SERVICENOW, INC.

I recently picked up my first new position in a while - ServiceNow $NOW. It's just a starter lot, but I saw enough to start building a position. Despite the rich valuation, here's a high-level view of what I like:

_Growth Trajectory_
- Ambitious, yet so far ServiceNow is outpacing some serious industry giants
- ~32% 5-year CAGR
- Consistently strong margins 77%+

![](https://cdn.commonstock.com/bf783e5b97e9d1ae097c3677b4970d318290912594d743066ec5b3c63fc964ee-2398x1112.png?fit=max&w=704)

_Cash Generating Machine_
- $1.8 Billion in free cash flow in 2021, with FCF margins continuing to increase annually (30.5% 2021)
- $2.6 Billion cash on hand

_Expanding TAM  as new products are added to the portfolio_
- <15% customer penetration
- ~$200 Billion TAM

_Massive growth with existing customers_
- $1M ACV customers tripled from 2017-2021
- 40% growth in $1M+ ACV customers in 2021
- 95% CAGR for $10M+ ACV customer count from 2017-2021

Customer cohorts: annual growth of initial ACV
![](https://cdn.commonstock.com/671848195512e0b32f5e79c7b504a4759e849eeda909c6341a5cbb46f08e876d-2378x872.png)

Still a lot of research to do on this company as I never really followed it closely. Initially, I am pretty excited about this.

$NOW really is a quality company and for that reason it never looks that cheap! One to leg into slowly.

Joshua Simka

Agreed. This company is very solid and impressive steady growth rates. A tad expensive in terms of valuation is what is keeping me from pulling the trigger however, maybe worth nibbling.

Jeff Sanders

New Position: $NOW

Bought to close all NOW

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