• ServiceNow exceeds guidance across all Q1 2025 topline growth and profitability metrics
• Subscription revenues of $3,005 million in Q1 2025, representing 19% year-over-year growth, 20% in constant currency
• Total revenues of $3,088 million in Q1 2025, representing 18.5% year-over-year growth, 19.5% in constant currency
• Current remaining performance obligations of $10.31 billion as of Q1 2025, representing 22% year-over-year growth, 22% in constant currency
• Remaining performance obligations of $22.1 billion as of Q1 2025, representing 25% year-over-year growth, 25.5% in constant currency
• Crossed 500 customers with more than $5 million in ACV

SANTA CLARA, Calif.: ServiceNow (NYSE: NOW), the AI platform for business transformation, today announced financial results for its first quarter ended March 31, 2025, with subscription revenues of $3,005 million in Q1 2025, representing 19% year-over-year growth and 20% in constant currency.

“ServiceNow’s position as the platinum standard for enterprise-grade AI drove these outstanding first quarter results,” said ServiceNow Chairman and CEO Bill McDermott. “Our platform is delivering real business transformation to empower CEOs with speed and agility to lead through this fast-changing environment. ServiceNow is meeting the moment, driving immediate value creation for customers and shareholders.”

As of March 31, 2025, current remaining performance obligations (“cRPO”), contract revenue that will be recognized as revenue in the next 12 months, was $10.31 billion, representing 22% year-over-year growth and 22% in constant currency, exceeding guidance by 250 bps and 150 bps, respectively. The company had 72 transactions over $1 million in net new annual contract value (“ACV”) in Q1, and ended the quarter with 508 customers with more than $5 million in ACV, representing approximately 20% year-over-year growth.

“Q1 was a quarter of great execution in a dynamic market,” said ServiceNow President and CFO Gina Mastantuono. “The team outperformed on both Now Assist and broader net new ACV goals, delivering a significant cRPO beat versus our guidance. Our use of AI internally also continues to drive meaningful opex efficiencies, yielding strong profitability and free cash flow. In times of uncertainty, customers focus on maximizing ROI and reducing costs. That’s exactly where the ServiceNow Platform excels, and we are at the forefront of the AI opportunity to drive even greater value for our customers.”

Recent Business Highlights

Innovation

• Throughout the quarter, ServiceNow unveiled breakthrough agentic AI innovations to autonomously solve the most complex enterprise challenges. Customers can now access thousands of preconfigured AI agents across CRM, HR, IT, and more, plus AI Agent Studio for building fully customized AI agents. In addition, ServiceNow’s powerful AI Agent Orchestrator ensures teams of specialized AI agents work together across tasks, systems, and departments to achieve a specific goal.
• With the Yokohama platform release, ServiceNow expanded its agentic AI capabilities with advancements in Workflow Data Fabric and Common Service Data Model, as well as expanded performance management capabilities within the company’s overall agentic AI framework.
• ServiceNow also unveiled AI agents for the telecom industry to drive productivity across service lifecycles. Built on NVIDIA AI, the initial agent use cases will help communications service providers (CSPs) autonomously handle common, labor-intensive workflows in customer service and network operations, speeding up problem resolution and improving customer experiences.
• In line with the U.S. federal government’s priorities of transparency, accountability, and efficiency, ServiceNow launched its Government Transformation Suite, designed to increase visibility, accelerate ROI, and drive efficiencies. The company also announced faster availability of its agentic AI capabilities for the public sector.

Acquisitions and Partnerships

• ServiceNow announced its plans to acquire Moveworks. This acquisition will combine ServiceNow’s agentic AI and automation strengths with Moveworks’ front-end AI assistant and enterprise search technology to deliver a unified search and self-service experience.
• Earlier this month, ServiceNow announced its plans to acquire Logik.ai, an industry leader in CRM with a modern, AI-powered, and composable Configure, Price, Quote (CPQ) solution to empower sales teams to close deals faster, increase productivity, and operate more efficiently. With the addition of Logik.ai’s sales and commerce solution, ServiceNow will enhance its ability to offer comprehensive sales, fulfillment, and service capabilities on a single platform within its CRM offering.
• Today, ServiceNow announced its latest partnerships that will further strengthen its ability to accelerate AI transformation for customers:
  • ServiceNow and Aptiv will combine the strengths of the ServiceNow Platform with Aptiv’s edge intelligence for mission-critical industries such as automotive, telecommunications, aerospace and defense, enterprise, and industrial sectors. This powerful, scalable solution will connect real-time data from complex equipment to online business systems for faster response times and smarter decision-making.
  • ServiceNow and Vodafone Business will launch an AI-powered service management solution leveraging ServiceNow's AI and automation capabilities and Vodafone's network expertise to offer personalized customer experiences, faster issue resolution, and improved operational efficiency.
  • ServiceNow and Devoteam will transform CRM for businesses in Europe and the Middle East, combining ServiceNow's AI and CRM capabilities with Devoteam's digital transformation services to improve customer, agent, and seller experiences.
• Additional partnerships throughout the quarter included:
  • ServiceNow and NVIDIA are deepening their collaboration to advance agentic AI for businesses by integrating NVIDIA's Llama Nemotron reasoning models onto the ServiceNow Platform for optimized AI agent deployment.
  • ServiceNow and DXC Technology are developing an AI-powered solution designed to modernize claims management and drive innovation for the life insurance sector.
  • ServiceNow and Google Cloud are collaborating on Google Cloud’s Agent2Agent (A2A) interoperability protocol to enable secure communication between agents across platforms and services, creating a unified agentic experience for field management.

Investment

• ServiceNow repurchased approximately 316,000 shares of its common stock for $298 million as part of its share repurchase program1, with the primary objective of managing the impact of dilution. Of the authorized amount of $4.5 billion, approximately $3 billion remains available for future share repurchases.

Recognition

• Earlier this month, ServiceNow was named a Leader in the IDC MarketScape: Worldwide SaaS and Cloud-Enabled Facility Management Applications 2024–2025 Vendor Assessment2, which we believe underscores ServiceNow’s strong foundation in AI and commitment to innovation.
• On March 4, ServiceNow was recognized as a Leader in The Forrester Wave™: Software Asset Management Solutions, Q1 20253, receiving highest possible scores in the vision, innovation, roadmap, and supporting services and offerings criteria.
• Throughout the quarter, ServiceNow received various accolades for its commitment to excellence and innovation, including placements on Fortune’s lists of World's Most Admired4 and Most Innovative Companies4, inclusion on the Forbes Most Trusted Companies in America list, and recognition on Ethisphere’s 2025 World’s Most Ethical Companies Honoree list.

Leadership Update

On April 21, 2025, Paul Smith notified the Company of his decision to resign from his position as the Company’s President, Global Customer and Field Operations, effective April 23, 2025. Smith will continue to serve in an advisory role until no later than September 30, 2025, to ensure a seamless transition and go-to-market continuity. He is succeeded by Paul Fipps, who was appointed President of Global Customer Operations. Fipps has a distinguished track record as a U.S. Army veteran and a C-level technology leader.

First Quarter 2025 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the first quarter 2025:

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 the effects of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts, and the non-GAAP growth rates for cRPO are adjusted only for constant currency to provide better visibility into the underlying business trends.

Over the course of Q1, we have seen the U.S. dollar weaken, providing a currency tailwind to our business. We also exceeded the high end of our subscription revenue guidance in the quarter. While our business remains strong, we are only flowing through part of those benefits into our full-year outlook. This allows us to factor in potential risks as they pertain to the current geopolitical environment.

The following table summarizes our guidance for the second quarter 2025:

The following table summarizes our guidance for the full-year 2025:

Conference Call Details

The conference call will begin at 2 p.m. Pacific Daylight Time (PDT) (21:00 GMT) on April 23, 2025. Interested parties may listen to the call by dialing (888) 330 2455 (Passcode: 8135305), or if outside North America, by dialing (240) 789 2717 (Passcode: 8135305). Individuals may access the live teleconference from this webcast.

https://events.q4inc.com/attendee/394574978

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 North America, by dialing (609) 800 9909 (Passcode: 8135305).

Investor Presentation Details

An investor presentation providing additional information, including forward-looking guidance, and analysis can be found at https://investors.servicenow.com.

Financial Analyst Day

ServiceNow will host its Financial Analyst Day 2025 on Monday, May 5, at 1:30 p.m. PDT in Las Vegas, Nevada. This half day program will feature presentations by ServiceNow executives, who will provide financial updates and showcase how ServiceNow is putting AI to work across every aspect of business to unlock full enterprise automation. A livestream will also be available the day of the event at https://investors.servicenow.com.

Upcoming Investor Conferences

ServiceNow today announced that it will attend and have executives present at four upcoming investor conferences.

These include:

• ServiceNow President, Chief Operating Officer and Chief Product Officer Amit Zavery will participate in a fireside chat at the JP Morgan Global Technology, Media & Communications Conference on Wednesday, May 14, 2025, at 7:40 a.m. PDT.
• ServiceNow Senior Vice President and General Manager Josh Kahn will participate in a fireside chat at the Bernstein Strategic Decisions Conference on Wednesday, May 28, 2025, at 8:00 a.m. PDT.
• ServiceNow Senior Vice President and General Manager Josh Kahn will participate in a fireside chat at the TD Cowen Technology, Media & Telecom Conference on Wednesday, May 28, 2025, at 10:15 a.m. PDT.
• ServiceNow President and Chief Financial Officer Gina Mastantuono will participate in a fireside chat at the Bank of America Global Technology Conference on Wednesday, June 4, 2025, at 12:30 p.m. PDT.

The live webcast for each 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.

• 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 Q1 2024, the average exchange rates in effect for our major currencies were 1 USD to 0.92 Euros and 1 USD to 0.79 British Pound Sterling (“GBP”)), rather than the actual average exchange rates in effect during the current period (for Q1 2025, the average exchange rates in effect for our major currencies were 1 USD to 0.95 Euros and 1 USD to 0.79 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.
  
• 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 Q1 2024, the end of the period exchange rates in effect for our major currencies were 1 USD to 0.93 Euros and 1 USD to 0.79 GBP), rather than the actual end of the period exchange rates in effect during the current period (for Q1 2025, the end of the period exchange rates in effect for our major currencies were 1 USD to 0.92 Euros and 1 USD to 0.77 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 purchased intangibles, legal settlements, business combination and other related costs and income tax effects and adjustments. 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 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 bu