ServiceNow (NOW) Q1 FY25 earnings call

Earnings call· Mar 2025 (Q1 FY25)· Information Technology· Apr 23, 2025

Source: earnings call transcript

ServiceNow delivered a strong Q1 FY25, exceeding top-line and profitability guidance, driven by robust AI adoption and strategic relevance. The company raised its full-year outlook, reflecting continued demand for its platform as enterprises prioritize business transformation and cost efficiencies amidst a dynamic macro environment, while maintaining a prudent stance on potential geopolitical risks.

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NOW operating KPIs by quarter

NOW operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Mar 2025 Q1 FY25	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Remaining performance obligation (RPO)	~$22.1B RPO ended the quarter at approximately $22.1 billion, representing 25.5% year-over-year constant currency growth. Source: earnings call transcript	~$23.9B RPO ended the quarter at approximately $23.9 billion, representing 25.5% year-over-year constant currency growth. Source: earnings call transcript	~$24.3B RPO ended the quarter at approximately $24.3 billion, representing 23% year-over-year constant currency growth. Source: earnings call transcript	~$28.2B RPO ended the quarter at approximately $28.2 billion, representing 22.5% year-over-year constant currency growth. Source: earnings call transcript	~$27.7B RPO ended the quarter at approximately $27.7 billion, representing 23.5% year-over-year constant currency growth. Source: earnings call transcript	~$29B RPO ended the quarter at approximately $29 billion, representing 22% year-over-year constant currency growth with an increase in average customer contract duration. Source: earnings call transcript	—
Remaining performance obligation (RPO) Current	$10.31B Current RPO was $10.31 billion, representing 22% year-over-year constant currency growth of 150 basis point beat versus our guidance. Source: earnings call transcript	$10.92B Current RPO was $10.92 billion, representing 21.5% year-over-year constant currency growth, a 200 basis point beat versus our guidance. Source: earnings call transcript	$11.35B Current RPO was $11.35 billion, representing 20.5% year-over-year constant currency growth, a 250 basis point beat versus our guidance. Source: earnings call transcript	$12.85B Current RPO was $12.85 billion representing 21% year-over-year constant currency growth, a 200 basis point beat versus our guidance. Source: earnings call transcript	$12.64B Current RPO was $12.64 billion, representing 21% year-over-year constant currency growth, a 100 basis point beat versus our guidance. Source: earnings call transcript	$13.2B Current RPO was $13.2 billion, representing 21.5% year-over-year constant currency growth. Source: earnings call transcript	+4.4%
Renewal rate	98% Our renewal rate remained best-in-class 98%, underscoring the consistent value that ServiceNow delivers to our customers. Source: earnings call transcript	98% Once again, we achieved a robust 98% renewal rate showcasing ServiceNow strategic importance as the AI platform for business transformation. Source: earnings call transcript	97% Our renewal rate remained a strong 97% and an even more robust 98% when excluding the closure of a large federal agency. Source: earnings call transcript	98% We achieved a robust 98% renewal rate in Q4, underscoring the importance and value the customers place in the ServiceNow AI platform because 244 deals greater than $1 million in net new ACV in the quarter, including 9 with new logos. Source: earnings call transcript	97% Our renewal rate, inclusive of Moveworks was a strong 97% in the quarter. Source: earnings call transcript	98% Our renewal rate was a best-in-class 98% in Q2, underscoring the durability of our customer relationships. Source: earnings call transcript	+1 pt
Customers above an annual spend threshold >$5M ACV	508 The strategic importance of the Now Platform continues to grow with 508 customers now generating over $5 million in ACV. Source: earnings call transcript	528 We ended Q2 with 528 customers generating over $5 million in ACV. Source: earnings call transcript	553 We ended Q3 with 553 customers generating over $5 million in ACV. Source: earnings call transcript	603 We accelerated net new customer adds in 2025 to end the year with over 8,800 customers including 603 generating over $5 million in ACV. Source: earnings call transcript	630 We ended Q1 with 630 customers generating over $5 million in ACV. Source: earnings call transcript	658 We ended the quarter with 658 customers generating over $5 million in ACV with 32 more customers crossing the $20 million threshold since last year. Source: earnings call transcript	+4.4%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

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