ServiceNow says 50% of net-new revenue shifted away from per-seat pricing over the past year
AI Market Summary
ServiceNow management says AI is accelerating a shift from per-seat licensing toward hybrid, usage- and outcome-based pricing, with ~50% of recent net-new revenue coming from non-seat models. The firm cites rising workflow and transaction volumes and growing customer value creation from AI, supporting demand resilience while reframing monetization metrics. Near term, the narrative can influence software sector expectations around revenue quality, pricing power, and AI-driven operating leverage.
Impact level
● Medium
Affected assets
NCSKSNOW2USD/USDT-1.18%
AI Insight · NCSKSNOW2USD/USDTAI Insight
● Neutral
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ServiceNow Chief Product Officer Amit Zavery said 50% of the company’s net-new revenue over the past year came from non-seat-based models, as customers increasingly pay for enterprise software based on usage, outcomes and value delivered. He said ServiceNow’s AI capabilities generated $600 million in value creation for customers last year and could reach around $1 billion this year. ServiceNow currently runs 100 billion workflows and 8 trillion transactions annually, with transactions growing 25%.
