As companies rolled out new digital capabilities to operate amid the coronavirus pandemic, ServiceNow reached a milestone among key customers, CEO Bill McDermott told CNBC on Monday.
In the third quarter, the cloud service provider signed its 1,000th customer contract worth over US $ 1 million a year – twice as much as a year ago.
“We were probably about half of it [last year]”Said McDermott in an interview with Jim Cramer, the host of Mad Money.” We’ve taken quite a step into the C-suite. “
ServiceNow, whose digital workflows have been a hot commodity among companies struggling to adapt to the digital world, closed a number of large deals in the third quarter that ended September 30th. Some of these corporate contracts include the NBA, WNBA, and Dell, as well as doing business with federal and state governments.
ServiceNow reported its best quarter among federal agencies, including nine federal customers with an annualized contract value of more than $ 10 million, which measures the expected revenue of each customer per year.
The Department of Veterans Affairs gave ServiceNow the largest deal in the company’s record in April, a five-year contract worth $ 96 million to modernize the agency’s IT infrastructure. The company also counts the US Air Force and the US Army among its customers.
“Today, digital transformation is this generation’s opportunity,” said McDermott.
ServiceNow’s shares rose 1.44% to $ 533.25 on Monday. The stock is up nearly 89% this year.