- Outgoing SAP CEO Bill McDermott has been named the chief executive officer of ServiceNow and is succeeding John Donahoe
Outgoing SAP CEO Bill McDermott was named the chief executive officer of ServiceNow. McDermott will be succeeding John Donahoe — who is becoming the CEO of Nike. McDermott will join ServiceNow by year-end 2019 as the President, CEO, and a member of the Board of Directors.
Donahoe has been CEO of ServiceNow since 2017. Before that, Donahoe was CEO of eBay. And Donahoe has served as a Nike board member since 2014. Donahoe will become the head of Nike in January 2020. And in order 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 had served as CEO of SAP from 2014 until this month and was co-CEO between 2010 to 2014. And McDermott recently announced his decision to not renew his contract and to step down as CEO after a 17-year career with the company. Under McDermott’s leadership as co-CEO and CEO, SAP tripled its market value to approximately $140 billion and the company grew into a global software company with more than 437,000 customers in over 180 countries.
“ServiceNow is one of the most exciting innovation and growth companies in the world. The company has a transformational platform, immensely talented colleagues and limitless potential. Fred Luddy has given us an enduring foundation on which to build the company’s bright future. I consider it a personal honor to succeed John and help carry ServiceNow’s proud legacy forward to the next chapter. I’m fired up and can’t wait to get started!” commented McDermott.
Plus McDermott led SAP’s successful transition to the cloud and generated substantial increases in total revenue, profit, employee engagement and environmental sustainability. Before SAP, McDermott held senior executive roles 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.
“ServiceNow’s board is thrilled to have Bill McDermott join the company,” added Jeff Miller, Lead Independent Director of the ServiceNow Board of Directors. “His global experience and proven track record will provide for a smooth transition and continued strong leadership. Bill will further enhance ServiceNow’s momentum and reputation as a digital workflows leader committed to customer success, and as a preferred strategic partner enabling enterprise digital transformation.”
Ever since Donahoe joined ServiceNow in April 2017, he led strong customer expansion and oversaw consistent annual revenue growth of greater than 30% each quarter. Under his leadership, the company’s market capitalization has more than tripled.
“ServiceNow is a special company and leading the team has been an honor,” explained Donahoe. “I’m very proud of what we have accomplished together and our deep commitment to delivering for our customers. I am very confident in ServiceNow’s future and am confident that the team will stay focused on strong execution. I can’t imagine a better and more capable leader than Bill McDermott to take the company forward.”
ServiceNow also announced its preliminary third-quarter 2019 financial results and full-year 2019 financial outlook.
For ServiceNow’s third-quarter 2019, subscription revenues were $835 million — which is 35% year-over-year growth. And subscription revenues for the third quarter exceeded the mid-point of ServiceNow’s guidance by $9 million. The subscription billings for the third quarter were $864 million, which represented 29% year-over-year growth. And subscription billings for the third quarter exceeded the mid-point of ServiceNow’s guidance by $10 million.
In the full year 2019, ServiceNow expects subscription revenues between $3.24 billion and $3.245 billion thus representing 36% to 37% year-over-year growth. And ServiceNow expects full-year 2019 subscription billings between $3.74 billion and $3.745 billion, which represented 32% to 33% year-over-year growth
