SAP’s departing CEO Bill McDermott has been named the next chief executive of ServiceNow, the company announced Tuesday. McDermott will replace John Donahoe, who is stepping down from his role leading ServiceNow to become the CEO of Nike, according to a statement.
ServiceNow, makers of a cloud automation platform used for IT service and other functions, said McDermott will join ServiceNow following his transition from SAP. Donahoe served as the company’s chief executive since 2017, following his role as CEO of eBay. Donahoe has served as a Nike board member since 2014.
In prepared remarks, McDermott said he was “fired up” to take the helm of “one of the most exciting innovation and growth companies in the world”.
“The company has a transformational platform, immensely talented colleagues and limitless potential,” McDermott said. “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!”
ServiceNow also issued preliminary third quarter financial results and updated guidance for the fiscal year. The company said Q3 revenue will come to $885.8 million, up 32% from a year ago. Subscription billings for the third quarter were $864 million. For the full year 2019, ServiceNow expects subscription revenues between $3.24 billion and $3.25 billion with subscription billings between $3.740 billion and $3.745 billion.
Shares of ServiceNow were down more than 8% after hours.
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