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Subscription revenue: $2.715 billion, representing growth of 22.5% year-on-year in constant currency.
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Operating margin: More than 31%, beating forecasts by more than 150 basis points.
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Current RPO: $9.36 billion, representing growth of 23.5% year-on-year in constant currency.
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Free cash flow margin: 17%, up more than 800 basis points year-on-year.
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Cash flow and investments: $9.1 billion at the end of the quarter.
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Share buyback: About 272,000 shares were repurchased, with $562 million remaining on authorization.
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Guidance for 2024 subscription revenue: Increased from $10.655 billion to $10.66 billion, representing 23% year-over-year growth.
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Fourth Quarter Subscription Revenue Forecast: Between $2.8 and $2.85 billion, representing growth of 21.5% to 22% year-on-year.
Release date: October 23, 2024
For the full transcript of the earnings call, please refer to full transcript of earnings call.
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ServiceNow Inc (NYSE: NOW) reported strong Q3 2024 results, outperforming all revenue and profitability metrics, with subscription revenue growth of 22.5% at constant currency.
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The company delivered an operating margin of more than 31%, beating forecasts by more than 150 basis points, and closed 96 deals greater than $1 million in net new ACV.
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ServiceNow Inc (NYSE: NOW) continues to expand its strategic relevance, with its platform adopted as a governance control tower for AI, integrating with other systems to modernize workflows.
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The company launched significant AI innovations, including the Xanadu release with over 350 new innovations, enhancing its platform’s capabilities for analytics, custom skill development, and industry-specific solutions .
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ServiceNow Inc (NYSE: NOW) is experiencing growing brand awareness and market opportunities, through partnerships and collaborations with major companies like Siemens, Zoom and Nvidia, expanding its addressable market to nearly half a trillion dollars.
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Despite strong performance, the macroeconomic environment remains complex, with a value-based market requiring continued innovation and execution.
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There is a potential risk of over-reliance on AI and new technologies, which could face adoption and integration challenges across various customer environments.
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Rapid business expansion and growth in its workforce, particularly in sales and marketing, may result in increased operational costs and require careful management to maintain profitability.
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ServiceNow Inc (NYSE: NOW) faces competition in the field of AI and enterprise software, which requires continuous innovation to maintain its leadership position.
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Integrating new technologies and partnerships, while beneficial, could pose challenges in terms of execution and alignment with existing systems and customer expectations.
