Q4 2024 ServiceNow Inc Earnings Call Transcript
Key Points
- ServiceNow Inc (NOW) reported a strong Q4 2024, exceeding expectations with a subscription revenue growth of 21% and CRPO growth of 22%.
- The company has a robust balance sheet with $10 billion in cash and investments, supporting its growth initiatives.
- ServiceNow Inc (NOW) is experiencing significant growth in its AI offerings, with a 150% quarter-over-quarter increase in deals for its Pro Plus AI solutions.
- The company continues to expand its enterprise platform, securing 19 deals greater than $5 million in net new ACV and landing its largest new logo deal ever.
- ServiceNow Inc (NOW) is recognized as a leader in the 2024 Gartner Magic Quadrant for CRM Customer Engagement Center and the Forrester Wave for task-centric automation software.
- The company anticipates a more back-end weighted deal linearity in 2025 for federal business due to the change in the presidential administration.
- ServiceNow Inc (NOW) is facing FX headwinds, impacting its subscription revenue and CRPO growth outlook.
- The transition to a hybrid consumption and subscription model may take time to build up on the consumption side, potentially affecting near-term revenue growth.
- Despite strong growth, the company acknowledges the need for continued innovation and investment in AI to maintain its competitive edge.
- There is a risk associated with the rapid commoditization of AI models, which could impact ServiceNow Inc (NOW)'s differentiation in the market.
Ladies and gentlemen, thank you for standing by. My name is Abby, and I'll be your conference operator today. At this time, I would like to welcome everyone to the ServiceNow fourth-quarter 2024 earnings conference call. (Operator Instructions)
And I would now like to turn the conference over to Mr. Darren Yip, Group Vice President of Investor Relations and Market Insights. You may begin.
Good afternoon and thank you for joining ServiceNow's fourth-quarter 2024 earnings conference call. Joining me are Bill McDermott, our Chairman and Chief Executive Officer; and Gina Mastantuono, our President and Chief Financial Officer.
During today's call, we will review our fourth-quarter 2024 results and discuss our guidance for the first-quarter and full-year 2025. Before we get started, we want to emphasize that the information discussed on this call, including our guidance, is based on information as of today and contains forward-looking statements that involve risks,
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