seen us.
End of Q&A
Tyler Radke
Well, that’s a great way to end it. Gina, thank you so much for coming to the conference.
Gina Mastantuono
Thank you.
Tyler Radke
And thanks everyone for attending.
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