Financial Data and Key Metrics - Subscription revenue growth was 22.5% at constant currency, 200 basis points above the high end of guidance [4] - Current RPO (cRPO) grew 23.5% at constant currency, 150 basis points above guidance [4] - Operating margin exceeded 31%, more than 150 basis points above guidance [4] - Free cash flow margin was 17%, up over 800 basis points year-over-year [22] - The company closed 96 deals greater than $1 million in net new ACV, including six new logos [20] - RPO ended the quarter at approximately $19.5 billion, representing 33% year-over-year constant currency growth [19] Business Line Performance - ITSM and ITOM were each in at least 15 of the top 20 deals, with double-digit deals over $1 million [4] - Security and Risk combined for 14 of the top 20 deals, with 11 deals over $1 million [5] - Customer workflows had 15 of the top 20 deals and 17 deals over $1 million [5] - Employee workflows were in 13 of the top 20 deals, with nine deals over $1 million [5] - Creative workflows were strong again, with 17 of the top 20 deals and 13 deals over $1 million [5] Market Performance - Technology, media, and telecom grew net new ACV over 100% year-over-year [19] - Retail and hospitality grew net new ACV over 80% year-over-year [19] - Healthcare, life sciences, and manufacturing also saw strength [19] - U.S. Federal demonstrated outstanding execution, with five deals over $5 million and two over $20 million [19] Company Strategy and Industry Competition - ServiceNow is positioned as the AI platform for business transformation, with Now Assist being the fastest-growing product [7] - The company launched Xanadu, its biggest Gen AI release, with over 350 net new innovations [7] - ServiceNow is expanding its TAM to $0.5 trillion through innovations like RaptorDB and workflow data fabric [12][13] - The company is focusing on Agentic AI, aiming to be the control point for AI deployment across enterprises [9] Management Commentary on Operating Environment and Future Outlook - The company sees AI as a once-in-a-generation technological shift, with IDC forecasting a $20 trillion global impact by 2030 [9] - Management highlighted the growing strategic relevance of ServiceNow as the platform for modernizing enterprise systems [6] - The company is confident in its ability to deliver consistent growth, driven by AI and workflow automation [17] Other Important Information - ServiceNow announced a partnership with NVIDIA to co-create a shared vision on Agentic AI [11] - The company launched RaptorDB, a new ultrafast database built for AI-first enterprises, which processes transactions 12 times faster and analytics 27 times faster [12] - ServiceNow University was created to skill 3 million learners in the next few years [14] Q&A Session Summary Question: Market environment and demand outlook [26] - The market is value-based, with companies focusing on platforms that deliver real GenAI use cases [26] - ServiceNow's pipelines are strong, and global events are oversubscribed, indicating high demand [27] Question: Incremental opportunity with RaptorDB and data platform [28] - RaptorDB offers an upsell opportunity across the entire installed base, with seamless integration and faster performance [28] - The workflow data fabric allows access to any data source, aligning it with automated workflows [29][30] Question: Headcount growth and OpEx investment [32] - The company is increasing headcount, particularly in sales and R&D, to capitalize on AI and workflow data fabric opportunities [33] - R&D headcount growth is consistent, reflecting the focus on innovation [33] Question: Elite-level execution and durability [35] - ServiceNow attributes its execution to hiring great people, clear planning, and overcommunication [36] - The company believes it is far from hitting its peak and continues to innovate [37] Question: AI bookings and investment in AI infrastructure [40] - AI bookings are ramping up, with significant investments in AI infrastructure, including partnerships with GPU providers [40] - The company sees AI as a key driver of future growth [41] Question: Federal business update [62] - The federal business is strong, with no impact from partner issues and significant growth in net new ACV [63] - GenAI is a top priority for federal agencies, with ServiceNow being the standard platform for digital transformation [63] Question: Customer upgrades from Standard to Pro [66] - The company is seeing an uptick in customers upgrading from Standard to Pro, driven by GenAI adoption [66] - RaptorDB is also driving upgrades due to its performance benefits [67] Question: Autonomous agents and technology advancements [69] - ServiceNow's autonomous agents are powered by RaptorDB, workflow data fabric, and NVIDIA's NIM advancements [69] - These technologies are already in use, with significant traction expected in Q4 [70] Question: C-level executives' view on AI budgets [74] - IT budgets are growing, with GenAI and workflow automation being top priorities [75] - ServiceNow is gaining share in the market, with potential for further investment from other departments [76] Question: Amit Zavery's role and pricing expertise [77] - Amit Zavery's expertise in packaging and pricing is expected to enhance ServiceNow's product strategy [78] - His focus will be on engineering leadership and driving new growth opportunities [79]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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 September 30, 2024 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) Delaware 20-2056195 (State or other jurisdiction of incorporat ...

ServiceNow (NOW) reported $2.8 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 22.3%. EPS of $3.72 for the same period compares to $2.92 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $2.74 billion, representing a surprise of +2.06%. The company delivered an EPS surprise of +7.51%, with the consensus EPS estimate being $3.46.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...

ServiceNow (NOW) came out with quarterly earnings of $3.72 per share, beating the Zacks Consensus Estimate of $3.46 per share. This compares to earnings of $2.92 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.51%. A quarter ago, it was expected that this maker of software that automates companies' technology operations would post earnings of $2.85 per share when it actually produced earnings of $3.13, delivering a surprise ...

ServiceNow Reports Third Quarter 2024 Financial Results • ServiceNow exceeds guidance across all Q3 2024 topline growth and profitability metrics; raises 2024 subscription revenues guidance • Subscription revenues of $2,715 million in Q3 2024, representing 23% year-over-year growth, 22.5% in constant currency • Total revenues of $2,797 million in Q3 2024, representing 22% year-over-year growth, 22% in constant currency • Current remaining performance obligations of $9.36 billion as of Q3 2024, representing ...

Which of these popular AI stocks has a brighter future? ServiceNow (NOW -0.37%) and AppLovin (APP 9.39%) are both high-growth tech companies that leverage artificial intelligence (AI) to simplify tasks for companies. ServiceNow cleans up unstructured work patterns with its cloud-based digital workflow platform so companies can expand more efficiently, cut costs, and support their hybrid and remote workers. AppLovin publishes its own mobile games, but it also develops AI-powered app monetization tools for ot ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores sy ...

ServiceNow (NOW) is scheduled to release its third-quarter 2024 results on July 24. The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $2.74 billion, indicating 19.78% growth from the figure reported in the year-ago quarter. The consensus mark for earnings is pegged at $3.46 per share, indicating growth of 18.49% from the figure reported in the year-ago quarter. The earnings figure has remained unchanged over the past 30 days. ServiceNow's earnings beat the Zacks Consensus Estim ...

The stock already looks expensive, but Jefferies sees 20% more upside. ServiceNow (NOW 0.51%) stock has marched to new highs this year, and Wall Street analysts are generally bullish on the stock's prospects. Samad Samana has a "buy" rating on ServiceNow, and the Jefferies analyst recently raised their price target from $900 to $1,100, implying near-term upside of 20% for the stock. ServiceNow's software has been in high demand as businesses look for ways to improve employee productivity. However, the stock ...

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