ServiceNow CEO Bill McDermott Says Company 'Hungry And Humble,' With $10B Ambitions

ServiceNow Inc.’s NOW CEO Bill McDermott is confident the service desk software company will reach its goal of $10 billion in annual revenue, he said in an interview with MarketWatch.

McDermott, who was previously the CEO of SAP SE SAP and joined ServiceNow last year, said the revenue target is "an aspirational goal of ours."

The company's first-quarter revenue totaled $1.05 billion. 

ServiceNow plans to increase revenue through subscriptions, which make up 95% of its earnings. In the first quarter of 2020, the firm registered 37 transactions worth more than $1 million in net new annual contract value.

New clients include Merck & Co. Inc. MRK, the state of California and other government agencies, according to MarketWatch.

In total, ServiceNow has 933 customers with more than $1 million in contract value, according to MarketWatch.

As more companies turn to technologies like cloud computing and artificial intelligence, it is expected that cloud computing market will grow to $7.4 trillion by 2024.

McDermott describes the culture at ServiceNow as “hungry and humble.” 

ServiceNow's Q1 Report 

ServiceNow, which joined the S&P 500 index in November, reported first-quarter results Wednesday.

Adjusted earnings per share of $1.05 beat a 95-cent Street estimate, and sales of $1.059 billion beat the $1.02-billion estimate. 

NOW Price Action

ServiceNow shares were up 10.62% at $356.80 at the time of publication Wednesday.