ServiceNow (NOW) delivered robust third quarter earnings, exceeding expectations on both revenue and profit. Additionally, the cloud-computing platform raised its subscription revenue guidance. ServiceNow CFO Gina Mastantuono joins to discuss the quarter's performance.

Mastantuono attributes ServiceNow's third quarter success to the company's achievements in generative AI, particularly its Now Assist feature.

"It's been the fastest growing new product in company history, and really what you're seeing is our gen AI solutions resonating. We talked about 44 customers spending more than a million dollars with us, six customers spending more than $5 million, and two spending more than $10 million on our gen AI products," she tells Yahoo Finance. "And what you're really seeing is our relevance as the AI platform for business transformation is soaring as CEOs are really looking to modernize for an AI world."

Addressing investor concerns about operating margins, Mastantuono explains how ServiceNow is constantly trying to balance "investment for growth versus profitability." She emphasizes the company's commitment to reinvesting in the business "to drive even more top-line growth," adding, "We're going to make that choice probably most days of the week."

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This post was written by Angel Smith