ServiceNow (NOW): The System of Action

1. Executive Summary

ServiceNow is the "defining enterprise software company of the 2020s." Having conquered IT Service Management (ITSM), they have successfully expanded into HR, Customer Service, and Creator Workflows. They are effectively becoming the ERP of the 21st century by sitting on top of legacy systems (like SAP/Oracle) rather than replacing them.

Key Thesis Points

1. Platform of Platforms: CIOs love ServiceNow because it allows them to glue together disjointed systems without a "rip and replace" migration.
2. GenAI Monarch: Their "Pro Plus" SKU (Generative AI features) is the fastest-selling product in company history. It delivers tangible ROI by deflecting helpdesk tickets.
3. Margin Expansion: Despite massive growth, they are expanding margins, proving the operating leverage of the model.

2. Business Overview

• ITSM: The core helpdesk ticketing system.
• CSM: Customer Service Management (competing with Salesforce).
• Creator Workflows: Low-code app building for enterprises.

3. Valuation

• Premium: NOW is never cheap. It trades at a high multiple of sales because its execution is flawless and retention is best-in-class (98%+).

4. Risks

• Salesforce Collision: As NOW expands into CSM and Sales, they collide directly with Salesforce. This war for the front-office will be expensive.