Financial Data and Key Metrics - Subscription revenue grew 25% year-over-year in constant currency, exceeding the high-end of guidance by 100 basis points [119] - Current RPO grew 24% year-over-year in constant currency, beating guidance by 150 basis points [119] - Operating margin was 25%, 200 basis points above guidance [132] - Free cash flow margin was 21% [132] - 70 deals greater than 1millioninnetnewACV,up301 million [90] - Employee Workflows were in 14 of the top 20 deals, with seven deals over 1million[90]−CreatorWorkflowswerein18ofthetop20deals,witheightdealsover1 million [90] - Security and Risk combined for 17 of the top 20 deals, with eight deals over 1million[90]MarketDataandKeyMetrics−Americasisextremelystrong,Europeisstrongdespitegeopoliticalchallenges,andAsiaisperformingwell,especiallyinJapan[5]−Transportationandlogisticsledindustrygrowthwithover807 trillion [111] - The company is raising its full-year subscription revenue outlook by 95millionandoperatingmargintargetto2651 5 billion of common stock to be purchased [105] - ServiceNow was recognized for AIOps, app engine, and cloud observability by prominent industry analysts [101] Q&A Summary Question: How is the trend in business confidence and willingness to invest? [3] - The company is growing well across all geographies, with Americas being extremely strong, Europe strong despite challenges, and Asia performing well, especially in Japan [5] Question: Can you comment on the strength of ITSM Pro? [8] - ITSM Pro had its best Q2 ever, continuing a trend of strong performance, with 10milliondealsincludingoneover8 million [8] Question: How do you see Generative AI impacting customer adoption and revenue? [125] - Generative AI is expected to drive significant value for customers, with new Pro Plus SKUs launching in September and potential revenue contributions expected in the future [127][136] Question: What is driving the strength in Customer Workflows? [80] - Customer Workflows had a strong quarter, driven by tying front office to mid office and back office workflows, with large brands showcasing their use of the solution [78] Question: How is the FINS vertical performing? [59] - The FINS vertical continues to show strength, with measurable progress in the banking sector across the US, Canada, and Europe, and a strong pipeline for the second half [74] Question: How is the channel strategy progressing? [61] - The channel strategy is gaining momentum, with technology partners recognizing the power of combining their solutions with ServiceNow's workflow automation [63]
ServiceNow(NOW)2023-07-27 01:09