The earnings call highlighted ServiceNow's strong performance and strategic growth in AI and partnerships, with robust financial metrics and positive future outlook. However, some challenges such as federal business seasonality, tax headwinds, and FX impacts were noted, but these are outweighed by the positive achievements and plans.

Company Guidance

During the call, ServiceNow provided robust guidance for the first quarter and full year 2025, emphasizing their strategic shift towards incorporating more consumption-based monetization for AI and data solutions. They projected subscription revenues between $12.635 billion and $12.675 billion, reflecting a 20% year-over-year growth at constant currency. The company highlighted their 29.5% operating margin for 2024 and projected a 30.5% operating margin for 2025, alongside a free cash flow margin of 32%. Notably, they reported a remaining performance obligation (RPO) of $22.3 billion, representing a 26% year-over-year growth. ServiceNow also discussed their strategic focus on AI, particularly their Pro Plus AI offerings, which saw 150% quarter-over-quarter deal growth, and their plans to leverage AI to enhance customer and employee workflows, driving significant efficiency gains and positioning themselves as a leader in enterprise AI solutions.

Record-Breaking Performance and Business Fundamentals

ServiceNow exceeded expectations for the fourth quarter, achieving subscription revenue growth of 21% and CRPO growth of 22%, with an operating margin of 29.5%. The company's RPO reached nearly $23 billion, and it holds $10 billion in cash and investments.

AI Innovation and Growth

ServiceNow saw stunning 150% quarter-over-quarter deal growth in Pro Plus AI offerings, with 1,000 customers on the Agentic AI journey. The Pro Plus SKUs maintained a greater than 30% price uplift over Pro, indicating strong value delivery.

Strategic Partnerships and Ecosystem Expansion

ServiceNow expanded collaborations with major partners like AWS, Google Cloud, and Microsoft to accelerate AI transformation and offer new solutions in the marketplace, enhancing the company's ecosystem.

Strong Customer Engagement and New Deals

ServiceNow closed 170 deals greater than $1 million in net new ACV in Q4, including the largest new logo deal in company history, reflecting strong customer trust and market penetration.

Positive Outlook and Future Growth Plans

ServiceNow is on track to achieve $15 billion plus revenue by 2026, with a bold ambition for $30 billion plus in the future, supported by a healthy balance sheet and strategic investments in AI and data solutions.

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ServiceNow (NOW) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

NOW Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 25, 2018	2018 (Q2)	- / 0.49	0.22	122.73% (+0.27)	―	―
Oct 24, 2018	2018 (Q3)	- / 0.68	0.38	78.95% (+0.30)	―	―
Jan 30, 2019	2018 (Q4)	- / 0.77	0.35	120.00% (+0.42)	―	―
Apr 24, 2019	2019 (Q1)	- / 0.67	0.56	19.64% (+0.11)	―	―
Jul 24, 2019	2019 (Q2)	- / 0.71	0.49	44.90% (+0.22)	―	―
Oct 23, 2019	2019 (Q3)	- / 0.99	0.68	45.59% (+0.31)	―	―
Jan 29, 2020	2019 (Q4)	- / 0.96	0.77	24.68% (+0.19)	―	―
Apr 29, 2020	2020 (Q1)	- / 1.05	0.67	56.72% (+0.38)	―	―
Jul 29, 2020	2020 (Q2)	- / 1.23	0.71	73.24% (+0.52)	―	―
Oct 28, 2020	2020 (Q3)	- / 1.21	0.99	22.22% (+0.22)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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NOW Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jan 29, 2025	$1143.63	$1012.75	-11.44%
Oct 23, 2024	$907.68	$956.58	+5.39%
Jul 24, 2024	$730.87	$828.79	+13.40%
Apr 24, 2024	$746.29	$716.25	-4.03%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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