Enterprise software deals slower to close as macroeconomics hit IT departments
Enterprise software deals will take longer to close for the rest of the year as inflation and geopolitical uncertainty hit IT departments, according to ServiceNow CFO Gina Mastantuono.
Speaking to a Citi Group analyst, Mastantuono echoed concerns of fellow large software vendors Salesforce and Workday who both presented evidence of a deal slowdown in their"We are assuming that the elongated deal cycles or the increased scrutiny on deals and approval processes will continue through the remainder of the year," she told investors, adding that the company had already taken the trend into account in its revenue guidance.
"Because we know now that approval levels are going a bit higher, we are spending a lot of time with our customers really ensuring that the business value proposition is there that they have all the data they need to make sure that approval process is running smoothly." In July, ServiceNow saw its valuation dip after it cut its sales outlook for the year. It is now expected to grow to between $6.915 billion and $6.925 billion, down from the $7.03 billion estimated in April.
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