Core Insights - NowVertical Group Inc. is participating in the Qlik AI Reality Tour in São Paulo, Brazil on July 29, 2025, highlighting its role in the enterprise AI landscape [1][2] - The company was recently recognized as Qlik's 2024 Latin America Channel Growth Partner of the Year, indicating its expanding global presence and commitment to technology partnerships [2] - NowVertical will showcase a case study on Natural One, demonstrating how its collaboration with Qlik transformed the company's data architecture and operational processes [2][3] - The event allows NowVertical to engage with enterprise customers and peers, emphasizing its capability in delivering measurable results through data intelligence [3][4] - CEO Sandeep Mendiratta stated that NowVertical is positioned to help organizations operationalize AI effectively, enhancing its role as a trusted transformation partner [4] Company Overview - NowVertical is a global data and analytics company focused on transforming data into business value using AI [5] - The company offers a comprehensive suite of solutions that enable clients to harness their data for improved decision-making and operational efficiency [5] - NowVertical is pursuing growth both organically and through strategic acquisitions, enhancing its capabilities in the data analytics and AI sectors [5]

Group 1 - Major stock indices futures are up, with Dow futures rising by 0.50%, S&P 500 futures by 0.39%, and Nasdaq futures by 0.20% [1] - The Trump administration has announced an AI action plan, leading to a surge in chip stocks, with Broadcom up 2.6%, Nvidia up 1.5%, and AMD up 1.29% [1] - Tesla reported Q2 revenue of $22.5 billion, a 12% year-over-year decline, with earnings per share at $0.40, down 23% from the previous year, resulting in a stock drop of 6.56% [1] Group 2 - Google reported Q2 revenue of $96.4 billion and earnings per share of $2.31, exceeding analyst expectations, leading to a stock increase of 3.1% [2] - IBM's Q2 revenue was $73.9 billion, slightly below analyst expectations of $74.3 billion, resulting in a stock decline of 5.35% [3] - T-Mobile added 1.7 million postpaid customers in Q2, achieving its best quarterly performance, with stock rising by 5.20% [3] - Nokia's Q2 results fell short of expectations, with projected operating profit for the year revised down to between €1.6 billion and €2.1 billion [3] - ServiceNow reported Q2 profit of $385 million and revenue growth of approximately 23% to $3.22 billion, leading to a stock increase of 7.17% [4]

Group 1 - The core point of the article is that ServiceNow's stock rose over 7% in pre-market trading after the company raised its annual subscription revenue forecast [1] Group 2 - ServiceNow is identified as a SaaS giant, indicating its significant presence in the Software as a Service industry [1]

Market Overview - The markets experienced a strong trading session, driven by a new trade deal with the Japanese auto industry, with the Dow gaining 507 points (+1.14%) and the S&P 500 reaching a new all-time closing high of 6358 (+0.78%) [1] Existing Home Sales - Existing Home Sales fell to 3.93 million, the lowest since September of the previous year, while the average sale price rose to a record high of $435,300 for June [2] Q2 Earnings Reports - **Alphabet (GOOGL)**: Reported earnings of $2.31 per share, exceeding expectations of $2.15, with revenues of $81.7 billion, up 14% year over year [3] - **YouTube**: Ad revenue increased by nearly 13% to $9.8 billion, with a services margin above 40% [4] - **Tesla (TSLA)**: Reported earnings of 33 cents per share, missing the consensus of 39 cents, with revenues of $22.5 billion, slightly above estimates [5] - **IBM**: Earnings of $2.80 per share surpassed estimates of $2.64, with revenues of $16.98 billion, exceeding expectations of $16.58 billion [6] - **Chipotle (CMG)**: Earnings of 33 cents per share beat estimates by a penny, but revenues were flat at $3.10 billion, with comparable sales down 4% [7] - **ServiceNow (NOW)**: Achieved earnings of $4.09 per share, significantly above the projected $3.54, with revenues of $3.22 billion, up 22.5% year over year [8] Upcoming Economic Indicators - Anticipated reports include Weekly Jobless Claims, flash S&P Services and Manufacturing PMI for July, and New Home Sales for June [9]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Table of Contents FORM 10-Q (Mark One) ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2025 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-35580 SERVICENOW,INC. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Dela ...

Group 1 - ServiceNow reported $3.22 billion in revenue for the quarter ended June 2025, a year-over-year increase of 22.4% [1] - The EPS for the same period was $4.09, compared to $3.13 a year ago, indicating a significant growth [1] - The reported revenue exceeded the Zacks Consensus Estimate of $3.12 billion, resulting in a surprise of +3.02% [1] Group 2 - The company delivered an EPS surprise of +15.54%, with the consensus EPS estimate being $3.54 [1] - Current Remaining Performance Obligations (cRPO) were $10.92 billion, surpassing the $10.48 billion average estimate [4] - Remaining Performance Obligations (RPO) totaled $23.90 billion, compared to the $22.11 billion average estimate [4] Group 3 - Revenues from Professional services and other reached $102 million, exceeding the $88.78 million estimated by analysts [4] - Subscription revenues were $3.11 billion, compared to the $3.03 billion estimated by analysts, reflecting a +22.5% change year-over-year [4] - Gross Profit (Non-GAAP) from Subscription was $2.59 billion, slightly above the $2.53 billion estimated by analysts [4]

Core Viewpoint - ServiceNow reported quarterly earnings of $4.09 per share, exceeding the Zacks Consensus Estimate of $3.54 per share, and up from $3.13 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was +15.54%, with the company having surpassed consensus EPS estimates in all four of the last quarters [2] - ServiceNow's revenues for the quarter reached $3.22 billion, surpassing the Zacks Consensus Estimate by 3.02%, and up from $2.63 billion year-over-year [3] Stock Performance - ServiceNow shares have declined approximately 9.2% since the beginning of the year, contrasting with the S&P 500's gain of 7.3% [4] - The current Zacks Rank for ServiceNow is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $4.21 on revenues of $3.29 billion, and for the current fiscal year, it is $16.55 on revenues of $13.01 billion [8] - The industry outlook is critical, with the Computers - IT Services sector currently in the bottom 29% of Zacks industries, which may impact stock performance [9]

Financial Data and Key Metrics Changes - Subscription revenue for Q2 was $3,113 million, growing 21.5% year-over-year in constant currency, exceeding guidance by 200 basis points [26] - Remaining Performance Obligations (RPO) ended at approximately $23,900 million, representing 25.5% year-over-year constant currency growth [26] - Current RPO was $10,920 million, reflecting 21.5% year-over-year constant currency growth, also a 200 basis point beat versus guidance [26] - Operating margin was 29.5%, over 250 basis points above guidance, while free cash flow margin was 16.5%, up 300 basis points year-over-year [31] Business Line Data and Key Metrics Changes - Technology workflows had 40 deals over $1 million, including four over $5 million [7] - CRM and industry workflows showed strong momentum with 17 of the top 20 deals over $1 million [7] - ITAM Now Assist net new ACV surged nearly six times quarter-over-quarter, with average deal sizes more than tripling [29] - ITSM Plus and CSM Plus deal volume quadrupled year-over-year, while ITOM Plus tripled and HRSD Plus doubled [30] Market Data and Key Metrics Changes - Transportation and logistics delivered over 100% year-over-year net new ACV growth [26] - Technology, media, and telecom sectors grew over 70% year-over-year, while retail and hospitality, and energy and utilities each grew over 50% year-over-year [27] - The company achieved a robust 98% renewal rate, showcasing its strategic importance as an AI platform for business transformation [27] Company Strategy and Development Direction - The company is focused on AI, data, and workflows as key growth drivers, with a strong emphasis on integrating AI across all business functions [8][10] - The CRM opportunity is viewed as massive, with a shift towards autonomous front-end agents expected to render traditional CRM obsolete [14] - The acquisition of Logic AI is aimed at reimagining CRM and delivering a fully integrated AI-powered front office [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the global environment is rapidly changing, with AI transformation being a top priority for enterprises [9] - The company remains confident in its guidance for Q3 and the remainder of 2025, despite challenges in the U.S. federal sector [33][49] - The outlook for 2025 has been raised, with subscription revenue expected to be between $12,775 million and $12,795 million, representing 20% year-over-year growth [34] Other Important Information - The company closed 89 deals greater than $1 million in net new ACV during the quarter, with 11 deals over $5 million [28] - The company ended Q2 with approximately $10,800 million in cash and investments, and bought back approximately 381,000 shares as part of its share repurchase program [31] Q&A Session Summary Question: What is driving the better-than-expected execution? - Management attributed the success to a strong culture and the transformative impact of AI on business models, leading to larger business cases across industries [40][42] Question: How is the federal sector performing? - Despite challenges, the federal team executed well, closing six new logos in Q2, and management is building prudence into their assumptions for the U.S. federal sector [48][49] Question: What are the immediate opportunities in front office workflows? - The CRM opportunity is significant, with a focus on sales and order management, and the company is addressing pain points in the market with its integrated solutions [62][64] Question: How is the demand environment changing? - Management indicated that the demand environment remains open for AI innovation, with companies needing an agentic AI layer to adapt to changing market conditions [85][88] Question: What is the outlook for operating margins? - Management is maintaining a conservative outlook for operating margins while investing in growth to meet demand for AI transformation [102][103]

Financial Data and Key Metrics Changes - Subscription revenues for Q2 reached $3,113 million, growing 21.5% year over year in constant currency, exceeding guidance by 200 basis points [27] - Remaining Performance Obligations (RPO) ended at approximately $23,900 million, representing 25.5% year over year constant currency growth [27] - Current RPO was $10,920 million, reflecting 21.5% year over year constant currency growth, also a 200 basis point beat versus guidance [27] - Operating margin was reported at 29.5%, over 250 basis points above guidance, while free cash flow margin was 16.5%, up 300 basis points year over year [26][32] Business Line Data and Key Metrics Changes - Technology workflows had 40 deals over $1 million, including four over $5 million, while ITSM, ITOM, ITAM, Security, and Risk were involved in at least 15 of the top 20 deals [7] - CRM and industry workflows maintained strong momentum with 17 of the top 20 deals exceeding $1 million [7] - The Now Assist product line saw significant growth, with net new ACV for ITAM surging nearly six times quarter over quarter [30] Market Data and Key Metrics Changes - Transportation and logistics delivered over 100% year over year growth in net new ACV, while technology, media, and telecom grew over 70% year over year [28] - Retail and hospitality, as well as energy and utilities, also showed strength, each growing over 50% year over year [28] - The company achieved a robust 98% renewal rate, highlighting its strategic importance as an AI platform for business transformation [28] Company Strategy and Development Direction - The company is focused on integrating AI into its workflows, emphasizing the importance of cross-functional work in AI applications [9][45] - The acquisition of Logic AI is aimed at reimagining CRM, with a strong push into the front office and significant growth in CPQ [15][30] - The company is positioning itself as a leader in enterprise AI, with a vision of embedding AI agents into everyday tools rather than traditional CRM screens [14][67] Management's Comments on Operating Environment and Future Outlook - Management noted that the global environment is rapidly changing, with AI transformation being a top priority for enterprises across all industries [8][9] - The company remains confident in its guidance for Q3 and the remainder of 2025, despite navigating challenges in the U.S. federal sector [34][53] - The outlook for 2025 has been raised, with subscription revenue expected to reach between $12,775 million and $12,795 million, representing 20% year over year growth [34] Other Important Information - The company ended Q2 with approximately $10,800 million in cash and investments, and bought back approximately 381,000 shares as part of its share repurchase program [32] - The company is investing in AI talent and technical selling to meet the growing demand for AI transformation [110] Q&A Session Summary Question: What is driving the better-than-expected execution? - Management attributed the success to a strong culture and the transformative impact of AI, which has led to larger business cases across all industries [41][44] Question: How is the pipeline for federal activity? - Management indicated that despite uncertainties, the federal team executed well, closing six new logos in Q2, and they are building prudence into their assumptions for the U.S. federal sector [51][53] Question: Are customers using AI Control Tower as a central control plane? - Management confirmed that the AI Control Tower is designed to manage all agents, including third-party agents, and is expected to enhance collaboration across business processes [55][60] Question: What are the immediate opportunities in front office workflows? - Management highlighted significant opportunities in sales and order management, particularly in public sector entities looking to replace fragmented legacy CRM systems [66][69] Question: What drove the robust upside in revenue guidance? - Management noted strong net new ACV performance and better-than-expected on-prem performance, largely due to early renewals [120]

Core Insights - ServiceNow reported strong financial results for Q2 2024, with revenue growth of 22.5% and adjusted EPS growth of 31%, exceeding analyst expectations [2][3] - The company's remaining performance obligations increased by 29% to $23.9 billion, indicating robust future revenue potential [2][3] Financial Performance - Revenue for Q2 2024 was $2.63 billion, while Q2 2025 is projected at $3.22 billion, reflecting a 22.5% increase [2] - Adjusted EPS rose from $3.13 in Q2 2024 to $4.09 in Q2 2025, marking a 31% growth [2] - Subscription revenue is expected to grow from $2.54 billion in Q2 2024 to $3.11 billion in Q2 2025, also a 22.5% increase [2] Growth Drivers - Artificial intelligence played a crucial role in driving growth, with the CEO highlighting the importance of the ServiceNow AI Platform in transforming business processes across industries [4] - The company signed 89 new contracts worth at least $1 million in annual value during Q2, and has 528 customers spending over $5 million annually [5] Product Developments - ServiceNow introduced agentic workforce management, enhancing its AI capabilities by allowing users to manage and train AI agents directly on its platform [6] Market Reaction - Following the strong Q2 results, ServiceNow's shares rose approximately 7% in after-hours trading, recovering from a 9% decline year-to-date prior to the report [7] Future Guidance - For Q3, ServiceNow anticipates subscription revenue between $3.26 billion and $3.265 billion, representing a year-over-year growth of 20% to 20.5% [8] - The company expects remaining performance obligations to increase by 18.5% over the next year, with a full-year subscription revenue growth target of 20% [8] Strategic Outlook - ServiceNow's focus on AI, particularly agentic AI, is seen as a key long-term growth driver, although potential budget changes from U.S. federal government customers may pose challenges [9]