ServiceNow Q2 2023 Earnings Report
Key Takeaways
ServiceNow reported strong Q2 2023 financial results, exceeding guidance for topline growth and profitability. Subscription revenues reached $2,075 million, representing 25% year-over-year growth. Total revenues amounted to $2,150 million, a 23% increase year-over-year. The company is raising its 2023 subscription revenues and operating margin guidance.
ServiceNow exceeded guidance across all Q2 2023 topline growth and profitability metrics.
Subscription revenues were $2,075 million in Q2 2023, representing 25% year-over-year growth.
Total revenues reached $2,150 million in Q2 2023, a 23% increase year-over-year.
Current remaining performance obligations were $7.20 billion as of Q2 2023, representing 25% year-over-year growth.
ServiceNow
ServiceNow
ServiceNow Revenue by Segment
Forward Guidance
ServiceNow provided guidance for the third quarter and full year 2023, including subscription revenues and operating margin targets.
Positive Outlook
- Third quarter 2023 subscription revenues are expected to be $2,185 - $2,195 million, representing 25.5% - 26% year-over-year growth.
- Third quarter 2023 income from operations margin is expected to be 27%.
- Full-year 2023 subscription revenues are projected to be $8,580 - $8,600 million, representing 24.5% - 25% year-over-year growth.
- Full-year 2023 subscription gross profit margin is expected to be 84%.
- Full-year 2023 income from operations margin is expected to be 26.5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income