ServiceNow Q3 2024 Earnings Report
Key Takeaways
ServiceNow reported strong Q3 2024 results, exceeding guidance for topline growth and profitability. Subscription revenues reached $2,715 million, representing a 23% year-over-year growth. Total revenues amounted to $2,797 million, a 22% increase year-over-year. The company raised its full-year topline guidance due to these robust results.
Subscription revenues grew by 23% year-over-year, reaching $2,715 million.
Total revenues increased by 22% year-over-year to $2,797 million.
Current remaining performance obligations (cRPO) grew by 26% year-over-year to $9.36 billion.
ServiceNow now has 2,020 customers with more than $1 million in annual contract value (ACV), representing 14% year-over-year growth in customers.
ServiceNow
ServiceNow
ServiceNow Revenue by Segment
Forward Guidance
ServiceNow provided guidance for the fourth quarter and full year 2024. They expect subscription revenues of $2,875 - $2,880 million for Q4, representing a 21.5% - 22% year-over-year growth. For the full year, they anticipate subscription revenues of $10,655 - $10,660 million, a 23% year-over-year increase.
Positive Outlook
- Subscription revenues are projected to grow by 21.5% - 22% year-over-year in Q4 2024.
- Full-year subscription revenues are expected to increase by 23% year-over-year.
- Non-GAAP operating margin is guided at 29% for Q4 2024.
- Full-year non-GAAP subscription gross profit margin is expected to be 84.5%.
- Full-year non-GAAP free cash flow margin is projected at 31%.