ServiceNow announced Tuesday that Bill McDermott will join ServiceNow by year-end 2019 as president and Chief Executive Officer and a member of the Board of Directors. McDermott will succeed John Donahoe, who is stepping down from ServiceNow to become president and CEO of Nike in January 2020.
To ensure a smooth transition, Donahoe will remain ServiceNow’s CEO through the transition period and will retain his seat on the company’s Board of Directors for the remainder of his current term, ending in June 2020.
McDermott brings to ServiceNow extensive global leadership experience in enterprise software and a proven track record of driving transformative growth and strong shareholder value. McDermott served as CEO of SAP from 2014 until this month and was co-CEO from 2010 to 2014.
McDermott recently announced his decision to not renew his contract and to step down as CEO, following a 17-year career with the company. He is joining ServiceNow following his transition from that role.
During McDermott’s tenure as co-CEO and CEO, SAP tripled its market value to approximately $140 billion, growing into a global software company with more than 437,000 customers in over 180 countries.
McDermott led SAP’s successful transition to the cloud and generated substantial increases in total revenue, profit, employee engagement and environmental sustainability.
Prior to SAP, McDermott held senior executive positions at Siebel Systems, Gartner and Xerox, where he started his career in sales and held a series of increasingly senior leadership roles throughout a 17-year career with that company.
In connection with the announcement, ServiceNow also provided preliminary third quarter 2019 financial results, as well as updated guidance for its full year 2019 financial outlook. As a reminder, the guidance ServiceNow provided on its second quarter earnings call on July 24, 2019, was based on foreign currency exchange (FX) rates as of June 30, 2019. These rates subsequently experienced declines.
The company’s full-year guidance issued Tuesday is based on FX rates as of Sept. 30, 2019. For the third quarter 2019, subscription revenues were $835 million, representing 35 percent year-over-year growth, adjusted for FX. Subscription revenues for the third quarter exceeded the mid-point of ServiceNow’s guidance by $9 million, excluding the impact of foreign exchange.
Subscription billings for the third quarter were $864 million, representing 29 percent year-over-year growth, adjusted for FX and duration. Subscription billings for the third quarter exceeded the mid-point of ServiceNow’s guidance by $10 million, excluding the impacts of FX and duration.
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