=ServiceNow (NOW) : President and CEO John Donahoe departs to be appointed as CEO of Nike (NKE)

NIKE announces CEO succession plan; John Donahoe to be appointed as CEO, effective January 13, 2020

• At the same time, Mark Parker, CEO since 2006 and Chairman, President & CEO since 2016, will become Executive Chairman and continue to lead the Board of Directors and work closely with Mr. Donahoe and the senior management team.
• Parker took over as CEO from founder Phil Knight in 2006.
• Mr. Donahoe is the current President and CEO of ServiceNow (NOW) and also serves on its Board of Directors. Donahoe was formerly the CEO of eBay and is chairman of the board at PayPal (PYPL).
• At the end of September, Nike's head running coach, Alberto Salazar, was banned amid doping allegations, which reportedly included ties back to Parker. The New York Times reviewed emails from the U.S. Anti-Doping Agency that showed Parker had been briefed on Salazar's various experiments to use testosterone cream for track-and-field athletes.
• Bill McDermott stepped down from the CEO role at SAP SE SAP less than two weeks ago.

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ServiceNow appoints Bill McDermott as CEO, succeeding John Donahoe, who is stepping down to become CEO of Nike (NKE) in January; provides preliminary Q3 results and FY19 financial outlook

Mr. McDermott served as CEO of SAP (SAP) from 2014 until this month. He is joining ServiceNow following his transition from that role. To ensure a smooth transition, Mr. Donahoe will remain ServiceNow's CEO through the transition period and will retain his seat on the company's Board of Directors for the remainder of his current term, ending in June 2020.

In connection with today's announcement, ServiceNow is providing preliminary third quarter 2019 financial results, as well as updated guidance for its full year 2019 financial outlook. The guidance ServiceNow provided on its second quarter earnings call on July 24, 2019 was based on foreign currency exchange (FX) rates as of June 30, 2019. These rates subsequently experienced declines. The company's full-year guidance issued today is based on FX rates as of September 30.

• For the third quarter 2019, subscription revenues were $835 mln (GAAP), representing 35% yr/yr growth, adjusted for FX. Subscription billings for the third quarter were $864 mln, representing 29% yr/yr growth, adjusted for FX and duration.
• For full year 2019 guidance, ServiceNow is carrying forward the $9 mln in subscription revenues and $10 mln in subscription billings that, excluding the impacts of FX and duration, exceeded the company's previous mid-point guidance for the third quarter.
• For the full year 2019, ServiceNow expects subscription revenues between $3.240 bln and $3.245 bln (GAAP), representing 36-37% yr/yr growth, and subscription billings between $3.740 bln and $3.745 bln, representing 32-33% yr/yr growth, adjusted for FX.
• ServiceNow is maintaining its full year 2019 margin guidance as follows: subscription gross margins of 86%, operating margin of 21%, and free cash flow margin of 28%.