Servicenow, Inc. · NYSE:NOW
Servicenow — Q3 2025 Earnings Presentation
25 slides from Servicenow's earnings presentation, Oct 29, 2025
Slide 1: Investor Presentation Third Quarter 2025
Investor Presentation Third Quarter 2025
Slide 2: Safe Harbor and other information
Safe Harbor and other information This presentation contains “forward‐looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. Forward‐looking statements include information concerning our possible or assumed strategy, futur
Slide 3: Statement Regarding Use of Non-GAAP Financial Measures
Statement Regarding Use of Non-GAAP Financial Measures We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. We adjust revenues and related growth rates (“revenues”), and current remaining performance
Slide 4: ServiceNow AI Platform
Technology Core Business CRM and Industry Creator Workflows Workflows Workflows Workflows Provide easy-to-follow Build connected cross- Accelerate digital processes across HR, Intelligently orchestrate enterprise workflow apps transformation with Procurement, Facilities, customer experiences to fast
Slide 5: We are the AI Platform for Business Transformation
We are the AI Platform for Business Transformation We move with the pace of Our approximately 8,400 global innovation to help customers customers(1) include over 85% of transform organizations across the Fortune 500. They all rely on Our aspiration is to be the every industry while upholding a Servi
Slide 6: Q3-25 Financial Highlights
Q3-25 Financial Highlights Increase Non-GAAP Constant Q3 2025 Results Quarterly Results Currency Impact(1) (Decrease) Y/Y Currency Y/Y (2) Subscription Revenues $3,299M 21.5% ~100bps tailwind 20.5% Current RPO (cRPO) $11.35B 21% ~100bps tailwind 20.5% Remaining Performance Obligations (RPO) $24.3B 2
Slide 7: 2025 Guidance Assumptions
2025 Guidance Assumptions 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, a
Slide 8: Guidance Summary
Guidance Summary Currency Impact Increase Non-GAAP Constant Q4 2025 Guidance Quarterly Guidance Included in (Decrease) Y/Y Currency Y/Y (2) Guidance (1) Subscription Revenues $3,420M - $3,430M 19.5% ~150bps tailwind 17.5% - 18% Non-GAAP Operating Margin(3) 30% ~50bps NA NA Current RPO (cRPO) Growth
Slide 9: Comparison to Previously Issued Guidance
Comparison to Previously Issued Guidance $16 $21 $3,299 $12,785 $34 $21 $12,840 $3,263 ($M) Subscription Revenues Y/Y Growth 20% 21.5% 20% 20.5% Q3-25A FY25E Prev. Guidance Midpoint(1) Currency Impact(2) Q3 Performance Actual Results Guidance Change Current Guidance Midpoint (1) Refers to previously
Slide 10: Year-Over-Year Subscription Revenues Growth
Year-Over-Year Subscription Revenues Growth Subscription Revenues (%) 27% 27% 26% 25% 23% 22% 23% 22% 22% 23% 22% 23% 23% 21% 21% 19% 20% 20% Q3-24A Q4-24A Q1-25A Q2-25A Q3-25A FY24A Previous Year Growth Actual Growth Non-GAAP Constant Currency Sub Revenue Growth (1) (1) Non-GAAP subscription revenu
Slide 11: Currency Impact to Year-Over-Year Sub. Revenues
Currency Impact to Year-Over-Year Sub. Revenues Subscription Revenues ($M) $3,031 $3,113 $3,086 $3,299 $3,267 $2,866 $2,859 $3,005 $10,646 $10,639 $2,715 $2,711 $(32) $26 $(27) $(4) $(7) $(7) Q3-24A Q4-24A Q1-25A Q2-25A Q3-25A FY24A Y/Y 23% 22% 21% 21% 19% 20% 22% 22% 23% 23% 22% 20% Growth Actuals
Slide 12: Remaining Performance Obligations (RPO)
Remaining Performance Obligations (RPO) ($B) Current RPO Noncurrent RPO Q3-25 $23.9 $24.3 $22.3 $22.1 Y/Y Growth $19.5 +24% / +23% cc(1) $13.0 $12.9 $12.0 $11.8 Total RPO $10.2 $9.36 $10.27 $10.31 $10.92 $11.35 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 cRPO Y/Y Growth 26% 19.5% 22% 24.5% 21% cRPO cc(1) Y/Y Grow
Slide 13: Customer Cohort Growth
Customer Cohort Growth Annual Growth of Initial ACV 45% 57% 53% 51% 69% 85% 81% 78% 99% 126% 116% 172% 173% 225% 288% (1) (1) As an illustrative example, 2010 customer cohort started with a contract of initial ACV (annual contract value) of $100 and grew to ACV of $4,420 as of Q3-25 and represents a
Slide 14: Expansion of Customer Relationships
Expansion of Customer Relationships ($M) $14.3 $14.6 $14.0 $14.1 $13.4 $13.6 $13.0 $13.1 $12.6 553 535 503 516 469 448 419 432 387 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Number of Customers with $5M+ ACV Avg ACV of Customers with $5M+ ACV Note: Previously disclosed number of customers
Slide 15: Renewal Rate
Renewal Rate 98% 98% 98% 98% (1) 97% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 (1) Excluding the closure of a large US Federal agency, Q3 2025 renewal rate would be 98%. Note: We adjust our Renewal Rate for acquisitions, consolidations and other customer events that cause the merging of two or more accounts occ
Slide 16: Net New ACV Contribution Across Workflows and Products
Net New ACV Contribution Across Workflows and Products (1) Technology Workflows CRM and Industry & Core Business Workflows Creator Workflows & Others 15% 18% 18% 18% 23% 31% 30% 26% 34% 24% 54% 52% 56% 53% 48% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 (1) Historical presentations disclosed net new ACV contribut
Slide 17: GAAP Revenues by Geography
GAAP Revenues by Geography North America EMEA APAC & Other 11% 11% 11% 12% 11% 25% 27% 25% 26% 26% 64% 62% 64% 62% 63% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 © 2025 ServiceNow, Inc. All Rights Reserved. 17 © 2025 ServiceNow, Inc. All Rights Reserved. 17
Slide 18: Headcount by Department
Headcount by Department PS & Other Cost of Sales Sub. Cost of Sales S&M R&D G&A 27,294 28,000 26,293 26,698 25,743 3,268 3,269 3,133 3,231 3,086 8,874 9,203 8,393 8,583 8,640 9,219 9,271 9,295 9,008 9,083 4,351 4,583 4,749 5,003 5,297 905 911 859 878 936 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 © 2025 ServiceN
Slide 19: Non-GAAP Gross Margins
Non-GAAP Gross Margins Non-GAAP Subscription Gross Margin 85.0% 84.5% 85.0% 84.5% 84.5% 83.0% 83.0% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 FY23 FY24 Non-GAAP PS & Other Gross Margin 14.0% 11.0% 7.5% 8.5% 4.0% 9.5% 11.5% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 FY23 FY24 Non-GAAP Total Gross Margin 82.5% 82.0% 82.0% 81.
Slide 20: Non-GAAP Operating and Free Cash Flow Margins
Non-GAAP Operating and Free Cash Flow Margins Non-GAAP Operating Margin 33.5% 31.0% 29.5% 31.0% 29.5% 29.5% 27.5% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 FY23 FY24 Non-GAAP Free Cash Flow Margin 47.5% 48.0% 30.5% 31.5% 17.0% 16.5% 17.5% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 FY23 FY24 Note: All figures are calculated
Slide 21: Non-GAAP Net Income and Diluted EPS
Non-GAAP Net Income and Diluted EPS Non-GAAP Net Income ($M) $2,902 $2,215 $854 $1,010 $775 $769 $846 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 FY23 FY24 Non-GAAP Diluted EPS $13.92 $10.78 $4.04 $4.09 $4.82 $3.72 $3.67 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 FY23 FY24 Note: All figures are calculated on a non-GAAP basis.
Slide 22: GAAP to Non-GAAP Reconciliation and Supplemental Information
GAAP to Non-GAAP Reconciliation and Supplemental Information © 2025 ServiceNow, Inc. All Rights Reserved. 22 © 2025 ServiceNow, Inc. All Rights Reserved. 22
Slide 23: GAAP to Non-GAAP Reconciliation – Other
GAAP to Non-GAAP Reconciliation – Other in millions (except %'s and per share data) Q1'24 Margin Q2'24 Margin Q3'24 Margin Q4'24 Margin 2024 Margin Q1'25 Margin Q2'25 Margin Q3'25 Margin Q4'25E Margin 2025E Margin GAAP Subscription Gross Profit $ 2,082 82.5% $ 2,073 81.5% $ 2,219 81.5% $2,330 81.5%
Slide 24: Supplemental Information
Supplemental Information in millions Q1'24 Q2'24 Q3'24 Q4'24 2024 Q1'25 Q2'25 Q3'25 Stock-based compensation Cost of revenues: Subscription $ 58 $ 62 $ 64 $ 66 $ 250 $ 68 $ 76 $ 78 Professional services and other $ 12 $ 12 $ 11 $ 11 $ 46 $ 11 $ 11 $ 11 Operating expenses: $ - Sales and marketing $ 1
Slide 25: servicenow.
servicenow.