SaaStr: High GRR Is Masking Real Decay at ServiceNow and Workday — Multi-Year Contracts Hide AI Churn Risk
SaaStr·high signal
SaaStr published analysis arguing that 97% GRR on multi-year contracts is not comparable to 97% GRR on annual contracts — only 33% of a 3-year base renews annually, so you can lose half your renewals and still report 90%+ GRR. ServiceNow's ITSM surface area (ticket triage, request fulfillment, knowledge management) is exactly what AI agents automate best. The contract is hiding the truth; the AI era will expose it.