ServiceNow shares drop after Q3 results as Sierra adds $150M ARR

The author argues that B2B software budgets are shifting away from traditional seat-based SaaS models like ServiceNow toward outcome-based agent-native startups like Sierra. While ServiceNow reported strong revenue growth but faced market pressure from compressing margins and slowing backlog growth, Sierra reportedly added $150 million in ARR during a single quarter. The analysis suggests that enterprises are redirecting existing budgets toward AI agents that sell outcomes rather than tools sold per user. Open article →