TMTB Morning Wrap Part 2 - NOW/TSLA/IBM

QQQs +51bps. We sent out Part 1 discussing META/MSFT earlier this morning. We’ll cover NOW/TSLA/IBM below…Out with Part 3 in a bit…

NOW -10%: Disappointing Q was Q4/Q1 cRPO miss

Misses on all the important KPIs with cRPO and sub guide missing, not a good look for a stock that was priced for perfection (45x EV/CY26 FCF) and used to a cadence of beats:

Q4 cRPO:+22% cc vs bogeys closer to 23%
Q1 cRPO guide 20.5% guide vs street at 20.5% and bogeys 21%
Q1 Sub guide revs 19.5% -20% vs street at 21% and bogeys of 21.5%
Fy25 sub guide of 19.5% -20% cc vs 21.5% and street at 21%

Likely hits most of sw agentic space today - TEAM becomes even more important tonight.

Reasons for the weaker guide - mgmt said 1) they are modeling a more 2H weighted US fed biz due to administration changes in Jan, but remains confident in pipeline and 2) new variables including rolling out its new Workflow Data Fabric product w a hyprid pricing struction & evolving GTM engagements to incorporate Agentic AI & consumption meters.