| Imagery Source: Wikimedia Commons / Satyaki.snow |
| Information Source ServiceNow |
- ServiceNow exceeds guidance across all Q1 2025 topline growth and profitability metrics.
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- Subscription revenues of $3,005 million in Q1 2025, representing 19% year‑over‑year growth, 20% in constant currency
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- Total revenues of $3,088 million in Q1 2025, representing 18.5% year‑over‑year growth, 19.5% in constant currency
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- Current remaining performance obligations of $10.31 billion as of Q1 2025, representing 22% year‑over‑year growth, 22% in constant currency
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- Remaining performance obligations of $22.1 billion as of Q1 2025, representing 25% year‑over‑year growth, 25.5% in constant currency
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- Crossed 500 customers with more than $5 million in ACV
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| ServiceNow (NYSE: NOW), the AI platform for business transformation, today announced financial results for its first quarter ended March 31, 2025, with subscription revenues of $3,005 million in Q1 2025, representing 19% year‑over‑year growth and 20% in constant currency. |
| “ServiceNow’s position as the platinum standard for enterprise‑grade AI drove these outstanding first quarter results,” said ServiceNow Chairman and CEO Bill McDermott. “Our platform is delivering real business transformation to empower CEOs with speed and agility to lead through this fast‑changing environment. ServiceNow is meeting the moment, driving immediate value creation for customers and shareholders.” |
| As of March 31, 2025, the current remaining performance obligations (“cRPO”), contract revenue that will be recognised as revenue in the next 12 months, was $10.31 billion, representing 22% year‑over‑year growth and 22% in constant currency, exceeding guidance by 250 bps and 150 bps, respectively. The company had 72 transactions over $1 million in net new annual contract value (“ACV”) in Q1, and ended the quarter with 508 customers with more than $5 million in ACV, representing approximately 20% year‑over‑year growth. |
| “Q1 was a quarter of great execution in a dynamic market,” said ServiceNow President and CFO Gina Mastantuono. “The team outperformed on both Now Assist and broader net new ACV goals, delivering a significant cRPO beat versus our guidance. Our use of AI internally also continues to drive meaningful opex efficiencies, yielding strong profitability and free cash flow. In times of uncertainty, customers focus on maximising ROI and reducing costs. That’s exactly where the ServiceNow Platform excels, and we are at the forefront of the AI opportunity to drive even greater value for our customers.” |
| Recent Business Highlights |
| Innovation |
- Throughout the quarter, ServiceNow unveiled breakthrough agentic AI innovations to autonomously solve the most complex enterprise challenges. Customers can now access thousands of preconfigured AI agents across CRM, HR, IT, and more, plus AI Agent Studio for building fully customised AI agents. In addition, ServiceNow’s powerful AI Agent Orchestrator ensures teams of specialised AI agents work together across tasks, systems, and departments to achieve a specific goal.
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- With the Yokohama platform release, ServiceNow expanded its agentic AI capabilities with advancements in Workflow Data Fabric and Common Service Data Model, as well as expanded performance management capabilities within the company’s overall agentic AI framework.
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- ServiceNow also unveiled AI agents for the telecom industry to drive productivity across service lifecycles. Built on NVIDIA AI, the initial agent use cases will help communications service providers (CSPs) autonomously handle common, labour-intensive workflows in customer service and network operations, speeding up problem resolution and improving customer experiences.
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- In line with the U.S. federal government’s priorities of transparency, accountability, and efficiency, ServiceNow launched its Government Transformation Suite, designed to increase visibility, accelerate ROI, and drive efficiencies. The company also announced faster availability of its agentic AI capabilities for the public sector.
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| Acquisitions and Partnerships |
- ServiceNow announced its plans to acquire Moveworks. This acquisition will combine ServiceNow’s agentic AI and automation strengths with Moveworks’ front‑end AI assistant and enterprise search technology to deliver a unified search and self‑service experience.
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- Earlier this month, ServiceNow announced its plans to acquire Logik.ai, an industry leader in CRM with a modern, AI‑powered, and composable Configure, Price, Quote (CPQ) solution to empower sales teams to close deals faster, increase productivity, and operate more efficiently. With the addition of Logik.ai’s sales and commerce solution, ServiceNow will enhance its ability to offer comprehensive sales, fulfilment, and service capabilities on a single platform within its CRM offering.
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- Today, ServiceNow announced its latest partnerships that will further strengthen its ability to accelerate AI transformation for customers:
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- ServiceNow and Aptiv will combine the strengths of the ServiceNow Platform with Aptiv’s edge intelligence for mission‑critical industries such as automotive, telecommunications, aerospace and defence, enterprise, and industrial sectors. This powerful, scalable solution will connect real‑time data from complex equipment to online business systems for faster response times and smarter decision‑making.
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- ServiceNow and Vodafone Business will launch an AI‑powered service management solution leveraging ServiceNow's AI and automation capabilities and Vodafone's network expertise to offer personalised customer experiences, faster issue resolution, and improved operational efficiency.
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- ServiceNow and Devoteam will transform CRM for businesses in Europe and the Middle East, combining ServiceNow's AI and CRM capabilities with Devoteam's digital transformation services to improve customer, agent, and seller experiences.
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- Additional partnerships throughout the quarter included:
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- ServiceNow and NVIDIA are deepening their collaboration to advance agentic AI for businesses by integrating NVIDIA's Llama Nemotron reasoning models onto the ServiceNow Platform for optimised AI agent deployment.
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- ServiceNow and DXC Technology are developing an AI‑powered solution designed to modernise claims management and drive innovation for the life insurance sector.
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- ServiceNow and Google Cloud are collaborating on Google Cloud’s Agent2Agent (A2A) interoperability protocol to enable secure communication between agents across platforms and services, creating a unified agent experience for field management.
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| Investment |
- ServiceNow repurchased approximately 316,000 shares of its common stock for $298 million as part of its share repurchase program1, with the primary objective of managing the impact of dilution. Of the authorised amount of $4.5 billion, approximately $3 billion remains available for future share repurchases.
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| Recognition |
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| 1. The program does not have a fixed expiration date, may be suspended, or discontinued at any time, and does not obligate ServiceNow to acquire any amount of its common stock. The timing, manner, price, and amount of any repurchases will be determined by ServiceNow at its discretion and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations. |
| 2. Source: IDC MarketScape: Worldwide SaaS and Cloud‑Enabled Facility Management Applications 2024‑2025 Vendor Assessment (doc #US52038324, February 2025) |
| 3. Source: The Forrester Wave™: Software Asset Management Solutions, Q1 2025, Forrester Research, Inc., February 19, 2025 |
| Forrester Disclaimer
Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. For more information, read about Forrester’s objectivity at www.forrester.com/about‑us/objectivity/. |
| 1. ©2025 Fortune Media IP Limited. All rights reserved. Used under license. Fortune is a registered trademark, and Fortune World’s Most Admired Companies™ is a trademark of Fortune Media IP Limited and is used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse the products or services of, ServiceNow. |
| Leadership Update |
| On April 21, 2025, Paul Smith notified the Company of his decision to resign from his position as the Company’s President, Global Customer and Field Operations, effective April 23, 2025. Smith will continue to serve in an advisory role until no later than September 30, 2025, to ensure a seamless transition and go‑to‑market continuity. He is succeeded by Paul Fipps, who was appointed President of Global Customer Operations. Fipps has a distinguished track record as a U.S. Army veteran and a C‑level technology leader. |
| Financial Outlook |
| Our guidance includes GAAP and non‑GAAP financial measures. The non‑GAAP growth rates for subscription revenues are adjusted for constant currency by excluding the effects of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts, and the non‑GAAP growth rates for cRPO are adjusted only for constant currency to provide better visibility into the underlying business trends. |
| Throughout Q1, we have seen the U.S. dollar weaken, providing a currency tailwind to our business. We also exceeded the high end of our subscription revenue guidance in the quarter. While our business remains strong, we are only flowing through part of those benefits into our full‑year outlook. This allows us to factor in potential risks as they pertain to the current geopolitical environment. |
| For the full document, click the link below |
| ServiceNow, Inc |
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