Servicenow, Inc. · NYSE:NOW
Servicenow — Q4 2024 Earnings Presentation
26 slides from Servicenow's earnings presentation, Jan 29, 2025
Slide 1: Investor Presentation Fourth Quarter 2024
Investor Presentation Fourth Quarter 2024
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: Technology, Employee, Customer and Creator Workflows
Technology Employee Customer and Creator Workflows Workflows Industry Workflows Workflows Build connected Accelerate digital Drive employee Deliver frictionless cross-enterprise transformation with productivity, retention, customer experiences workflow apps fast resilient, cost-efficient, and growth
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 Our aspiration is to be the innovation to help customers customers(1) include over 85% of defining enterprise software transform organizations across the Fortune 500. They all rely on company o
Slide 6: Q4-24 Financial Highlights
Q4-24 Financial Highlights Increase Non-GAAP Constant Q4 2024 Results Quarterly Results Currency Impact(1) (Decrease) Y/Y Currency Y/Y(2) Subscription Revenues $2,866M 21% ~Flat 21% Current RPO (cRPO) $10.27B 19% ~250bps headwind 22% Remaining Performance Obligations (RPO) $22.3B 23% ~300bps headwin
Slide 7: FY24 Financial Highlights
FY24 Financial Highlights Increase Non-GAAP Constant FY 2024 Results Annual Results Currency Impact(1) (Decrease) Y/Y Currency Y/Y(2) Subscription Revenues $10,646M 23% ~Flat 22.5% Current RPO (cRPO) $10.27B 19% ~250bps headwind 22% Remaining Performance Obligations (RPO) $22.3B 23% ~300bps headwind
Slide 8: 2025 Guidance Assumptions
2025 Guidance Assumptions Since September 30, 2024, ServiceNow has seen an incremental strengthening of the U.S. dollar, resulting in a foreign exchange (“FX”) headwind of approximately $175 million for 2025 subscription revenues, which includes $40 million in Q1 2025, and $205 million for Q1 2025 c
Slide 9: Guidance Summary
Guidance Summary Currency Impact Increase Non-GAAP Constant Q1 2025 Guidance Quarterly Guidance Included in (Decrease) Y/Y Currency Y/Y(2) Guidance(1) Subscription Revenues $2,995M - $3,000M 18.5% - 19% ~100bps headwind 19.5% - 20% Non-GAAP Operating Margin(3) 30% ~(50bps) NA NA Current RPO (cRPO) G
Slide 10: Comparison to Previously Issued Guidance
Comparison to Previously Issued Guidance $10,658 $11 $10,646 $2,878 $11 $2,866 $(23) $(23) ($M) Subscription Revenues Y/Y Growth 20.5% 21% 22.5% 22.5% Q4-24A FY24A Prev. Guidance Midpoint(1) Currency Impact(2) Q4 Performance Actual Results (1) Refers to previously issued financial guidance dated 10/
Slide 11: Year-Over-Year Subscription Revenues Growth
Year-Over-Year Subscription Revenues Growth Subscription Revenues (%) 27% 27% 27% 26% 25% 24% 25% 24% 25% 22% 23% 23% 23% 22% 23% 23% 21% 21% Q4-23A Q1-24A Q2-24A Q3-24A Q4-24A FY24A Previous Year Growth Actual Growth Non-GAAP Constant Currency Sub Revenue Growth (1) (1) Non-GAAP subscription revenu
Slide 12: Currency Impact to Year-Over-Year Sub. Revenues
Currency Impact to Year-Over-Year Sub. Revenues Subscription Revenues ($M) $2,523 $2,517 $2,542 $2,552 $2,715 $2,711 $2,866 $2,859 $10,646 $10,639 … $(6) $10 $(4) $(7) $(7) Q1-24A Q2-24A Q3-24A Q4-24A FY24A Y/Y Growth 25% 24% 23% 23% 23% 22% 21% 21% 23% 23% Actuals Currency Impact Non-GAAP Constant
Slide 13: Remaining Performance Obligations (RPO)
Remaining Performance Obligations (RPO) ($B) Current RPO Noncurrent RPO Q4-24 $22.3 Y/Y $18.6 $19.5 Growth $18.0 $17.7 +23% / +26% cc(1) $12.0 $10.2 Total RPO $9.4 $9.2 $9.8 $8.60 $8.45 $8.78 $9.36 $10.27 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 cRPO Y/Y Growth 24% 21% 22% 26% 19% cRPO cc(1) Y/Y 23% 21% 22.5%
Slide 14: Customer Cohort Growth
Customer Cohort Growth Annual Growth of Initial ACV 56% 54% 2024 55% 2023 70% 2022 85% 78% 2021 2020 75% 2019 104% 2018 117% 2017 2016 116% 2015 2014 162% 2013 2012 172% 2011 2010 220% 244% (1) (1) As an illustrative example, 2010 customer cohort started with a contract of initial ACV (annual contra
Slide 15: Expansion of Customer Relationships
Expansion of Customer Relationships ($M) $5.0 $4.8 $4.6 $4.7 $4.5 $4.3 $4.4 2,109 $4.2 $4.2 2,018 1,922 1,971 1,885 1,771 1,666 1,708 1,626 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Number of Customers with $1M+ ACV Avg ACV of Customers with $1M+ ACV Note: Previously disclosed number of
Slide 16: Renewal Rate
Renewal Rate 99% 98% 98% 98% 98% Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Note: We adjust our Renewal Rate for acquisitions, consolidations and other customer events that cause the merging of two or more accounts occurring at the time of renewal. © 2025 ServiceNow, Inc. All Rights Reserved. 16
Slide 17: Net New ACV Contribution Across Workflows and Products
Net New ACV Contribution Across Workflows and Products (1) Technology Workflows Customer & Employee Workflows Creator Workflows & Others 16% 18% 17% 15% 18% 29% 30% 29% 31% 30% 55% 52% 54% 54% 52% Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 (1) Historical presentations disclosed net new ACV contribution across pr
Slide 18: GAAP Revenues by Geography
GAAP Revenues by Geography North America EMEA APAC & Other 11% 11% 12% 11% 11% 26% 26% 25% 25% 27% 63% 63% 63% 64% 62% Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 © 2025 ServiceNow, Inc. All Rights Reserved. 18
Slide 19: Headcount by Department
Headcount by Department PS & Other Cost of Sales Sub. Cost of Sales S&M R&D G&A 25,743 26,293 24,469 22,668 23,362 3,086 3,133 2,992 2,854 2,886 8,393 8,583 7,912 7,211 7,520 8,585 9,008 9,083 7,966 8,209 3,622 3,853 4,063 4,351 4,583 1,015 894 917 905 911 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 © 2025 Servic
Slide 20: Non-GAAP Gross Margins
Non-GAAP Gross Margins Non-GAAP Subscription Gross Margin 84.5% 85.5% 85.0% 85.0% 84.5% 85.0% 84.5% Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 FY23 FY24 Non-GAAP PS & Other Gross Margin 15.0% 15.5% 15.5% 9.5% 11.5% 7.5% 8.5% Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 FY23 FY24 Non-GAAP Total Gross Margin 82.5% 83.5% 82.5% 82
Slide 21: Non-GAAP Operating and Free Cash Flow Margins
Non-GAAP Operating and Free Cash Flow Margins Non-GAAP Operating Margin 29.5% 30.5% 31.0% 29.5% 29.5% 27.5% 27.5% Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 FY23 FY24 Non-GAAP Free Cash Flow Margin 55.0% 47.0% 47.5% 30.5% 31.5% 17.0% 13.5% Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 FY23 FY24 Note: All figures are calculated
Slide 22: Non-GAAP Net Income and Diluted EPS
Non-GAAP Net Income and Diluted EPS Non-GAAP Net Income ($M) $2,902 $2,215 $643 $707 $651 $775 $769 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 FY23 FY24 Non-GAAP Diluted EPS $13.92 $10.78 $3.11 $3.41 $3.13 $3.72 $3.67 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 FY23 FY24 Note: All figures are calculated on a non-GAAP basis. S
Slide 23: GAAP to Non-GAAP Reconciliation and Supplemental Information
GAAP to Non-GAAP Reconciliation and Supplemental Information © 2025 ServiceNow, Inc. All Rights Reserved. 23
Slide 24: GAAP to Non-GAAP Reconciliation – Other
GAAP to Non-GAAP Reconciliation – Other © 2025 ServiceNow, Inc. All Rights Reserved. 24 Note: Numbers rounded for presentation purposes and may not foot.
Slide 25: Supplemental Information
Supplemental Information Note: Numbers rounded for presentation purposes and may not foot. © 2025 ServiceNow, Inc. All Rights Reserved. 25
Slide 26: servicenow.
servicenow.