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Dec 31, 2022
ServiceNow Q4 2022 Earnings Report
ServiceNow's Q4 2022 financial results were reported, exceeding expectations for GAAP topline growth and profitability.
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.
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%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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