Summary by Moomoo AI
ServiceNow reported strong Q4 2024 results with subscription revenues reaching $2.87 billion, up 21% YoY. Total revenues increased 21% YoY to $2.96 billion, while non-GAAP operating margin reached 29.5%. The company's current remaining performance obligations (cRPO) grew 19% YoY to $10.27 billion, with nearly 500 customers now spending over $5 million annually.The Board of Directors authorized an additional $3 billion for share repurchases, supplementing the remaining $266 million from the original $1.5 billion program announced in May 2023. The company's Q4 performance was driven by strong GenAI adoption, with Now Assist service desk deals growing over 150% QoQ.Looking ahead to 2025, ServiceNow expects subscription revenue growth of 19.5-20% in constant currency. The company plans to shift its business model to include consumption-based monetization across AI and data solutions, with new AI Agents to be included in Pro Plus and Enterprise Plus SKUs. Free cash flow margin is projected to expand to 32% for full-year 2025.
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