ServiceNow results surpass expectations

Bill McDermott / ServiceNow president and CEO

ServiceNow has announced a solid set of results for both the fourth quarter and full year ended 31 December 2020.

Q4 saw ServiceNow’s subscription revenues increase 32 percent year-on-year to $1.18m. During the quarter, ServiceNow closed 89 transactions with more than $1m in net new annual contract value (ACV).

The company now has 1093 total customers with more than $1m in ACV, representing 23 percent year‑on‑year growth in customers.

During the quarter, ServiceNow saw continued progress and customer adoption across its IT, employee, and customer workflows, as well as with its AI and machine learning capabilities. Its acquisition of Element AI, which closed in January, brings world-class technical talent to ServiceNow and reinforces its commitment to be the leader in AI-enabled workflows. 

Bill McDermott, ServiceNow president and CEO: “ServiceNow delivered a market leading 2020 and significantly beat expectations across the board. The secular tailwinds of digital transformation, cloud computing, and business model innovation have all intersected at the perfect moment in time. ServiceNow is the platform for digital business, enabling seamless workflows that create the great experiences people deserve. Now, we are focused on managing the world’s greatest workflow challenge: helping convert vaccines into vaccinations. We are changing the world one workflow at a time and are well on our way to becoming the defining enterprise software company of the 21st century.”

Gina Mastantuono, ServiceNow CFO added: “We delivered another fantastic quarter to cap a very strong 2020, ending the year with nearly $9bn in remaining performance obligations. These outstanding results continue to demonstrate ServiceNow’s strong platform and product portfolio, our focus on building deep customer relationships, and commitment to enabling their digital transformations. I’m extremely proud of our team’s performance and their unrelenting execution in a turbulent year. We are well on our way to becoming a $10bn revenue company. I’m excited about the opportunities ahead of us in 2021.”