ServiceNow(NOW) - 2025 Q1 - Quarterly Results

Financial Performance - Subscription revenues for Q1 2025 reached $3,005 million, representing a 19% year-over-year growth and 20% in constant currency[2] - Total revenues for Q1 2025 were $3,088 million, indicating an 18.5% year-over-year growth and 19.5% in constant currency[7] - Net income for Q1 2025 was $460 million, compared to $347 million in Q1 2024, reflecting a 32% increase[44] - Gross profit for Q1 2025 was $2,437 million, representing a gross margin of approximately 79%[44] - Non-GAAP net income for the three months ended March 31, 2025, was $846 million, an increase of 19.7% from $707 million in the same period last year[51] - GAAP subscription gross profit increased to $2,444 million for the three months ended March 31, 2025, compared to $2,082 million in the prior year, reflecting a growth of 17.3%[50] - The company reported a diluted net income per share of $2.20 for Q1 2025, up from $1.67 in Q1 2024[44] - The company reported net cash provided by operating activities of $1,677 million, a 54.5% increase year-over-year[16] Revenue Guidance - For Q2 2025, ServiceNow expects subscription revenues between $3,030 million and $3,035 million, representing a growth of 19% to 19.5% year-over-year[22] - Full-year 2025 subscription revenue guidance is set at $12,640 million to $12,680 million, indicating an 18.5% to 19% year-over-year growth[24] Shareholder Actions - The company repurchased approximately 316,000 shares for $298 million, with about $3 billion remaining for future repurchases from an authorized amount of $4.5 billion[10] Customer Metrics - The company had 72 transactions over $1 million in net new annual contract value (ACV) during Q1, with 508 customers having more than $5 million in ACV, a 20% year-over-year growth[3] Cash and Assets - Current assets increased to $9,270 million as of March 31, 2025, compared to $9,187 million at the end of 2024[46] - Cash and cash equivalents rose to $3,369 million from $2,304 million year-over-year[46] - Cash, cash equivalents, and restricted cash at the end of the period totaled $3,377 million, compared to $2,064 million at the end of the same period last year, marking a 63.7% increase[48] Profit Margins - ServiceNow's subscription gross profit margin for Q1 2025 was 81.5%[16] - The company reported a GAAP gross margin of 79% for the three months ended March 31, 2025, down from 80% in the previous year[50] - Non-GAAP subscription gross margin was 84.5% for the three months ended March 31, 2025, compared to 85.5% in the prior year[50] - GAAP operating margin improved to 14.5% for the three months ended March 31, 2025, compared to 12.5% in the prior year[51] - The company expects a GAAP operating margin of 10% for the three months ending June 30, 2025[54] - Non-GAAP operating margin guidance for the twelve months ending December 31, 2025, is projected at 30.5%[55] Future Plans - ServiceNow plans to acquire Moveworks and Logik.ai to enhance its AI capabilities and CRM offerings[8] - ServiceNow plans to host its Financial Analyst Day on May 5, 2025, to discuss financial updates and AI integration[30] - The company is actively participating in multiple investor conferences throughout 2025 to enhance market engagement[34] Free Cash Flow - Free cash flow for the period was not explicitly stated, but the company emphasizes its importance as an indicator of operational strength[39]