SANTA CLARA, Calif. - ServiceNow (NYSE: NYSE:NOW), a leader in AI-powered business transformation, has announced significant data enhancements to its Now Platform, including the introduction of RaptorDB Pro, a high-performance database that promises substantial improvements in transaction times and analytics speed. The company revealed these updates alongside the new Now Platform Xanadu release, which adds a suite of AI and automation innovations.
RaptorDB Pro is designed to centralize operational data and analytics, allowing more employees to access real-time insights. According to ServiceNow, early use cases of RaptorDB Pro show a 53% improvement in transaction times, a 27-fold increase in the speed of report generation, and a threefold increase in transactional throughput across workflows. This enhancement aims to enable more users and workflows on ServiceNow instances.
Looking ahead, ServiceNow plans to introduce a unified Knowledge Graph early next year. This feature is expected to connect enterprise-wide data for real-time personalization, reducing the need for manual data mapping and complex integrations. The Knowledge Graph will allow for enhanced decision-making and improved supply chain management, among other benefits.
ServiceNow's chief technology officer, Pat Casey, emphasized the importance of evolving databases to meet the demands of today's AI-driven landscape. He stated that these capabilities are setting a new standard for data processing and analytics.
The company's core configuration management database (CMDB) and industry data models have also been enhanced to support mission-critical workflows across various industries. RaptorDB Standard, a precursor to RaptorDB Pro, is already available to new customers and will be accessible to all customers next year.
Additionally, ServiceNow is conducting the RaptorDB Lighthouse Program, which involves co-innovation with select customers to extend and scale workflows.
Furthermore, ServiceNow has recently acquired Raytion, which will enhance the enterprise search experience on the Now Platform, as part of its strategy to expand enterprise data capabilities.
RaptorDB Pro is currently available to both new and existing ServiceNow customers, while RaptorDB Standard will be rolled out to existing customers later next year. The Knowledge Graph is slated for launch in March 2025.
This announcement is based on a press release statement and aims to provide organizations with the ability to manage and analyze large datasets, revolutionizing operations and enhancing customer experiences.
In other recent news, ServiceNow has made significant strides in enhancing its AI capabilities and services. The company's Now Platform Xanadu release has introduced a range of AI-powered solutions tailored for specific industries, aiming to improve customer service and productivity. The newly launched Now Assist for Banking and Retail Operations solutions, for instance, are designed to streamline dispute resolution and unify retail ecosystems respectively.
Recent developments also indicate ServiceNow's commitment to expanding its AI offerings. The company announced plans to integrate advanced AI capabilities into its Now Platform, with the introduction of Customer Service Management (CSM) AI Agents and IT Service Management (ITSM) AI Agents slated for November 2024. This move is expected to improve resolution times and increase live agent productivity.
ServiceNow has also reported strong earnings, largely attributed to the influence of its GenAI technology in securing large deals. The company has announced the acquisition of Raizen to further enhance its GenAI-powered search and knowledge management. Analyst firms such as TD Cowen, BMO Capital Markets, Baird, Piper Sandler, and RBC Capital have increased their price targets for ServiceNow, following the company's impressive performance. Despite recent executive departures, analysts have expressed confidence in the company's robust team depth.
InvestingPro Insights
As ServiceNow (NYSE: NOW) continues to innovate with the introduction of RaptorDB Pro and the upcoming Knowledge Graph, the company's financial health remains a vital aspect for investors to consider. With a robust market cap of approximately $176.99 billion, ServiceNow stands as a formidable player in the software industry. The company's commitment to enhancing data processing capabilities is mirrored in its impressive gross profit margins, which reached 79.07% over the last twelve months as of Q2 2024. This level of profitability underscores ServiceNow's efficiency in managing its cost of goods sold and its ability to generate significant earnings from its revenue.
Investors should note that ServiceNow trades at a high earnings multiple, with a P/E ratio of 152.01, reflecting high investor expectations for future earnings growth. This valuation is further supported by the company's strong return over the last three months, which has been 20.65%. ServiceNow's strategic focus on AI and automation innovations, as seen with RaptorDB Pro, positions it well within the rapidly evolving tech landscape, which may justify the premium valuation to some investors. For those interested in deeper financial analysis, InvestingPro offers additional tips and insights on ServiceNow, which can be found at InvestingPro.
Moreover, the company's financial data indicates that its cash flows can sufficiently cover interest payments, suggesting a healthy liquidity position that can support ongoing investments in technology and acquisitions like Raytion. With a moderate level of debt, ServiceNow maintains a balance between leveraging opportunities for growth and maintaining financial stability.
For a more comprehensive understanding of ServiceNow's financial health and strategic positioning, investors can explore 15 additional InvestingPro Tips available, which provide a detailed analysis of the company's market performance and future outlook.
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