Q1 2025 ServiceNow Inc Earnings Call Transcript
Key Points
- ServiceNow Inc (NOW) reported its biggest Q1 ever for net new ACV, with subscription revenue growing 20% year over year in constant currency.
- The company achieved an operating margin of 31%, which was approximately 100 basis points above their guidance.
- ServiceNow Inc (NOW) saw a significant increase in large deals, with 72 deals greater than a million in net new ACV, up from 63 a year ago.
- The company reported strong growth in its AI initiatives, with the number of Pro Plus deals more than quadrupling year over year.
- ServiceNow Inc (NOW) raised its guidance for the full year 2025, reflecting strong demand and a healthy pipeline.
- There is uncertainty in the global economy, which could impact future performance and decision-making among enterprise customers.
- The company is facing potential risks from geopolitical factors, including tariffs and trade negotiations.
- ServiceNow Inc (NOW) acknowledged the challenges in the public sector, with federal agencies navigating changes from tightening budgets.
- Despite strong performance, the company is taking a conservative approach to its full-year outlook due to potential macroeconomic headwinds.
- There is a risk of deal elongations or delays in decision-making among enterprise customers due to the uncertain environment.
Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the ServiceNow first-quarter 2025 earnings conference call. (Operator Instructions)
Thank you. And I would now like to turn the conference over to Darren Yip, Senior Vice President of Investor Relations and Market Insight. Darren, you may begin.
Good afternoon, and thank you for joining ServiceNow's first-quarter 2025 earnings conference call. Joining me are Bill McDermott, Chairman and Chief Executive Officer; Gina Mastantuono, our President and Chief Financial Officer; and Amit Zavery, President, Chief Product Officer, and Chief Operating Officer. During today's call, we will review our first-quarter 2025 results and discuss our guidance for the second-quarter and full-year 2025.
Before we get started, we want to emphasize that the information discussed on this call, including our guidance,
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