ServiceNow Built a Billion-Dollar Cybersecurity Business, and It’s Growing Faster Than the Competition ServiceNow (NYSE: NOW), which is best known for software that helps automate workflows, spoke about its new cybersecurity vertical like a real competitor on its second-quarter…
ll recently. Its security and risk franchise crossed $1 billion in annual contract value last year, and CEO Bill McDermott claims it’s growing faster than the top cybersecurity companies
After having its cyber solutions included in 80% of the company’s biggest deals, McDermott stated, “we’re in the party now.” The stock has been hit hard over the past year as investors soured on SaaS (software-as-a-service) stocks. If artificial intelligence (AI) can run enterprise workflows, it’s natural for investors to lose faith in the terminal value of an expensive software stock. That’s the value assigned by the market after a company’s explicit growth period ends, and it’s how a stock can be crushed despite still posting solid quarterly numbers.
Even so, there are reasons to be optimistic about ServiceNow. Here’s why. Palo Alto owns the sensors One of the top industry players — Palo Alto Networks (NASDAQ: PANW) — recently proved that cybersecurity budgets are still expanding when it reported record results in June.