ServiceNow Reports Second Quarter 2024 Financial Results
ServiceNow reported Q2 2024 financial results, surpassing guidance across all topline growth and profitability metrics. Subscription revenues reached $2,542 million, marking a 23% year-over-year growth. Total revenues were $2,627 million, a 22% increase. The company's current remaining performance obligations (cRPO) hit $8.78 billion, a 22% rise, and overall RPO totaled $18.6 billion, up 31% year-over-year.
ServiceNow experienced a 15% growth in customers with over $1 million in annual contract value, now totaling 1,988. Net new annual contract value (NNACV) transactions over $1 million increased 26% to 88. The company raised its full-year 2024 subscription revenue guidance following Q2 outperformance.
Leadership updates include the resignation of President and COO CJ Desai, with Chris Bedi stepping in as interim Chief Product Officer. ServiceNow also announced strategic AI partnerships and the launch of new AI-driven tools and capabilities.
ServiceNow ha riportato i risultati finanziari del secondo trimestre del 2024, superando le previsioni in tutte le metriche di crescita e redditività. I ricavi da abbonamento hanno raggiunto i 2.542 milioni di dollari, segnando una crescita del 23% rispetto all'anno precedente. I ricavi totali sono stati di 2.627 milioni di dollari, con un aumento del 22%. Le attuali obbligazioni di prestazione residue (cRPO) dell'azienda hanno toccato i 8,78 miliardi di dollari, in crescita del 22%, e l'RPO totale ha raggiunto i 18,6 miliardi di dollari, con un incremento del 31% anno su anno.
ServiceNow ha registrato una crescita del 15% nel numero di clienti con un valore contrattuale annuale superiore a 1 milione di dollari, raggiungendo ora un totale di 1.988. Le transazioni di nuovo valore contrattuale annuale netto (NNACV) superiori a 1 milione di dollari sono aumentate del 26%, raggiungendo 88. L'azienda ha innalzato le previsioni sui ricavi da abbonamento per l'intero anno 2024 dopo la performance positiva del secondo trimestre.
Le novità relative alla leadership includono le dimissioni del Presidente e COO CJ Desai, con Chris Bedi che assume il ruolo di Chief Product Officer ad interim. ServiceNow ha inoltre annunciato alleanze strategiche nel campo dell'IA e il lancio di nuovi strumenti e capacità guidati dall'IA.
ServiceNow informó los resultados financieros del segundo trimestre de 2024, superando las expectativas en todas las métricas de crecimiento y rentabilidad. Los ingresos por suscripción alcanzaron los 2,542 millones de dólares, marcando un crecimiento del 23% en comparación con el año anterior. Los ingresos totales fueron de 2,627 millones de dólares, un incremento del 22%. Las obligaciones de rendimiento actuales restantes (cRPO) de la empresa llegaron a 8.78 mil millones de dólares, un aumento del 22%, y el total de RPO alcanzó los 18.6 mil millones de dólares, con un incremento del 31% interanual.
ServiceNow experimentó un crecimiento del 15% en el número de clientes con más de 1 millón de dólares en valor de contrato anual, alcanzando un total de 1,988. Las transacciones de nuevo valor de contrato anual neto (NNACV) superiores a 1 millón de dólares aumentaron un 26%, totalizando 88. La empresa elevó su guía de ingresos por suscripción para el año completo 2024 después del desempeño destacado del segundo trimestre.
Las actualizaciones de liderazgo incluyen la renuncia del presidente y COO CJ Desai, con Chris Bedi asumiendo el cargo de Chief Product Officer interino. ServiceNow también anunció asociaciones estratégicas en inteligencia artificial y el lanzamiento de nuevas herramientas y capacidades impulsadas por IA.
ServiceNow는 2024년 2분기 재무 실적을 발표하며 모든 매출 성장 및 수익성 지표에서 가이던스를 초과했다고 보고했습니다. 구독 수익은 25억 4,200만 달러에 달하여 전년 대비 23% 성장했습니다. 총 수익은 26억 2,700만 달러로 22% 증가했습니다. 회사의 현재 남은 성과 의무(cRPO)는 87억 8천만 달러로 22% 증가했으며, 전체 RPO는 186억 달러에 달해 전년 대비 31% 상승했습니다.
ServiceNow는 연간 계약 가치가 100만 달러 이상인 고객 수가 15% 증가하여 현재 총 1,988명에 달한다고 보고했습니다. 100만 달러 이상의 신규 연간 계약 가치(Net New Annual Contract Value, NNACV) 거래는 26% 증가하여 88건에 도달했습니다. 이 회사는 2분기 호조 이후 2024년 전체 연간 구독 수익 가이던스를 상향 조정했습니다.
리더십 업데이트로는 CJ Desai 사장 겸 COO의 사퇴가 포함되며, Chris Bedi가 임시 Chief Product Officer로 취임합니다. ServiceNow는 또한 전략적 AI 파트너십과 새로운 AI 기반 도구 및 기능의 출시를 발표했습니다.
ServiceNow a publié ses résultats financiers du deuxième trimestre 2024, dépassant les prévisions sur toutes les métriques de croissance et de rentabilité. Les revenus d'abonnement ont atteint 2,542 milliards de dollars, marquant une hausse de 23% par rapport à l'année précédente. Les revenus totaux se sont élevés à 2,627 milliards de dollars, soit une augmentation de 22%. Les obligations de performance restantes de l'entreprise (cRPO) ont atteint 8,78 milliards de dollars, en progression de 22%, et le RPO total a atteint 18,6 milliards de dollars, en hausse de 31% sur un an.
ServiceNow a connu une croissance de 15% du nombre de clients ayant un montant de contrat annuel supérieur à 1 million de dollars, atteignant maintenant un total de 1 988 clients. Le nombre de nouvelles transactions de valeur de contrat annuel net (NNACV) supérieures à 1 million de dollars a augmenté de 26%, atteignant 88. L'entreprise a relevé ses prévisions de revenus d'abonnement pour l'ensemble de l'année 2024 après la performance exceptionnelle du deuxième trimestre.
Les mises à jour de la direction incluent la démission du président et COO CJ Desai, avec Chris Bedi prenant la relève en tant que Chief Product Officer par intérim. ServiceNow a également annoncé des partenariats stratégiques en IA et le lancement de nouveaux outils et capacités alimentés par l'IA.
ServiceNow hat die Finanzzahlen für das zweite Quartal 2024 veröffentlicht und alle Wachstums- und Rentabilitätsziele übertroffen. Die Abonnementeinnahmen erreichten 2.542 Millionen Dollar, was einem Anstieg von 23% im Vergleich zum Vorjahr entspricht. Die Gesamteinnahmen betrugen 2.627 Millionen Dollar, was einem Anstieg von 22% entspricht. Die verbleibenden Leistungsansprüche (cRPO) des Unternehmens beliefen sich auf 8,78 Milliarden Dollar, was einem Anstieg von 22% entspricht, und das gesamte RPO lag bei 18,6 Milliarden Dollar und stieg um 31% im Jahresvergleich.
ServiceNow erlebte ein Wachstum von 15% bei den Kunden mit einem jährlichen Vertragswert von über 1 Million Dollar, was nun insgesamt 1.988 beträgt. Die Zahl der neuen Transaktionen mit jährlichem Vertragswert (NNACV) von über 1 Million Dollar stieg um 26% auf 88. Das Unternehmen erhöhte seine Umsatzprognose für die Abonnements für das gesamte Jahr 2024 nach dem überdurchschnittlichen Ergebnis des zweiten Quartals.
Updates zur Führung beinhalten den Rücktritt von Präsident und COO CJ Desai, wobei Chris Bedi als interimistischer Chief Product Officer einspringt. ServiceNow kündigte auch strategische KI-Partnerschaften und die Einführung neuer KI-gestützter Tools und Funktionen an.
- Subscription revenues grew 23% YoY to $2,542 million.
- Total revenues increased 22% YoY to $2,627 million.
- Current remaining performance obligations (cRPO) grew 22% YoY to $8.78 billion.
- Remaining performance obligations (RPO) increased 31% YoY to $18.6 billion.
- Raised full-year 2024 subscription revenue guidance.
- 1,988 customers with over $1 million in annual contract value, up 15% YoY.
- 88 transactions over $1 million in net new ACV, up 26% YoY.
- Leadership transition with resignation of President and COO CJ Desai due to policy violation.
ServiceNow's Q2 2024 results demonstrate robust growth and profitability, exceeding guidance across key metrics. The company reported:
- Subscription revenues of
$2,542 million , up23% year-over-year - Total revenues of
$2,627 million , a22% increase - Current remaining performance obligations (cRPO) of
$8.78 billion , growing22% - 88 transactions over
$1 million in net new ACV, up26%
These results underscore ServiceNow's strong market position and execution in the AI-driven business transformation space. The company's focus on generative AI, evidenced by the doubling of NNACV for Now Assist quarter-over-quarter, is paying off. The raised guidance for 2024 subscription revenues and operating margin reflects management's confidence in sustained growth.
However, investors should note the leadership changes, including the departure of CJ Desai as President and COO, which could potentially impact short-term execution. The appointment of Chris Bedi as interim Chief Product Officer aims to ensure continuity.
From a financial perspective, ServiceNow's non-GAAP operating margin of
Looking ahead, ServiceNow's Q3 2024 guidance of
ServiceNow's Q2 results highlight its strong position in the enterprise AI market. The company's focus on 'Putting AI to Work for People' is resonating with customers, as evidenced by the
Key technological advancements include:
- Introduction of a bring your own (BYO) GenAI model, offering greater flexibility to customers
- Launch of cross-platform GenAI capabilities like Now Assist for Strategic Portfolio Management and Creator Studio
- RaptorDB Lighthouse program to help customers ingest and analyze data at scale for AI use cases
- Acquisition of Raytion to enhance GenAI-powered search and knowledge management capabilities
ServiceNow's strategic partnerships with tech giants like Microsoft, IBM and Nvidia further strengthen its AI ecosystem. The integration of Now Assist with Microsoft's Copilot and IBM's watsonx platform positions ServiceNow at the forefront of enterprise AI adoption.
The company's global expansion, including plans for a UAE Cloud and investment in inMorphis, demonstrates its commitment to capturing international market share. ServiceNow's entry into the Fortune 500 list and recognition in various industry rankings reinforce its growing influence in the tech sector.
However, the tech industry is highly competitive and ServiceNow will need to continue innovating to maintain its leadership position. The company's ability to execute on its AI strategy and deliver tangible value to customers will be important for long-term success.
- ServiceNow exceeds guidance across all Q2 2024 topline growth and profitability metrics; raises 2024 subscription revenues and operating margin guidance
-
Subscription revenues of
in Q2 2024, representing$2,542 million 23% year-over-year growth,23% in constant currency -
Total revenues of
in Q2 2024, representing$2,627 million 22% year-over-year growth,22.5% in constant currency -
Current remaining performance obligations of
as of Q2 2024, representing$8.78 billion 22% year-over-year growth,22.5% in constant currency -
Remaining performance obligations of
as of Q2 2024, representing$18.6 billion 31% year-over-year growth,31.5% in constant currency -
88 transactions over
in net new ACV in Q2 2024, up$1 million 26% year-over-year - Board of Directors shares update on leadership transition; CJ Desai, President and Chief Operating Officer, departs company; Chris Bedi announced as interim Chief Product Officer
“ServiceNow’s elite-level execution is reflected in our continued outperformance across all topline growth and profitability metrics,” said ServiceNow Chairman and CEO Bill McDermott. “Our relevance as the AI platform for business transformation remains stronger than ever as CEOs are looking for new vectors of growth, simplification, and digitization. ServiceNow intends to reinvent every workflow, in every company, in every industry with GenAI at the core.”
As of June 30, 2024, current remaining performance obligations (“cRPO”), contract revenue that will be recognized as revenue in the next 12 months, was
“Q2 was another fantastic quarter with NNACV and GenAI contributions exceeding expectations,” said ServiceNow CFO Gina Mastantuono. “Our Knowledge event in May centered on 'Putting AI to Work for People' and received an incredible response from customers, generating more than
Recent Business Highlights
Innovation
-
Generative AI is a generational secular tailwind. NNACV for Now Assist, ServiceNow’s GenAI experience, doubled quarter over quarter and significantly overachieved expectations, including 11 deals greater than
in Q2.$1 million -
ServiceNow’s Knowledge event in May brought together over 20,000 customers and partners, and newly created pipeline after only 60 days was up over
50% year-over-year. During the event, ServiceNow introduced innovations designed to power AI-driven transformation for enterprises, including a new bring your own (BYO) GenAI model – which offers greater flexibility and choice to customers – and new cross-platform GenAI capabilities such as Now Assist for Strategic Portfolio Management, Now Assist for Government Community Cloud (GCC), Creator Studio, Manufacturing Commercial Operations, and Talent Development. -
Today ServiceNow launched its RaptorDB Lighthouse program, building on the powerful, new RaptorDB database offering announced in May, to help customers quickly ingest and analyze data at massive scale as they pursue new AI use cases. To further enhance the company’s GenAI-powered search and knowledge management capabilities, ServiceNow also today announced that it acquired Raytion, a
Germany -based industry leader in information retrieval technology.
Partnerships
- Also at its Knowledge conference, ServiceNow expanded on its strategic AI partnerships. ServiceNow and Microsoft announced a Now Assist and Copilot integration for a seamless enterprise experience; ServiceNow and IBM introduced a Now Platform and IBM watsonx integration to help customers accelerate workflow productivity; and ServiceNow and Nvidia showcased together onstage the potential of AI avatars for employee and customer service. Additional technology partnerships announced include Genesys, Fujitsu, Equinix, and Infosys.
- Today ServiceNow and Boomi announced a strategic commitment to elevate customer experiences through AI-powered self-service, leveraging ServiceNow solutions. ServiceNow will also bring Boomi’s APIM solution to its customers to help deepen ServiceNow’s suite of intelligent automation solutions.
Global and Industry Expansion
-
ServiceNow continues to invest in its global customer base and future growth, announcing plans for a
UAE Cloud, hosted on Microsoft Azure, with targeted delivery in the first half of 2025, and a strategic investment in inMorphis, a global IT company and leading pure-play ServiceNow partner, to extend ServiceNow’s presence inIndia and the ASEAN region. - ServiceNow furthered its industry leadership, making its first telecommunications-focused Ecosystem Ventures investment in leading industry services partner Prodapt to accelerate business transformation with AI-enabled solutions, go-to-market capabilities, and Now Platform skills expansion. Also in the space, ServiceNow and BT Group announced a multi-year agreement to transform the customer experience at BT Group, and recently, ServiceNow and Bell Canada announced an industry-first collaboration to expand Bell’s use of the Now Platform in its digital transformation to meet the growing demand for tech services and digital media.
Recognition
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As a testament to ServiceNow’s market outperformance, ServiceNow earned a spot on the Fortune 500 list1 for the second year in a row. The company was also named to the Kantar BrandZ Top 100 Most Valuable Global Brands list for 2024; Great Place to Work Best Workplaces in Technology GCC,
Australia , andIreland ; Glassdoor’s Best-Led Companies 2024; and LinkedIn Top Companies inAustralia ,Ireland , andthe Netherlands . - ServiceNow announced during the quarter that it was named a Leader in The Forrester Wave™: Strategic Portfolio Management Tools, Q2 2024, and also that it was named a Leader in The Forrester Wave™: P&C Claims Management Systems, Q2 2024. Additionally, ServiceNow announced that it was named a Leader in the IDC MarketScape: Worldwide Multicloud and Hybrid Cloud Management with Automation, 2024 Vendor Assessment.
(1) |
©2024 Fortune Media IP Limited All rights reserved. Used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, ServiceNow. |
Leadership Update
As previously referenced in the Company’s Form 10-Q for the quarter ended March 31, 2024, the Company received an internal complaint that raised a potential concern related to one of its employees.
The Company initiated an internal investigation, with assistance of outside legal counsel, into the validity of these claims. The Company also promptly informed and is continuing to cooperate with government entities.
As a result of the investigation, the Company’s Board of Directors determined Company policy was violated regarding the hiring of the former Chief Information Officer of the
The Company has appointed ServiceNow veteran Chris Bedi, as interim Chief Product Officer, effective immediately. Bedi has been at ServiceNow for nearly a decade with roles including Chief Digital Information Officer and Chief Customer Officer.
Second Quarter 2024 GAAP and Non-GAAP Results:
The following table summarizes our financial results for the second quarter 2024:
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Second Quarter 2024 GAAP Results |
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Second Quarter 2024 Non-GAAP Results(1) |
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Amount ($ millions) |
Year/Year Growth (%) |
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Amount ($ millions)(3) |
Year/Year Growth (%) |
Subscription revenues |
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Professional services and other revenues |
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Total revenues |
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Amount ($ billions) |
Year/Year Growth (%) |
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Amount
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Year/Year Growth (%) |
cRPO |
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RPO |
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Amount ($ millions) |
Margin (%) |
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Amount ($ millions)(2) |
Margin (%)(2) |
Subscription gross profit |
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Professional services and other gross profit |
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Total gross profit |
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Income from operations |
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Net cash provided by operating activities |
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Free cash flow |
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Amount ($ millions) |
Earnings per Basic/Diluted Share ($) |
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Amount ($ millions)(2) |
Earnings per Basic/Diluted Share ($)(2) |
Net income |
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(1) |
We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP measures. |
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(2) |
Refer to the table entitled “GAAP to Non-GAAP Reconciliation” for a reconciliation of GAAP to non-GAAP measures. |
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(3) |
Non-GAAP subscription revenues and total revenues are adjusted for constant currency by excluding effects of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts. Professional services and other revenues, cRPO, and RPO are adjusted only for constant currency. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP measures. |
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Note: Numbers rounded for presentation purposes and may not foot. |
Financial Outlook
Our guidance includes GAAP and non-GAAP financial measures. The non-GAAP growth rates for subscription revenues are adjusted for constant currency by excluding effects of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts, and cRPO are adjusted only for constant currency to provide better visibility into the underlying business trends. Since March 31, 2024, ServiceNow has seen a strengthening of the
The following table summarizes our guidance for the third quarter 2024:
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Third Quarter 2024 GAAP Guidance |
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Third Quarter 2024 Non-GAAP Guidance(1) |
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Amount
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Year/Year Growth (%)(3) |
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Constant Currency Year/Year Growth (%) |
Subscription revenues |
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cRPO |
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Margin (%)(2) |
Income from operations |
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Amount (millions) |
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Weighted-average shares used to compute diluted net income per share |
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209 |
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(1) |
We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP measures. |
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(2) |
Refer to the table entitled “Reconciliation of Non-GAAP Financial Guidance” for a reconciliation of GAAP to non-GAAP measures. |
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(3) |
Guidance for GAAP subscription revenues and GAAP subscription revenues and cRPO growth rates are based on the 30-day average of foreign exchange rates for June 2024 for entities reporting in currencies other than |
The following table summarizes our guidance for the full-year 2024:
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Full-Year 2024 GAAP Guidance |
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Full-Year 2024 Non-GAAP Guidance(1) |
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Amount
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Year/Year Growth (%)(3) |
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Constant Currency Year/Year Growth (%) |
Subscription revenues |
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Margin (%)(2) |
Subscription gross profit |
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Income from operations |
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Free cash flow |
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Amount (millions) |
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Weighted-average shares used to compute diluted net income per share |
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208 |
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(1) |
We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP measures. |
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(2) |
Refer to the table entitled “Reconciliation of Non-GAAP Financial Guidance” for a reconciliation of GAAP to non-GAAP measures. |
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(3) |
GAAP subscription revenues and related growth rate for the future quarter included in our full-year 2024 guidance are based on the 30-day average of foreign exchange rates for June 2024 for entities reporting in currencies other than |
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Note: Numbers are rounded for presentation purposes and may not foot. |
Conference Call Details
The conference call will begin at 2 p.m. Pacific Time (“PT”) (21:00 GMT) on July 24, 2024. Interested parties may listen to the call by dialing (888) 330‑2455 (Passcode: 8135305), or if outside
https://events.q4inc.com/attendee/627663058
An audio replay of the conference call and webcast will be available two hours after its completion and will be accessible for 30 days. To hear the replay, interested parties may go to the investor relations section of the ServiceNow website or dial (800) 770‑2030 (Passcode: 8135305), or if outside
Investor Presentation Details
An investor presentation providing additional information, including forward-looking guidance, and analysis can be found at https://investors.servicenow.com.
Upcoming Investor Conferences
ServiceNow today announced that it will attend and have executives present at three upcoming investor conferences.
These include:
- ServiceNow Chief Financial Officer Gina Mastantuono will participate in a fireside chat at the Deutsche Bank 2024 Technology Conference on Thursday, August 29, 2024.
- ServiceNow Chief Financial Officer Gina Mastantuono will participate in a fireside chat at the Citi 2024 Global TMT Conference on Thursday, September 5, 2024.
- ServiceNow Chairman and Chief Executive Officer Bill McDermott will participate in a keynote presentation at the Goldman Sachs Communacopia and Technology Conference on Wednesday, September 11, 2024.
The live webcast will be accessible on the investor relations section of the ServiceNow website at https://investors.servicenow.com and archived on the ServiceNow site for a period of 30 days.
Statement Regarding Use of Non-GAAP Financial Measures
We use the following non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
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Revenues. We adjust revenues and related growth rates for constant currency to provide a framework for assessing how our business performed excluding the effect of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts that are reported in the current and comparative period. To exclude the effect of foreign currency rate fluctuations, current period results for entities reporting in currencies other than
U.S. Dollars (“USD”) are converted into USD at the average exchange rates in effect during the comparison period (for Q2 2023, the average exchange rates in effect for our major currencies were1 USD to0.92 Euros and1 USD to0.80 British Pound Sterling (“GBP”)), rather than the actual average exchange rates in effect during the current period (for Q2 2024, the average exchange rates in effect for our major currencies were1 USD to0.93 Euros and1 USD to0.79 GBP ). Guidance for related growth rates is derived by applying the average exchange rates in effect during the comparison period, rather than the exchange rates for the guidance period, adjusted for any foreign currency hedging effects. We believe the presentation of revenues and related growth rates adjusted for constant currency facilitates the comparison of revenues year-over-year.
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Remaining performance obligations and current remaining performance obligations. We adjust cRPO and remaining performance obligations (“RPO”) and related growth rates for constant currency to provide a framework for assessing how our business performed. To present this information, current period results for entities reporting in currencies other than USD are converted into USD at the exchange rates in effect at the end of the comparison period (for Q2 2023, the end of the period exchange rates in effect for our major currencies were
1 USD to0.92 Euros and1 USD to0.79 GBP ), rather than the actual end of the period exchange rates in effect during the current period (for Q2 2024, the end of the period exchange rates in effect for our major currencies were1 USD to0.93 Euros and1 USD to0.79 GBP ). Guidance for the related growth rate is derived by applying the end of period exchange rates in effect during the comparison period rather than the exchange rates in effect during the guidance period. We believe the presentation of cRPO and RPO and related growth rates adjusted for constant currency facilitates the comparison of cRPO and RPO year-over-year, respectively.
- Gross profit, Income from operations, Net income and Net income per share - diluted. Our non-GAAP presentation of gross profit, income from operations, and net income measures exclude certain non-cash or non-recurring items, including stock-based compensation expense, amortization of debt discount and issuance costs related to our convertible senior notes, loss on early note conversions, amortization of purchased intangibles, legal settlements, business combination and other related costs, income tax effects and adjustments, and the income tax benefit from the release of a valuation allowance on deferred tax assets. The non-GAAP weighted-average shares used to compute our non-GAAP net income per share - diluted excludes the dilutive effect of the in-the-money portion of convertible senior notes as they are covered by our note hedges, and includes the dilutive effect of time-based stock awards, the dilutive effect of warrants and the potentially dilutive effect of our stock awards with performance conditions not yet satisfied at forecasted attainment levels to the extent we believe it is probable that the performance condition will be met. We believe these adjustments provide useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods.
- Free cash flow. Free cash flow is defined as net cash provided by operating activities plus cash outflows for legal settlements, repayments of convertible senior notes attributable to debt discount and business combination and other related costs including compensation expense, reduced by purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of total revenues. We believe information regarding free cash flow and free cash flow margin provides useful information to investors because it is an indicator of the strength and performance of our business operations.
Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP and non-GAAP results for gross profit, income from operations, net income, net income per share, and free cash flow.
Use of Forward-Looking Statements
This release contains “forward-looking statements” regarding our performance, including but not limited to statements in the section entitled “Financial Outlook.” Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.
Factors that may cause actual results to differ materially from those in any forward-looking statements include, among others, experiencing an actual or perceived cyber-security event or weakness; our ability to comply with evolving privacy laws, data transfer restrictions, and other foreign and domestic standards related to data and the Internet; errors, interruptions, delays or security breaches in or of our service or data centers; our ability to maintain and attract key employees and manage workplace culture; alleged violations of laws and regulations, including those relating to anti-bribery and anti-corruption and those relating to public sector contracting requirements; our ability to compete successfully against existing and new competitors; our ability to predict, prepare for and respond promptly to rapidly evolving technological, market and customer developments; our ability to grow our business, including converting remaining performance obligations into revenue, adding and retaining customers, selling additional subscriptions to existing customers, selling to larger enterprises, government and regulated organizations with complex sales cycles and certification processes, and entering new geographies and markets; our ability to develop and gain customer demand for and acceptance of existing, new and improved products and services; our ability to expand and maintain our partnerships and partner programs, including expected market opportunity from such relationships; global economic conditions; fluctuations in the value of foreign currencies relative to the
Further information on these and other factors that could affect our financial results are included in our Form 10-K for the year ended December 31, 2023, and in other filings we make with the Securities and Exchange Commission from time to time.
We undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.
About ServiceNow
ServiceNow (NYSE: NOW) is putting AI to work for people. We move with the pace of innovation to help customers transform organizations across every industry while upholding a trustworthy, human centered approach to deploying our products and services at scale. Our AI platform for business transformation connects people, processes, data, and devices to increase productivity and maximize business outcomes. For more information, visit: www.servicenow.com.
© 2024 ServiceNow, Inc. All rights reserved. ServiceNow, the ServiceNow logo, Now, and other ServiceNow marks are trademarks and/or registered trademarks of ServiceNow, Inc. in
ServiceNow, Inc. |
|||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||
(in millions, except per share data) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Subscription |
$ |
2,542 |
|
|
$ |
2,075 |
|
|
$ |
5,065 |
|
|
$ |
4,099 |
|
Professional services and other |
|
85 |
|
|
|
75 |
|
|
|
165 |
|
|
|
147 |
|
Total revenues |
|
2,627 |
|
|
|
2,150 |
|
|
|
5,230 |
|
|
4,246 |
|
|
Cost of revenues (1): |
|
|
|
|
|
|
|
||||||||
Subscription |
|
469 |
|
|
|
389 |
|
|
|
910 |
|
|
|
743 |
|
Professional services and other |
|
83 |
|
|
|
82 |
|
|
|
162 |
|
|
|
166 |
|
Total cost of revenues |
|
552 |
|
|
|
471 |
|
|
|
1,072 |
|
|
|
909 |
|
Gross profit |
|
2,075 |
|
|
|
1,679 |
|
|
|
4,158 |
|
|
|
3,337 |
|
Operating expenses (1): |
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
960 |
|
|
|
832 |
|
|
|
1,883 |
|
|
|
1,655 |
|
Research and development |
|
643 |
|
|
|
521 |
|
|
|
1,249 |
|
|
|
1,013 |
|
General and administrative |
|
232 |
|
|
|
209 |
|
|
|
454 |
|
|
|
408 |
|
Total operating expenses |
|
1,835 |
|
|
|
1,562 |
|
|
|
3,586 |
|
|
|
3,076 |
|
Income from operations |
|
240 |
|
|
|
117 |
|
|
|
572 |
|
|
|
261 |
|
Interest income |
|
104 |
|
|
|
74 |
|
|
|
205 |
|
|
|
134 |
|
Other expense, net |
|
(10 |
) |
|
|
(17 |
) |
|
|
(18 |
) |
|
|
(33 |
) |
Income before income taxes |
|
334 |
|
|
|
174 |
|
|
|
759 |
|
|
|
362 |
|
Provision for (benefit from) income taxes |
|
72 |
|
|
|
(870 |
) |
|
|
150 |
|
|
|
(832 |
) |
Net income |
$ |
262 |
|
|
$ |
1,044 |
|
|
$ |
609 |
|
|
$ |
1,194 |
|
Net income per share - basic |
$ |
1.27 |
|
|
$ |
5.12 |
|
|
$ |
2.97 |
|
|
$ |
5.86 |
|
Net income per share - diluted |
$ |
1.26 |
|
|
$ |
5.08 |
|
|
$ |
2.93 |
|
|
$ |
5.83 |
|
Weighted-average shares used to compute net income per share - basic |
|
206 |
|
|
|
204 |
|
|
|
205 |
|
|
|
204 |
|
Weighted-average shares used to compute net income per share - diluted |
|
208 |
|
|
|
205 |
|
|
|
208 |
|
|
|
205 |
|
(1) Includes stock-based compensation as follows: |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
Cost of revenues: |
|
|
|
|
|
|
|
||||||||
Subscription |
$ |
62 |
|
$ |
50 |
|
$ |
120 |
|
$ |
96 |
||||
Professional services and other |
|
12 |
|
|
|
15 |
|
|
|
24 |
|
|
|
29 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
141 |
|
|
|
120 |
|
|
|
275 |
|
|
|
246 |
|
Research and development |
|
170 |
|
|
|
145 |
|
|
|
329 |
|
|
|
280 |
|
General and administrative |
|
59 |
|
|
|
67 |
|
|
|
118 |
|
|
|
127 |
|
ServiceNow, Inc. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(in millions) |
|||||||
|
June 30, 2024 |
|
December 31, 2023 |
||||
|
(unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
2,159 |
|
$ |
1,897 |
||
Short-term investments |
|
3,254 |
|
|
|
2,980 |
|
Accounts receivable, net |
|
1,518 |
|
|
|
2,036 |
|
Current portion of deferred commissions |
|
482 |
|
|
|
461 |
|
Prepaid expenses and other current assets |
|
608 |
|
|
|
403 |
|
Total current assets |
|
8,021 |
|
|
|
7,777 |
|
Deferred commissions, less current portion |
|
928 |
|
|
|
919 |
|
Long-term investments |
|
3,472 |
|
|
|
3,203 |
|
Property and equipment, net |
|
1,606 |
|
|
|
1,358 |
|
Operating lease right-of-use assets |
|
675 |
|
|
|
715 |
|
Intangible assets, net |
|
220 |
|
|
|
224 |
|
Goodwill |
|
1,239 |
|
|
|
1,231 |
|
Deferred tax assets |
|
1,447 |
|
|
|
1,508 |
|
Other assets |
|
599 |
|
|
|
452 |
|
Total assets |
$ |
18,207 |
|
|
$ |
17,387 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
296 |
|
|
$ |
126 |
|
Accrued expenses and other current liabilities |
|
1,163 |
|
|
|
1,365 |
|
Current portion of deferred revenue |
|
5,615 |
|
|
|
5,785 |
|
Current portion of operating lease liabilities |
|
98 |
|
|
|
89 |
|
Total current liabilities |
|
7,172 |
|
|
|
7,365 |
|
Deferred revenue, less current portion |
|
85 |
|
|
|
81 |
|
Operating lease liabilities, less current portion |
|
669 |
|
|
|
707 |
|
Long-term debt, net |
|
1,488 |
|
|
|
1,488 |
|
Other long-term liabilities |
|
127 |
|
|
|
118 |
|
Stockholders’ equity |
|
8,666 |
|
|
|
7,628 |
|
Total liabilities and stockholders’ equity |
$ |
18,207 |
|
|
$ |
17,387 |
|
ServiceNow, Inc. |
|||||||||||||||
Condensed Consolidated Statements of Cash Flows |
|||||||||||||||
(in millions) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
262 |
|
|
$ |
1,044 |
|
|
$ |
609 |
|
|
$ |
1,194 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
136 |
|
|
|
136 |
|
|
|
266 |
|
|
|
262 |
|
Amortization of deferred commissions |
|
132 |
|
|
|
112 |
|
|
|
263 |
|
|
|
218 |
|
Stock-based compensation |
|
444 |
|
|
|
397 |
|
|
|
866 |
|
|
|
778 |
|
Deferred income taxes |
|
24 |
|
|
|
(911 |
) |
|
|
52 |
|
|
|
(904 |
) |
Other |
|
(7 |
) |
|
|
(3 |
) |
|
|
(25 |
) |
|
|
(2 |
) |
Changes in operating assets and liabilities, net of effect of business combinations: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
(216 |
) |
|
|
16 |
|
|
|
499 |
|
|
|
635 |
|
Deferred commissions |
|
(141 |
) |
|
|
(121 |
) |
|
|
(306 |
) |
|
|
(280 |
) |
Prepaid expenses and other assets |
|
(146 |
) |
|
|
(72 |
) |
|
|
(252 |
) |
|
|
(136 |
) |
Accounts payable |
|
65 |
|
|
|
(44 |
) |
|
|
172 |
|
|
|
(90 |
) |
Deferred revenue |
|
(82 |
) |
|
|
(129 |
) |
|
|
(92 |
) |
|
|
(89 |
) |
Accrued expenses and other liabilities |
|
149 |
|
|
|
155 |
|
|
|
(91 |
) |
|
|
(104 |
) |
Net cash provided by operating activities |
620 |
|
|
580 |
|
|
|
1,961 |
|
|
|
1,482 |
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
Purchases of property and equipment |
|
(262 |
) |
|
|
(132 |
) |
|
|
(397 |
) |
|
|
(297 |
) |
Business combinations, net of cash acquired(1) |
|
(31 |
) |
|
|
— |
|
|
|
(41 |
) |
|
|
— |
|
Purchases of other intangibles |
|
(9 |
) |
|
|
— |
|
|
|
(30 |
) |
|
|
— |
|
Purchases of investments |
|
(1,055 |
) |
|
|
(1,599 |
) |
|
|
(2,660 |
) |
|
|
(2,821 |
) |
Purchases of non-marketable investments |
|
(46 |
) |
|
|
(16 |
) |
|
|
(88 |
) |
|
|
(46 |
) |
Sales and maturities of investments |
|
1,040 |
|
|
|
1,073 |
|
|
|
2,113 |
|
|
|
1,953 |
|
Other |
|
(8 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
13 |
|
Net cash used in investing activities |
|
(371 |
) |
|
|
(674 |
) |
|
|
(1,105 |
) |
|
|
(1,198 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
Proceeds from employee stock plans |
|
— |
|
|
|
— |
|
|
|
131 |
|
|
|
117 |
|
Repurchases of common stock |
|
— |
|
|
|
— |
|
|
|
(175 |
) |
|
|
— |
|
Taxes paid related to net share settlement of equity awards |
|
(137 |
) |
|
|
(94 |
) |
|
|
(352 |
) |
|
|
(206 |
) |
Business combination (1) |
— |
|
— |
|
|
(184 |
) |
|
— |
||||||
Net cash used in financing activities |
|
(137 |
) |
|
|
(94 |
) |
|
|
(580 |
) |
|
|
(89 |
) |
Foreign currency effect on cash, cash equivalents and restricted cash |
|
(9 |
) |
|
|
(1 |
) |
|
|
(13 |
) |
|
|
— |
|
Net change in cash, cash equivalents and restricted cash |
|
103 |
|
|
|
(189 |
) |
|
|
263 |
|
|
|
195 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
2,064 |
|
|
|
1,859 |
|
|
|
1,904 |
|
|
|
1,475 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
2,167 |
|
|
$ |
1,670 |
|
|
$ |
2,167 |
|
|
$ |
1,670 |
|
(1) |
The six-months period ended June 30, 2024 reflects a reclassification of |
ServiceNow, Inc. |
|||||||||||||||
GAAP to Non-GAAP Reconciliation |
|||||||||||||||
(in millions, except per share data) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit: |
|
|
|
|
|
|
|
||||||||
GAAP subscription gross profit |
$ |
2,073 |
|
|
$ |
1,686 |
|
|
$ |
4,155 |
|
|
$ |
3,356 |
|
Stock-based compensation |
|
62 |
|
|
|
50 |
|
|
|
120 |
|
|
|
96 |
|
Amortization of purchased intangibles |
|
21 |
|
|
|
19 |
|
|
|
42 |
|
|
|
37 |
|
Non-GAAP subscription gross profit |
$ |
2,156 |
|
|
$ |
1,755 |
|
|
$ |
4,317 |
|
|
$ |
3,489 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP professional services and other gross profit (loss) |
$ |
2 |
|
|
$ |
(7 |
) |
|
$ |
3 |
|
|
$ |
(19 |
) |
Stock-based compensation |
|
12 |
|
|
|
15 |
|
|
|
24 |
|
|
|
29 |
|
Non-GAAP professional services and other gross profit |
$ |
14 |
|
|
$ |
8 |
|
|
$ |
27 |
|
|
$ |
10 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP gross profit |
$ |
2,075 |
|
|
$ |
1,679 |
|
|
$ |
4,158 |
|
|
$ |
3,337 |
|
Stock-based compensation |
|
74 |
|
|
|
65 |
|
|
|
144 |
|
|
|
125 |
|
Amortization of purchased intangibles |
|
21 |
|
|
|
19 |
|
|
|
42 |
|
|
|
37 |
|
Non-GAAP gross profit |
$ |
2,170 |
|
|
$ |
1,763 |
|
|
$ |
4,344 |
|
|
$ |
3,499 |
|
|
|
|
|
|
|
|
|
||||||||
Gross margin: |
|
|
|
|
|
|
|
||||||||
GAAP subscription gross margin |
|
82 |
% |
|
|
81 |
% |
|
|
82 |
% |
|
|
82 |
% |
Stock-based compensation as % of subscription revenues |
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
Amortization of purchased intangibles as % of subscription revenues |
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
Non-GAAP subscription gross margin |
|
85 |
% |
|
|
85 |
% |
|
|
85 |
% |
|
|
85 |
% |
|
|
|
|
|
|
|
|
||||||||
GAAP professional services and other gross margin |
|
2 |
% |
|
|
(9 |
%) |
|
|
2 |
% |
|
|
(13 |
%) |
Stock-based compensation as % of professional services and other revenues |
|
14 |
% |
|
|
20 |
% |
|
|
15 |
% |
|
|
20 |
% |
Non-GAAP professional services and other gross margin |
|
16 |
% |
|
|
11 |
% |
|
|
16 |
% |
|
|
7 |
% |
|
|
|
|
|
|
||||||||||
GAAP gross margin |
|
79 |
% |
|
|
78 |
% |
|
|
80 |
% |
|
|
79 |
% |
Stock-based compensation as % of total revenues |
|
3 |
% |
|
|
3 |
% |
|
|
3 |
% |
|
|
3 |
% |
Amortization of purchased intangibles as % of total revenues |
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
Non-GAAP gross margin |
|
83 |
% |
|
|
82 |
% |
|
|
83 |
% |
|
|
82 |
% |
|
|
|
|
|
|
|
|
||||||||
Income from operations: |
|
|
|
|
|
|
|
||||||||
GAAP income from operations |
$ |
240 |
|
|
$ |
117 |
|
|
$ |
572 |
|
|
$ |
261 |
|
Stock-based compensation |
|
444 |
|
|
|
397 |
|
|
|
866 |
|
|
|
778 |
|
Amortization of purchased intangibles |
|
24 |
|
|
|
22 |
|
|
|
48 |
|
|
|
42 |
|
Business combination and other related costs |
|
12 |
|
|
|
8 |
|
|
|
25 |
|
|
|
15 |
|
Non-GAAP income from operations |
$ |
720 |
|
|
$ |
544 |
|
|
$ |
1,511 |
|
|
$ |
1,096 |
|
|
|
|
|
|
|
|
|
||||||||
Operating margin: |
|
|
|
|
|
|
|
||||||||
GAAP operating margin |
|
9 |
% |
|
|
5 |
% |
|
|
11 |
% |
|
|
6 |
% |
Stock-based compensation as % of total revenues |
|
17 |
% |
|
|
18 |
% |
|
|
17 |
% |
|
|
18 |
% |
Amortization of purchased intangibles as % of total revenues |
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
Business combination and other related costs as % of total revenues |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
Non-GAAP operating margin |
|
27 |
% |
|
|
25 |
% |
|
|
29 |
% |
|
|
26 |
% |
|
|
|
|
|
|
|
|
||||||||
Net income: |
|
|
|
|
|
|
|
||||||||
GAAP net income |
$ |
262 |
|
|
$ |
1,044 |
|
|
$ |
609 |
|
|
$ |
1,194 |
|
Stock-based compensation |
|
444 |
|
|
|
397 |
|
|
|
866 |
|
|
|
778 |
|
Amortization of purchased intangibles |
|
24 |
|
|
|
22 |
|
|
|
48 |
|
|
|
42 |
|
Business combination and other related costs |
|
12 |
|
|
|
8 |
|
|
|
25 |
|
|
|
15 |
|
Income tax effects and adjustments(1) |
|
(91 |
) |
|
|
(75 |
) |
|
|
(190 |
) |
|
|
(150 |
) |
Discrete income tax benefit from the release of a valuation allowance on deferred tax assets(2) |
|
— |
|
|
|
(910 |
) |
|
|
— |
|
|
|
(910 |
) |
Non-GAAP net income |
$ |
651 |
|
|
$ |
486 |
|
|
$ |
1,358 |
|
|
$ |
969 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share - basic and diluted: |
|
|
|
|
|
|
|
||||||||
GAAP net income per share - basic |
$ |
1.27 |
|
|
$ |
5.12 |
|
|
$ |
2.97 |
|
|
$ |
5.86 |
|
GAAP net income per share - diluted |
$ |
1.26 |
|
|
$ |
5.08 |
|
|
$ |
2.93 |
|
|
$ |
5.83 |
|
Non-GAAP net income per share - basic |
$ |
3.16 |
|
|
$ |
2.38 |
|
|
$ |
6.61 |
|
|
$ |
4.76 |
|
Non-GAAP net income per share - diluted |
$ |
3.13 |
|
|
$ |
2.37 |
|
|
$ |
6.54 |
|
|
$ |
4.73 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares used to compute net income per share - basic |
|
206 |
|
|
|
204 |
|
|
|
205 |
|
|
|
204 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares used to compute net income per share - diluted |
|
208 |
|
|
|
205 |
|
|
|
208 |
|
|
|
205 |
|
|
|
|
|
|
|
|
|
||||||||
Free cash flow: |
|
|
|
|
|
|
|
||||||||
GAAP net cash provided by operating activities |
$ |
620 |
|
|
$ |
580 |
|
|
$ |
1,961 |
|
|
$ |
1,482 |
|
Purchases of property and equipment |
|
(262 |
) |
|
|
(132 |
) |
|
|
(397 |
) |
|
|
(297 |
) |
Business combination and other related costs |
|
1 |
|
|
|
3 |
|
|
|
20 |
|
|
|
3 |
|
Non-GAAP free cash flow |
$ |
359 |
|
|
$ |
451 |
|
|
$ |
1,584 |
|
|
$ |
1,188 |
|
|
|
|
|
|
|
|
|
||||||||
Free cash flow margin: |
|
|
|
|
|
|
|
||||||||
GAAP net cash provided by operating activities as % of total revenues |
|
24 |
% |
|
|
27 |
% |
|
|
38 |
% |
|
|
35 |
% |
Purchases of property and equipment as % of total revenues |
|
(10 |
%) |
|
|
(6 |
%) |
|
|
(8 |
%) |
|
|
(7 |
%) |
Business combination and other related costs as % of total revenues |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
Non-GAAP free cash flow margin |
|
14 |
% |
|
|
21 |
% |
|
|
30 |
% |
|
|
28 |
% |
(1) |
We use a non-GAAP effective tax rate for evaluating our operating results to provide consistency across reporting periods. Based on our long-term projections, we are using a non-GAAP tax rate of |
|
(2) |
GAAP net income for the three and six months ended June 30, 2023 was impacted by a |
|
Note: Numbers are rounded for presentation purposes and may not foot. |
ServiceNow, Inc. |
||
Reconciliation of Non-GAAP Financial Guidance |
||
|
Three Months Ending |
|
|
September 30, 2024 |
|
|
|
|
|
|
|
GAAP operating margin |
12 |
% |
|
|
|
Stock-based compensation expense as % of total revenues |
16 |
% |
|
|
|
Amortization of purchased intangibles as % of total revenues |
1 |
% |
|
|
|
Business combination and other related costs as % of total revenues |
— |
% |
|
||
Non-GAAP operating margin |
29.5 |
% |
|
Twelve Months Ending |
|
|
December 31, 2024 |
|
|
|
|
|
|
|
GAAP subscription gross margin |
81.5 |
% |
|
|
|
Stock-based compensation expense as % of subscription revenues |
2 |
% |
|
|
|
Amortization of purchased intangibles as % of subscription revenues |
1 |
% |
|
|
|
Non-GAAP subscription margin |
84.5 |
% |
|
|
|
GAAP operating margin |
12 |
% |
|
|
|
Stock-based compensation expense as % of total revenues |
16 |
% |
|
|
|
Amortization of purchased intangibles as % of total revenues |
1 |
% |
|
|
|
Business combination and other related costs as % of total revenues |
— |
% |
|
|
|
Non-GAAP operating margin |
29.5 |
% |
|
|
|
GAAP net cash provided by operating activities as % of total revenues |
39 |
% |
|
|
|
Purchases of property and equipment as % of total revenues |
(8 |
%) |
|
|
|
Business combination and other related costs as % of total revenues |
— |
% |
|
|
|
Non-GAAP free cash flow margin |
31 |
% |
|
|
|
Note: Numbers are rounded for presentation purposes and may not foot. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724663858/en/
Media Contact:
Johnna Hoff
(408) 250-8644
press@servicenow.com
Investor Contact:
Darren Yip
(925) 388-7205
ir@servicenow.com
Source: ServiceNow, Inc.
FAQ
What were ServiceNow's subscription revenues for Q2 2024?
How much did ServiceNow's total revenues grow in Q2 2024?
What is ServiceNow's current remaining performance obligations (cRPO) as of Q2 2024?
What was the year-over-year growth in ServiceNow's remaining performance obligations (RPO) in Q2 2024?
How many customers does ServiceNow have with over $1 million in annual contract value as of Q2 2024?
Why did CJ Desai resign from ServiceNow?