ServiceNow Inc (NOW, Financial), the leading digital workflow company, announced its financial results for the third quarter ended September 30, 2023, on October 25, 2023. The company reported subscription revenues of $2,216 million in Q3 2023, representing a 27% year-over-year growth and 24.5% in constant currency.
Financial Performance
ServiceNow Inc (NOW, Financial) reported total revenues of $2,288 million in Q3 2023, representing a 25% year-over-year growth, 22.5% in constant currency. The company's current remaining performance obligations as of Q3 2023 were $7.43 billion, representing a 27% year-over-year growth, 24% in constant currency. The company also reported 83 transactions over $1 million in net new ACV in Q3 2023, up 20% year-over-year.
Company's Growth and Innovation
ServiceNow Inc (NOW, Financial) has been focusing on innovation and growth, releasing more than 5,000 new capabilities this year, including generative AI for the use cases that matter most to their customers. The company's robust results show that the world's best-run enterprises are choosing ServiceNow to drive their digital transformation roadmaps. With the capabilities unlocked by generative AI, the window of opportunity is even more expansive, positioning the company well to continue delivering a strong balance of growth and profitability.
Financial Tables Summary
The company's GAAP results for the third quarter of 2023 showed subscription revenues of $2,216 million, a 27% year-over-year growth. Professional services and other revenues were $72 million, a 19% decrease year-over-year. Total revenues were $2,288 million, a 25% increase year-over-year. The company's non-GAAP results for the same period showed subscription revenues of $2,173 million, a 24.5% year-over-year growth, and total revenues of $2,243 million, a 22.5% increase year-over-year.
Financial Outlook
ServiceNow Inc (NOW, Financial) provided guidance for the fourth quarter of 2023, expecting subscription revenues of $2,320 - $2,325 million, representing a 24.5% - 25% year-over-year growth. The company also expects a 20.5% year-over-year growth in cRPO. For the full-year 2023, the company expects subscription revenues of $8,635 - $8,640 million, representing a 25.5% year-over-year growth.
The company's strong performance in Q3 2023 and its positive outlook for the fourth quarter and full-year 2023 demonstrate its commitment to growth and innovation, positioning it well for continued success in the future.
Explore the complete 8-K earnings release (here) from ServiceNow Inc for further details.
