ServiceNow reports outstanding Q1 2022 results
ServiceNow has reported its results for the first quarter of 2022, and they are once again impressive. The company exceeded the high end of guidance across all Q1 2022 metrics, with subscription revenues reaching USD $1,631 million in Q1, which represents 26% year-over-year growth, or 29% adjusted for constant currency.
“ServiceNow delivered another outstanding performance that beat expectations across the board,” said ServiceNow President and CEO Bill McDermott. “We are in a sustained demand environment. Companies are investing with a sense of urgency in technologies that get them to the right outcomes, fast. It’s very clear that businesses can no longer revert to the ‘status quo.’ We’re now in a tech-to-compete world. The ServiceNow Platform is enabling employees, customers, and citizen developers with the experiences they love.”
ServiceNow had total revenues of USD $1,722 million in Q1 2022, which represents 27% year-over-year growth. As of March 31, 2022, the Santa Clara, California-based company also had current remaining performance obligations (cRPO), contract revenue that will be recognized as revenue in the next 12 months, of $5.69 billion. The company also closed 52 transactions with more than $1 million in net new annual contract value (NNACV), which is a very impressive 41% year-over-year growth.
“Q1 was another fantastic quarter of execution. NNACV growth accelerated year-over-year, driving the fastest Q1 growth we’ve seen since 2018,” said ServiceNow CFO Gina Mastantuono. “While enterprises are navigating a complex macro environment, our ability to continue delivering strong results exemplifies the resiliency of our business and the mission-critical nature of the Now Platform.”
ServiceNow saw a number of positive developments in Q1, including the release of the San Diego release, which helps companies accelerate productivity and digital transformation with modern design and expanded hyper-automation tools. Its ServiceNow National Security Cloud offering obtained a U.S. Department of Defense Impact Level 5 provisional authorization, which expands the company’s growing portfolio of services tailored for the U.S. public sector.
Q1 also saw ServiceNow take a major step in its mission to extend Now Platform capabilities beyond observability with the launch of Lightstep Incident Response, a move that followed its acquisition of Lightstep, Inc. in 2021.
ServiceNow is also opening a new Center of Excellence for Accessibility, which will create more equitable experiences for ServiceNow employees and customers. It also recently released its annual Diversity, Equity and Inclusion and Global Impact Reports, which show strong progress, a refined strategy and new leadership dedicated to making meaningful and lasting change.
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