Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>ServiceNow had a strong first quarter in 2024, outperforming guidance on all top-line and profitability metrics.</li><li>The company’s subscription revenue grew by 24.5% year-over-year on a constant currency basis.</li><li>Current remaining performance obligations (CRPO) rose by 21% year over-year in constant currency, which was above the company’s guidance.</li></ul>

ServiceNow had a strong first quarter in 2024, outperforming guidance on all top-line and profitability metrics.The company’s subscription revenue grew by 24.5% year-over-year on a constant currency basis.Current remaining performance obligations (CRPO) rose by 21% year over-year in constant currency, which was above the company’s guidance.

ServiceNow Inc: How Will The Adoption of GenAI Technology Impact Their Future Revenues & Profitability? - Major Drivers

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>ServiceNow announced 1Q24 results: total revenue increased by 24% YoY to US$2.60bn, in line with consensus estimate of US$2.59bn; non-GAAP net income grew by 46% YoY to US$707mn, beating consensus estimate by 7%, mainly driven by the enhanced operating efficiency.</li><li>cRPO was up 21% YoY on a constant currency basis in 1Q24, which is a 100bps beat versus pervious guidance, thanks to the strong deal acquisition in 1Q24.</li><li>For 2Q24E, management guide subscription revenue/cRPO to grow by 22/20.5% YoY on a constant currency basis, in line with the consensus estimates.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

ServiceNow announced 1Q24 results: total revenue increased by 24% YoY to US$2.60bn, in line with consensus estimate of US$2.59bn; non-GAAP net income grew by 46% YoY to US$707mn, beating consensus estimate by 7%, mainly driven by the enhanced operating efficiency.cRPO was up 21% YoY on a constant currency basis in 1Q24, which is a 100bps beat versus pervious guidance, thanks to the strong deal acquisition in 1Q24.For 2Q24E, management guide subscription revenue/cRPO to grow by 22/20.5% YoY on a constant currency basis, in line with the consensus estimates.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ServiceNow (NOW US) - Strong Adoption of GenAI Solutions

<ul><li>ServiceNow's Q4 2023 earnings present a compelling story of growth powered by artificial intelligence (AI).</li><li>The company reported subscription revenue growth of 25.5% at constant currency, 200 basis points above its guidance and cRPO growth of 23% at constant currency, also 200 basis points above its guidance.</li><li>In addition, the company reported 168 deals greater than $1 million in net new ACV, a 33% increase from the previous year.</li></ul>

ServiceNow's Q4 2023 earnings present a compelling story of growth powered by artificial intelligence (AI).The company reported subscription revenue growth of 25.5% at constant currency, 200 basis points above its guidance and cRPO growth of 23% at constant currency, also 200 basis points above its guidance.In addition, the company reported 168 deals greater than $1 million in net new ACV, a 33% increase from the previous year.

ServiceNow Inc: The Increasing Scope Of Its Gen AI technology And Other Major Drivers

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

<ul>
<li>Global Fund exposure in ServiceNow, Inc. hits all-time high with 20.6% of funds invested. Funds move to overweight.</li>
<li>Positive Rotation Across All Metrics Driven by Growth and Aggressive Growth Managers.</li>
<li>Positioning relative to technology sector peers suggests room for even broader market penetration.</li>
</ul>


Global Fund exposure in ServiceNow, Inc. hits all-time high with 20.6% of funds invested. Funds move to overweight.
Positive Rotation Across All Metrics Driven by Growth and Aggressive Growth Managers.
Positioning relative to technology sector peers suggests room for even broader market penetration.


ServiceNow, Inc: Global Funds Ramp Up Exposure

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

<ul>
<li>Blowout 4Q21 results headlined by (adjusted) 38% subscription billings growth - unbelievable for a company this size. </li>
<li>Generated a Rule of 75 Quarter (29% revenue growth + 46% FCF margins)</li>
<li>Multi-Module adoption continues to ramp, large deal sizes continue to ramp. At 12x forward revenues...incredible entry point.</li>
</ul>


Blowout 4Q21 results headlined by (adjusted) 38% subscription billings growth - unbelievable for a company this size. 
Generated a Rule of 75 Quarter (29% revenue growth + 46% FCF margins)
Multi-Module adoption continues to ramp, large deal sizes continue to ramp. At 12x forward revenues...incredible entry point.


United States

ServiceNow, Inc. provides enterprise information technology (IT) management software. The Company designs, develops, and produces prepackaged computer software, cloud services, and IT service management platform. ServiceNow serves customers throughout the United States.

Servicenow Inc (NOW US)

ServiceNow Inc: How Will The Adoption of GenAI Technology Impact Their Future Revenues & Profitability? - Major Drivers

ServiceNow had a strong first quarter in 2024, outperforming guidance on all top-line and profitability metrics. The company’s subscription...

Baptista Research

ServiceNow (NOW US) - Strong Adoption of GenAI Solutions

ServiceNow announced 1Q24 results: total revenue increased by 24% YoY to US$2.60bn, in line with consensus estimate of US$2.59bn; non-GAAP net...

CMB International

ServiceNow Inc: The Increasing Scope Of Its Gen AI technology And Other Major Drivers

ServiceNow's Q4 2023 earnings present a compelling story of growth powered by artificial intelligence (AI). The company reported subscription...

Baptista Research

ServiceNow, Inc: Global Funds Ramp Up Exposure

ServiceNow, Inc. has reached new heights in Global fund ownership, however, its position relative to technology sector peers suggests there is room...

Steven Holden

ServiceNow: The Platform of Platforms

One of the highest quality SaaS companies with an enormous runway of 25-30% growth ahead of it for years, with 20%+ operating margins and 30%+ FCF...

Aaron Gabin