Dec 31, 2020

ServiceNow Q4 2020 Earnings Report

ServiceNow's Q4 2020 earnings exceeded expectations, driven by strong subscription revenue growth and customer adoption across its IT, Employee, and Customer workflows.

Key Takeaways

ServiceNow reported strong Q4 2020 results, with subscription revenues growing 32% year-over-year. The company closed 89 transactions with more than $1 million in net new ACV and now has 1,093 total customers with more than $1 million in ACV. ServiceNow beat expectations and is focused on becoming the defining enterprise software company of the 21st century.

Subscription revenues reached $1,184 million, a 32% increase year-over-year.

Subscription billings totaled $1,828 million, reflecting a 41% year-over-year growth.

Closed 89 transactions with more than $1 million in net new annual contract value (ACV).

The company now has 1,093 total customers with more than $1 million in ACV, representing 23% year-over-year growth in customers.

Total Revenue
$1.25B
Previous year: $952M
+31.3%
EPS
$1.17
Previous year: $0.96
+21.9%
Customers with >$1M ACV
1.09K
Previous year: 886
+23.4%
Gross Profit
$971M
Previous year: $740M
+31.2%
Cash and Equivalents
$1.68B
Previous year: $776M
+116.1%
Free Cash Flow
$552M
Previous year: $342M
+61.2%
Total Assets
$8.72B
Previous year: $6.02B
+44.7%

ServiceNow

ServiceNow

ServiceNow Revenue by Segment

Forward Guidance

ServiceNow will provide forward-looking guidance in connection with this quarterly announcement on its earnings conference call and webcast, and it will introduce current remaining performance obligations (“cRPO”) as a new guidance metric for Q1 2021.

Revenue & Expenses

Visualization of income flow from segment revenue to net income