Revenue Growth - Subscription revenues for Q2 2024 increased to 2.542billion,up22.52.075 billion in Q2 2023[2] - Total revenues for Q2 2024 reached 2.627billion,a22.22.150 billion in Q2 2023[2] - Subscription revenues for Q2 2024 were 2,542million,representing232,627 million, representing 22% year-over-year growth[25] - ServiceNow's full-year 2024 subscription revenue guidance is 10,575−10,585 million, representing 22% year-over-year growth[48] Net Income and Profitability - Net income for Q2 2024 was 262million,comparedto1.044 billion in Q2 2023, impacted by a discrete income tax benefit in the prior year[2] - Non-GAAP net income for Q2 2024 was 651million,up34486 million in Q2 2023[5] - Net income for the three months ended June 30, 2024 was 262million,comparedto1,044 million in the same period last year[12] - Q2 2024 GAAP operating income was 240million,comparedto117 million in Q2 2023, with non-GAAP operating income reaching 720million,upfrom544 million in the same period last year[68] - Q2 2024 GAAP net income was impacted by a 910millionreleaseofavaluationallowanceondeferredtaxassetsand55 million as part of the effective tax rate[62] - Non-GAAP operating margin for Q2 2024 was 27%, up from 25% in Q2 2023, driven by improved efficiency and cost management[60] - Non-GAAP operating margin guidance for Q3 2024 is 29.5%, reflecting continued operational efficiency[80] Cash Flow and Financial Position - Free cash flow for Q2 2024 was not explicitly stated, but the company emphasizes its importance as an indicator of business strength[10] - Net cash provided by operating activities for the six months ended June 30, 2024 was 1,961million,upfrom1,482 million in the prior year period[12] - Free cash flow margin for Q2 2024 was 14%, down from 21% in Q2 2023, primarily due to increased capital expenditures[69] - Cash, cash equivalents and restricted cash at the end of the period was 2,167millionforthesixmonthsendedJune30,2024,comparedto1,670 million in the same period last year[12] - Non-GAAP free cash flow margin was 31% for the three and six months ended June 30, 2024[17] - Purchases of property and equipment totaled 397millionforthesixmonthsendedJune30,2024,upfrom297 million in the prior year period[12] Assets and Liabilities - Current assets as of June 30, 2024, totaled 8.021billion,upfrom7.777 billion at the end of 2023[3] - Total liabilities and stockholders' equity as of June 30, 2024, stood at 18.207billion,comparedto17.387 billion at the end of 2023[3] - The company reclassified 184millionfrominvestingactivitiestofinancingactivitiesrelatedtotheacquisitionofG2KGroupGmbH[67]Stock−BasedCompensationandExpenses−Stock−basedcompensationforQ22024was444 million, contributing to the reconciliation between GAAP and non-GAAP net income[5] - Stock-based compensation expense as a percentage of subscription revenues was 2% for the three and six months ended June 30, 2024[16] - Stock-based compensation expense as a percentage of total revenues was 17% in Q2 2024, consistent with Q2 2023[60] - Amortization of purchased intangibles as a percentage of total revenues remained stable at 1% in Q2 2024[60] Performance Obligations - Current remaining performance obligations (cRPO) for Q2 2024 were 8.78billion,representing2218.6 billion, representing 31% year-over-year growth[25] Generative AI and Strategic Investments - Generative AI contributed significantly, with NNACV for Now Assist doubling quarter over quarter and 11 deals greater than 1millioninQ2[25]−ServiceNowacquiredRaytion,aGermany−basedleaderininformationretrievaltechnology,toenhanceGenAI−poweredsearchandknowledgemanagementcapabilities[25]−ServiceNowmadeitsfirsttelecommunications−focusedEcosystemVenturesinvestmentinProdapttoaccelerateAI−enabledsolutions[28]InternationalExpansionandCloudServices−ServiceNowannouncedplansforaUAECloud,hostedonMicrosoftAzure,withtargeteddeliveryinthefirsthalfof2025[28]−ConstantcurrencyadjustmentswereappliedtoQ22024revenuesusingexchangeratesof1USDto0.93Eurosand1USDto0.79GBP[55]TaxandCurrencyImpact−Thecompanyisusinganon−GAAPtaxrateof2020 million FX headwind to 2024 subscription revenues compared to previous guidance[70] Investor Relations and Communication - The company will host a conference call on July 24, 2024, at 2 p.m. PT to discuss the financial results[8] - The live webcast of the conference call will be available on the ServiceNow investor relations website[9] Gross Profit and Margins - GAAP subscription gross profit for the six months ended June 30, 2024 was 4,155million,comparedto3,356 million in the same period last year[13] - Non-GAAP subscription gross margin was 85% for both the three and six months ended June 30, 2024[13] - GAAP operating margin was 12% for the three and six months ended June 30, 2024[16]
ServiceNow(NOW)2024-07-24 20:15