ServiceNow impresses with strong Q1 2024 financial results

ServiceNow, a provider of digital workflows, has reported strong financial results for the first quarter of 2024, outperforming previous guidance across all top-line and profitability metrics. The news underscores the company's solid momentum in the early months of 2024, demonstrating a significant scale in digital transformation on a single platform.

The Q1 2024 highlights include subscription revenues of USD $2.523 billion, indicating a 24.5% year-over-year growth in constant currency. Current remaining performance obligations (cRPO) reached USD $8.45 billion, showing 21% year-over-year growth in constant currency. Furthermore, the company's Q1 non-GAAP operating margin was over 30%, driven by the timing of marketing spend, opex efficiencies, and top-line outperformance.

During Q1, ServiceNow also sealed eight deals over USD $5 million in NNACV, a 100% year-over-year increase. Additionally, the company completed four deals over USD $10 million in NNACV, up 300% year-over-year. The company also reported an industry-leading renewal rate of 98%.

Bill McDermott, Chairman and CEO of ServiceNow, said, "ServiceNow is off to a fast start with an outstanding first quarter. As leaders seek significant productivity improvements, ServiceNow has first mover advantage with years of investment in AI technology and talent. Our GenAI offerings are the fastest selling in the company's history. As we engineer Now Assist AI into every business workflow across every enterprise, we are giving people the power to know more, care more, and do more."

ServiceNow CFO Gina Mastantuono added that the company has delivered an "exceptional quarter of outperformance across all of our top-line and profitability guidance metrics." She noted that the firm provides enterprises with the necessary platform to reinvent their business models, which is evident in their results.

Looking to the future, the company has raised the midpoint of its 2024 subscription revenues guidance range. Among its recent business highlights, ServiceNow launched its Washington, D.C. Platform release, which delivers new innovations such as Now Assist for ITOM AIOps and Impact AI Accelerators. The company has also announced a USD $500 million investment commitment in Saudi Arabia to support business transformation, job creation, and digital skills development. ServiceNow was also recognised as a leader in several industry reports and listed among Glassdoor's Best Places to Work 2024.

ServiceNow's strong financial results for the first quarter of 2024 highlight its continued success in driving digital transformation and delivering value to its customers. With impressive growth in subscription revenues, significant deals closed, and industry recognition, ServiceNow remains at the forefront of innovation in digital workflows. As the company expands its offerings and invests in key regions like Saudi Arabia, it is well-positioned to sustain its momentum and further solidify its position as a leader in the industry.