ServiceNow reports $1.4bn in subscription revenue

ServiceNow has announced financial results for Q3 ended 30 September 2021, revealing a 31 percent year-on-year increase in subscription revenue to $1.4bn.

ServiceNow also reported current remaining performance obligations of $5bn, representing 32 percent year‑on‑year growth. The company now has 1,266 total customers with more than $1m in annual contract value, representing 25 percent year‑on‑year growth in customers.

During the quarter, ServiceNow delivered the Now Platform Rome release, deepened its strategic partnership with Microsoft to integrate Employee Centre directly with Teams, and completed the acquisitions of Swarm64, a leader in database performance and scale, and Mapwize, an indoor‑mapping and wayfinding company. ServiceNow also recently announced a strategic partnership with Celonis to help companies maximise the impact and return on their digital transformation investments.

Bill McDermott, ServiceNow president and CEO, said: “We reported another significant beat and raise quarter in Q3. Leaders recognise their technology architecture is their business architecture. As this digital transformation market is accelerating, ServiceNow’s platform is creating unmatched customer and employee experiences. We remain hungry and humble in our pursuit of becoming the defining enterprise software company of the 21st century. Our focus is on value creation for our stakeholders by making the world work better for everyone.”

Gina Mastantuono, ServiceNow CFO added: “Q3 was another fantastic quarter with continued outperformance across all of our growth and profitability guidance metrics. The consistency of our results exemplifies the strength of our product portfolio and the team’s focus on building deep customer relationships. We are well positioned as the workflow standard on our journey to becoming a $15+bn revenue company.”

 

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