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Great overview

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Fantastic research and writing!

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Do you know why they guide lower gross margin next year?

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author

Didn't come across anything. They only mentioned they will increase spending in AI engineering, but will still continue to increase operating margins.

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Thanks for sharing! Nice read. One question reg. the last graphs, does it mean that at some point the multiple needs to catch up with sales? Or what does it shows? Thanks

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It shows how much historically investors have paid for these shares and how sales estimates have evolved subsequently.

Multiples typically de-rate over time, so as growth matures, multiples fall. However, with ServiceNow the opposite has happened, showing how much the market underestimated these shares historically.

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