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ServiceNow Surges Ahead of Workday
19 Oct
Summary
- ServiceNow revenue grew 24% year-over-year in Q2.
- Workday's Q2 revenue saw a 13% year-over-year increase.
- ServiceNow's AI offerings surpassed $1 billion in ACV last quarter.
ServiceNow is widening its lead over Workday, demonstrating a faster revenue expansion. The company primarily offers cloud-based workflow automation software for IT, HR, and customer service operations.
In its second quarter, ServiceNow reported a 24% year-over-year revenue increase. This growth was significantly propelled by its artificial intelligence offerings, which achieved an annual contract value (ACV) exceeding $1 billion. Furthermore, ServiceNow expanded its customer base with over $5 million in ACV by 23%.
Workday, a provider of cloud-hosted human capital management and financial software, experienced a more gradual revenue growth of 13% year-over-year in the same quarter. The company also noted that AI capabilities drove over 25% of its new ACV in fiscal Q2.
While ServiceNow shows superior pricing power, Workday maintains a steady revenue stream, underscoring its solid position as a back-office software provider with high recurring revenue.
