ServiceNow Q4 2022 Earnings Report
Key Takeaways
ServiceNow reported strong Q4 2022 results, exceeding guidance with subscription revenues of $1.86 billion, representing 22% year-over-year growth (27.5% adjusted for constant currency). Total revenues reached $1.94 billion, a 20% increase year-over-year (25.5% adjusted for constant currency). The company's performance was driven by strong net expansion and NNACV growth from new logos.
Subscription revenues reached $1.86 billion, up 22% year-over-year (27.5% adjusted for constant currency).
Total revenues amounted to $1.94 billion, reflecting a 20% increase year-over-year (25.5% adjusted for constant currency).
Current remaining performance obligations (cRPO) stood at $6.94 billion, a 22% increase year-over-year (25.5% adjusted for constant currency).
Net new annual contract value (NNACV) contribution to cRPO outperformed expectations, driven by net expansion and over 30% NNACV growth from new logos.
ServiceNow
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ServiceNow Revenue by Segment
Forward Guidance
ServiceNow provided guidance for Q1 2023 and full-year 2023, including expectations for subscription revenue growth and operating margin.
Positive Outlook
- Q1 2023 subscription revenues are expected to be between $1.99 billion and $2.00 billion, representing a year-over-year growth of 22% - 22.5% (25% - 25.5% adjusted for constant currency).
- Q1 2023 cRPO growth rate is projected at 21% (24% adjusted for constant currency).
- Q1 2023 operating margin is expected to be 24%.
- Full-year 2023 subscription revenues are projected to be between $8.44 billion and $8.50 billion, representing a growth of 22.5% - 23.5%.
- Full-year 2023 subscription gross profit margin is expected to be 84%.