AUS
NZ
UK
CA
USA
IND
Highlights
- Subscription Revenues grew by 21% year-over-year to $2.87 billion in Q4 2024.
- Total Revenues reached $2.96 billion, reflecting a 21% increase compared to Q4 2023.
- Remaining Performance Obligations climbed to $22.3 billion, up 23% year-over-year, indicating strong future revenue visibility.
ServiceNow (NYSE:NOW), a leading AI platform for business transformation, announced strong financial results for its fourth quarter ending December 31, 2024. The company delivered solid growth across all key metrics, including subscription revenues, total revenues, and remaining performance obligations, signaling continued strength in its business model.
Q4 2024 Financial Performance
ServiceNow’s subscription revenues for Q4 2024 totaled $2.87 billion, reflecting a robust 21% year-over-year growth and a corresponding 21% increase in constant currency. This growth underscores the company’s ability to continue expanding its subscription-based offerings, a key revenue driver for the business.
The company’s total revenues reached $2.96 billion, marking a 21% increase compared to the same quarter last year, with constant currency growth also coming in at 21%. This solid revenue performance highlights the growing adoption of ServiceNow’s AI-powered business transformation solutions across industries.
Performance Obligations and Customer Growth
A key indicator of ServiceNow’s future revenue strength is its remaining performance obligations (RPO), which represents the value of contracted revenue that will be recognized in the future. The company reported current remaining performance obligations (cRPO) of $10.27 billion as of Q4 2024, representing a 19% year-over-year growth and a 22% increase in constant currency. This indicates a strong pipeline of future business to be realized over the next 12 months.
ServiceNow’s total remaining performance obligations reached $22.3 billion, up 23% year-over-year, with constant currency growth of 26%. This growth highlights the company’s ability to secure long-term contracts, bolstering its future revenue visibility and stability.
ServiceNow also reported continued customer growth, with 2,109 customers now holding more than $1 million in annual contract value (ACV), reflecting a 12% increase in customers compared to the previous year. Notably, nearly 500 customers now have over $5 million in ACV, representing a 21% year-over-year growth, demonstrating the company’s success in attracting larger enterprise customers.
Share Repurchase Program
In addition to its strong financial performance, ServiceNow’s Board of Directors authorized a further $3 billion in share repurchases under its ongoing stock repurchase program. The primary goal of this program is to manage the impact of dilution, providing additional value to shareholders.
Looking Ahead
ServiceNow’s impressive performance in Q4 2024 sets the stage for a strong 2025. The continued growth in subscription revenues, along with robust increases in performance obligations and customer acquisition, reflects the company’s position as a leader in the AI-driven business transformation space.
