ServiceNow Q2 2025 Financial Highlights

    ServiceNow Q2 2025 Financial Highlights

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Second Quarter 2025
    1/25

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© 2025 ServiceNow, Inc. All Rights Reserved. 2
© 2025 ServiceNow, Inc. All Rights Reserved.
This presentation contains “forward‐looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. Forward‐looking 
statements include information concerning our possible or assumed strategy, future operations, financing plans, operating model, financial position, future revenues, projected costs, 
competitive position, industry environment, potential growth opportunities, potential market opportunities, plans and objectives of management, the effects of competition on our business and 
customer trends.
Forward‐looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates,” “believes,” “could,” “seeks,” “estimates” (including, without 
limitation, financial estimates denoted with an “E,” such as FY25E), “targets,” “guidance,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “prospects,” “projects,” “should,” “will,” 
“would” or similar expressions and the negatives of those terms, although not all forward‐looking statements contain these identifying words.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from 
any future results, performance or achievements expressed or implied by the forward-looking statements. Additionally, these forward-looking statements, particularly our guidance, involve 
risks, uncertainties and assumptions based on information available to us as of July 23, 2025, including those related to our future financial performance, global economic conditions and 
demand for digital transformation. Many of these assumptions relate to matters that are beyond our control and changing rapidly, including, but not limited to, fluctuations in the value of foreign 
currencies relative to the U.S. Dollar; fluctuations in interest rates; global macroeconomic and political conditions including tariffs, inflation and armed conflicts; and fluctuations and volatility in 
our stock price. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forwardlooking statements we make. Further information on these and other factors that could cause or contribute to such differences include, but are not limited to, those discussed in the “Risk 
Factors” section in our Annual Report on Form 10-K filed for the year ended December 31, 2024 and in our other Securities and Exchange Commission (“SEC”) filings. We cannot guarantee that 
we will achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.
Forward-looking statements represent our management’s beliefs and assumptions only as of the date of this presentation. We undertake no obligation, and do not intend, to update these 
forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.
This presentation includes certain non‐GAAP financial measures and the corresponding growth rates as defined by SEC rules. For additional information, see the slide titled “Statement 
Regarding Use of Non-GAAP Financial Measures.”
Terms such as Remaining Performance Obligations (“RPO”), Current Remaining Performance Obligations (“cRPO”) and Renewal Rate shall have the meanings set forth in our filings with the 
SEC.
The information in this presentation on new products, features, or functionality, including products that incorporate AI technology, is intended to outline our general product direction and should 
not be relied upon in making a purchasing decision. The information on new products, features, and functionality is for informational purposes only and shall not be incorporated into any 
contract. The information on new products, features, and functionality is not a commitment, promise, or legal obligation to deliver any material, code or functionality. The development, release, 
and timing of any features or functionality described for our products remains at our sole discretion.
Safe Harbor and other information
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© 2025 ServiceNow, Inc. All Rights Reserved. 3
© 2025 ServiceNow, Inc. All Rights Reserved.
We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
We adjust revenues and related growth rates (“revenues”), and current remaining performance obligations (“cRPO”) and remaining performance obligations (”RPO”) and related growth rates for constant 
currency to provide a framework for assessing how our business performed excluding the effect of foreign currency rate fluctuations, and for revenues only, any gains or losses from foreign currency 
hedge contracts that are reported in the current and comparative period. To exclude the effect of foreign currency rate fluctuations, current period revenues results for entities reporting in currencies other 
than U.S. Dollars are converted into U.S. Dollars at the average exchange rates in effect for the comparison period, rather than the actual exchange rates in effect for the current period. Guidance for related 
growth rates is derived by applying the average exchange rates in effect during the comparison period, rather than the exchange rates for the guidance period, adjusted for any foreign currency hedging 
effects. We believe the presentation of revenues and corresponding growth rates adjusted for constant currency by excluding effects of foreign currency rate fluctuations and any gains or losses from 
foreign currency hedge contracts facilitates the comparison of revenues year-over-year. Current period cRPO and RPO results and related growth rates for entities reporting in currencies other than U.S. 
Dollars are converted into U.S. Dollars at the exchange rates in effect at the end of the comparison period rather than the actual end of the period exchange rates in effect during the current period. 
Guidance for cRPO growth rates is derived by applying the end of period exchange rates in effect during the comparison period rather than the exchange rates in effect during the guidance period. We 
believe the presentation of cRPO and RPO and related growth rates adjusted for constant currency facilitates the comparison of cRPO and RPO year-over-year, respectively.
Our non-GAAP presentation of gross profit, income from operations, and net income measures exclude certain non-cash or non-recurring items, including stock-based compensation expense, 
amortization of purchased intangibles, legal settlements, business combination and other related costs including compensation expense, impairment of assets, severance costs, and income tax effects 
and adjustments. We believe these adjustments provide useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across 
reporting periods.
Free cash flow is defined as net cash provided by operating activities plus cash outflows for legal settlements and business combination and other related costs including compensation expense, reduced 
by purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of total revenues. We believe information regarding free cash flow and free cash flow 
margin provides useful information to investors because it is an indicator of the strength and performance of our business operations.
Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as 
our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this presentation for the 
reconciliation of GAAP and non-GAAP results.
Statement Regarding Use of 
Non-GAAP Financial Measures
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© 2025 ServiceNow, Inc. All Rights Reserved. 4
Technology
Workflows
Core Business 
Workflows
CRM and Industry 
Workflows
Creator
Workflows
Connect AI, data, and workflows to maximize the value of existing technology investments, cut costs, 
and make impactful improvements in core business processes all on a single platform
Accelerate digital 
transformation with 
resilient, cost-efficient, 
and secure technology
Provide easy-to-follow 
processes across HR, 
Procurement, Facilities, 
Legal, and Finance, 
reducing costs and 
improving performance
Intelligently orchestrate 
customer experiences to 
service, sell, and deliver 
on a single platform
Build connected crossenterprise workflow apps 
fast using low-code and 
hyperautomation that 
safely deliver agile 
services at scale
© 2025 ServiceNow, Inc. All Rights Reserved. 4
ServiceNow AI Platform
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© 2025 ServiceNow, Inc. All Rights Reserved. 5
© 2025 ServiceNow, Inc. All Rights Reserved.
We are the AI Platform for Business Transformation
Our aspiration is to be the 
defining enterprise software 
company of the 21st century
We move with the pace of 
innovation to help customers 
transform organizations across 
every industry while upholding a 
trustworthy, human centered 
approach to deploying our 
products and services at scale 
Our approximately 8,400 global 
customers(1) include over 85% of 
the Fortune 500. They all rely on 
ServiceNow solutions using the 
Now AI Platform—the intelligent 
and intuitive cloud platform—for 
successful digital transformation
From Fortune ©2025 Fortune Media IP Limited. All rights reserved. Fortune and Fortune 500® are registered trademarks of Fortune Media IP Limited and are used under 
license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse the products or services of, ServiceNow.
(1) Global customers count is as of the end of fiscal 2024.
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© 2025 ServiceNow, Inc. All Rights Reserved.
Q2-25 Financial Highlights
(1) Currency impact on subscription revenue growth rates are derived by applying the average exchange rates in effect during the comparison period, rather than the actual average exchange rates in effect during the current period, excluding 
any gains or losses from foreign currency hedge contracts that are reported in the current and comparative periods. Currency impact on cRPO and RPO growth rates are derived by applying the exchange rates in effect at the end of the 
comparison period rather than the actual end of period exchange rates in effect during the current period. 
(2) The non-GAAP growth rates for subscription revenues are adjusted for constant currency by excluding effects of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts, and cRPO and RPO are adjusted 
only for constant currency. See slides 10-11 for additional discussion of non-GAAP subscription revenues and their corresponding growth rates. See slide 12 for additional discussion of non-GAAP cRPO and RPO and their corresponding growth rates.
(3) This financial metric and its corresponding growth rate, if applicable, are calculated on a non-GAAP basis. See appendix for a reconciliation of non-GAAP financial measures to the most comparable GAAP measures.
Note: Numbers rounded for presentation purposes.
Q2 2025 Results Quarterly Results Increase 
(Decrease) Y/Y Currency Impact(1) Non-GAAP Constant Currency Y/Y(2)
Subscription Revenues $3,113M 22.5% ~100bps tailwind 21.5%
Current RPO (cRPO) $10.92B 24.5% ~300bps tailwind 21.5%
Remaining Performance Obligations (RPO) $23.9B 29% ~350bps tailwind 25.5%
Non-GAAP Operating Margin(3) 29.5% ~250bps NA NA
Non-GAAP Free Cash Flow Margin(3) 16.5% ~300bps NA NA
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© 2025 ServiceNow, Inc. All Rights Reserved.
2025 Guidance Assumptions
ServiceNow has a larger-than-average customer cohort scheduled to renew in Q4 2025. As a result, Q3 
2025 will experience approximately 2 points of headwinds to cRPO growth as the contractual obligations 
wind down. We expect that cohort to renew in Q4 2025, at which time those headwinds will subside.
As noted last quarter, U.S. Federal agencies are navigating changes, from tightening budgets to evolving 
mission demands. We expect those dynamics to continue into Q3 2025. We remain confident that our 
revised guidance appropriately reflects these trends and continues to set us up for success for the 
remainder of the year.
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© 2025 ServiceNow, Inc. All Rights Reserved.
Guidance Summary
Q3 2025 Guidance Quarterly Guidance Increase 
(Decrease) Y/Y
Currency Impact 
Included in 
Guidance(1)
Non-GAAP Constant 
Currency Y/Y(2)
Subscription Revenues $3,260M - $3,265M 20% - 20.5% ~50bps tailwind 19.5%
Non-GAAP Operating Margin(3) 30.5% ~(50bps) NA NA
Current RPO (cRPO) Growth 18.5% NA ~50bps tailwind 18%
FY 2025 Guidance Full-Year Guidance Increase 
(Decrease) Y/Y
Currency Impact 
Included in 
Guidance(1)
Non-GAAP Constant 
Currency Y/Y(2)
Subscription Revenues $12,775M - $12,795M 20% ~50bps tailwind 19.5% - 20%
Non-GAAP Subscription Gross Margin(3) 83.5% ~(150bps) NA NA
Non-GAAP Operating Margin(3) 30.5% ~100bps NA NA
Non-GAAP Free Cash Flow Margin(3) 32% ~50bps NA NA
(1) Currency impact on subscription revenues growth rates are derived by applying the average exchange rates in effect during the comparison period, rather than the exchange rates for the guidance period, adjusted for any foreign currency hedging effects. Currency impact on 
cRPO growth rates are derived by applying the end of period exchange rates in effect during the comparison period rather than the exchange rates in effect during the guidance period.
(2) The non-GAAP growth rates for subscription revenues are adjusted for constant currency by excluding effects of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts, and cRPO is adjusted only for constant currency.
(3) This financial metric and its corresponding growth rate, if applicable, are calculated on a non-GAAP basis. See appendix for a reconciliation of non-GAAP financial measures to the most comparable GAAP measures.
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Comparison to Previously Issued Guidance
$12,660 $100 $25 $12,785 
Q2-25A FY25E
19% 20%
Currency Impact Actual Results Prev. Guidance Midpoint(1) (2) Q2 Performance Guidance Change Current Guidance Midpoint
$3,033 $27 $54 $3,113 
(1) Refers to previously issued financial guidance dated 4/23/25.
(2) GAAP subscription revenues included in our previous guidance is based on the 31-day average foreign exchange rates for March 2025 for entities reporting in currencies other than U.S. Dollars. Currency impact in Q2 2025 represents the impact of the difference between the 
actual average foreign exchange rates in the period used to calculate our Q2 2025 actual results and the 31-day average foreign exchange rates for March 2025 assumed in our previously issued guidance dated 4/23/25, including any gains or losses from foreign currency hedge 
contracts. Currency impact on our full year guidance represents the impact of the difference between the 30-day average foreign exchange rates for June 2025 assumed in our updated full-year 2025 guidance, and the 31-day average foreign exchange rates for March 2025 in our 
previously issued guidance dated 4/23/25, including any gains or losses from foreign currency hedge contracts.
Note: Numbers rounded for presentation purposes and may not foot.
($M)
Subscription 
Revenues
Y/Y Growth 19% 22.5%
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Year-Over-Year Subscription Revenues Growth
25%
27% 27%
25%
23%
26%
23% 23%
21%
19%
23% 22% 22% 23%
21% 20%
22% 23%
Non-GAAP Constant Currency Sub Revenue Growth Previous Year Growth Actual Growth (1)
Subscription Revenues (%)
Q2-24A Q3-24A Q4-24A FY24A
(1) Non-GAAP subscription revenues growth rates are adjusted only for constant currency and derived by adjusting subscription revenues for constant currency by applying the average exchange rates in effect during the comparison period rather than the actual 
average exchange rate in effect during the current period and excluding any gains or losses from foreign currency hedge contracts.
Note: Numbers are rounded to the nearest whole percentage for presentation purposes.
Q1-25A Q2-25A
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Currency Impact to Year-Over-Year Sub. Revenues
23% 23%
$2,542 
$10 
$2,552 
Q2-24A
$3,113 
22% 22%
Q2-25A
$3,005 
19% 20%
Q1-25A
23% 22%
$(4)
Q3-24A
$2,711 $2,866 
21% 21%
Q4-24A
$2,859
$(7)
(1) Non-GAAP constant currency subscription revenues and the corresponding growth figures are adjusted only for constant currency and derived by applying the average exchange rates in effect during the comparison period rather than the actual average exchange rate 
in effect during the current period and excluding any gains or losses from foreign currency hedge contracts. 
Note: Numbers are rounded to the nearest whole percentage for presentation purposes.
Y/Y 
Growth
Non-GAAP Constant Currency Sub Revenues Actuals Currency Impact (1)
Subscription Revenues ($M)
$3,086
$2,715 …
23% 23%
FY24A
$(7)
$10,646 $10,639
$(27)
$3,031
$26
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Remaining Performance Obligations (RPO)
$8.78 $9.36 $10.27 $10.31 $10.92
$9.8 $10.2 
$12.0 $11.8 $13.0 
$18.6 $19.5
$22.3 $22.1
$23.9
Q2-24 Q3-24 Q4-24 Q1-25 Q2-25
Current RPO Noncurrent RPO
(1) The total RPO and current RPO growth rates are adjusted only for constant currency. Results for entities reporting in currencies other than U.S. Dollars are converted into U.S. Dollars at the exchange rates in effect at the end of the comparison period, rather than the 
actual exchange rates in effect at the end of the current period.
Note: Numbers rounded for presentation purposes.
($B)
cRPO Y/Y Growth 22% 26% 19.5% 22% 24.5%
cRPO cc(1) Y/Y Growth 22.5% 23.5% 22% 22% 21.5%
+29% / +25.5% cc(1)
Total RPO
Q2-25
Y/Y Growth
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© 2025 ServiceNow, Inc. All Rights Reserved.
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
Customer Cohort Growth
70%
170%
222%
280% (1)
167%
116%
122%
104%
78%
81%
84%
(1) As an illustrative example, 2010 customer cohort started with a contract of initial ACV (annual contract value) of $100 and grew to ACV of $4,300 as of Q2-25 and represents annual growth of initial ACV of 280%.
Note: Chart reflects growth in total annual contract value over time, inclusive of losses, for the group of customers that joined ServiceNow in each respective year. Annual Growth represents increases in total annual contract value after the initial contract of 
each customer.
52%
53%
55%
45%
Annual Growth of Initial ACV
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$12.4 $12.7 $13.1 $13.3 $13.5 $13.8 $14.0 $14.3 $14.5
Avg ACV of Customers with $5M+ ACV
364 384
414 426 442 462
499 509 528
Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25
Number of Customers with $5M+ ACV
Note: Previously disclosed number of customers with ACV greater than $5 million is restated to allow for comparability. ACV is calculated based on the foreign exchange rate in effect at the time the contract was entered into. Foreign exchange rate fluctuations could cause 
some variability in the number of customers with ACV greater than $5 million.
($M)
Expansion of Customer Relationships
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Renewal Rate
98% 98% 98% 98% 98%
Q2-24 Q3-24 Q4-24 Q1-25 Q2-25
Note: We adjust our Renewal Rate for acquisitions, consolidations and other customer events that cause the merging of two or more accounts occurring at the time of renewal.
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Net New ACV Contribution Across Workflows and Products(1)
(1) Historical presentations disclosed net new ACV contribution across products and are not comparable to net new ACV contribution across workflows and products disclosed herein. NNACV generated from Industry products is spread across several workflows, the 
majority of which is reported under CRM and Industry Workflows.
Note: Technology Workflows include IT Service Management, IT Operations Management, Asset Management, Security Operations, Integrated Risk Management, Strategic Portfolio Management, Operational Technology Management, and others. CRM and Industry & 
Core Business Workflows include Customer Service Management, Field Service Management, HR Service Delivery, Workplace Service Delivery, Legal Service Delivery, Source-to-Pay Operations, and others. Creator Workflows & Others include App Engine, Workflow Data 
Fabric, Platform Privacy & Security, and others. Prior to Q1-25, Source-to-Pay Operations were included as part of Creator Workflows & Others.
54% 54% 52% 48% 56%
29% 31% 30% 34% 26%
17% 15% 18% 18% 18%
Q2-24 Q3-24 Q4-24 Q1-25 Q2-25
Technology Workflows CRM and Industry & Core Business Workflows Creator Workflows & Others
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GAAP Revenues by Geography
63% 64% 62% 64% 62%
25% 25% 27% 25% 26%
12% 11% 11% 11% 12%
Q2-24 Q3-24 Q4-24 Q1-25 Q2-25
North America EMEA APAC & Other
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Headcount by Department
917 905 911 859 878
4,063 4,351 4,583 4,749 5,003
8,585 9,008 9,083 9,219 9,271
7,912 8,393 8,583 8,640 8,874
2,992 
3,086 3,133 3,231 24,469 3,268 
25,743 26,293 26,698 27,294 
Q2-24 Q3-24 Q4-24 Q1-25 Q2-25
PS & Other Cost of Sales Sub. Cost of Sales S&M R&D G&A
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15.5% 7.5% 8.5%
4.0%
14.0%
9.5% 11.5%
Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FY23 FY24
Non-GAAP Gross Margins
Note: All figures are calculated on a non-GAAP basis. See appendix for reconciliation of non-GAAP financial measures. 
85.0% 85.0% 84.5% 84.5%
83.0%
84.5% 85.0%
Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FY23 FY24
82.5% 82.5% 82.0% 82.0% 81.0% 82.5% 82.5%
Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FY23 FY24
Non-GAAP Subscription Gross Margin
Non-GAAP PS & Other Gross Margin
Non-GAAP Total Gross Margin
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Non-GAAP Operating and Free Cash Flow 
Margins
13.5% 17.0%
47.5% 48.0%
16.5%
30.5% 31.5%
Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FY23 FY24
Non-GAAP Free Cash Flow Margin
27.5%
31.0% 29.5% 31.0% 29.5% 27.5% 29.5%
Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FY23 FY24
Non-GAAP Operating Margin
Note: All figures are calculated on a non-GAAP basis. See appendix for reconciliation of non-GAAP financial measures.
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Non-GAAP Net Income and Diluted EPS
$3.13 $3.72 $3.67 $4.04 $4.09 
$10.78 
$13.92 
Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FY23 FY24
$651 $775 $769 $846 $854
$2,215
$2,902
Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FY23 FY24
Non-GAAP Net Income ($M)
Non-GAAP Diluted EPS
Note: All figures are calculated on a non-GAAP basis. See appendix for reconciliation of non-GAAP financial measures.
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GAAP to Non-GAAP 
Reconciliation
and Supplemental 
Information
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GAAP to Non-GAAP Reconciliation – Other 
Note: Numbers rounded for presentation purposes and may not foot. 
 in millions (except %'s and per share data) 2023 Margin Q1'24 Margin Q2'24 Margin Q3'24 Margin Q4'24 Margin 2024 Margin Q1'25 Margin Q2'25 Margin Q3'25E Margin 2025E Margin
GAAP Subscription Gross Profit $ 7,074 81.5% $ 2,082 82.5% $ 2,073 81.5% $ 2,219 81.5% $ 2,330 81.5% $ 8,704 82% $ 2,444 81.5% $ 2,488 80% N/A N/A N/A 80.5%
 (+) Subscription SBC $ 202 2.5% $ 58 2.5% $ 62 2.5% $ 64 2.5% $ 66 2.5% $ 250 2.5% $ 68 2.5% $ 76 2.5% N/A N/A N/A 2%
 (+) Subscription Amort of Purchased Intangibles $ 77 1% $ 21 1% $ 21 1% $ 22 1% $ 20 0.5% $ 84 1% $ 20 0.5% $ 23 0.5% N/A N/A N/A 1%
 (+) Business Combination and Other Related Costs - 0% - 0% - 0% - 0% - 0% - 0% - 0% - 0% N/A N/A N/A 0%
 (+) Severance Costs - 0% - 0% - 0% - 0% - 0% - 0% - 0% $ 3 0% N/A N/A N/A 0%
Non-GAAP Subscription Gross Profit $ 7,353 84.5% $ 2,161 85.5% $ 2,156 85% $ 2,305 85% $ 2,416 84.5% $ 9,038 85% $ 2,532 84.5% $ 2,590 83% N/A N/A N/A 83.5%
GAAP Professional Services and Other Gross Profit (Loss) $ (24) (8.5%) $ 1 1% $ 2 2% $ (6) (6.5%) $ (4) (4%) $ (7) (2%) $ (7) (8.5%) $ 3 3% N/A N/A N/A N/A
 (+) Professional Services and Other SBC $ 52 17.5% $ 12 14.5% $ 12 13.5% $ 11 14% $ 11 12.5% $ 46 13.5% $ 11 13% $ 11 11% N/A N/A N/A N/A
 (+) Severance Costs - 0% - 0% - 0% - 0% - 0% - 0% - 0% - 0% N/A N/A N/A N/A
Non-GAAP Professional Services and Other Gross Profit $ 28 9.5% $ 13 15.5% $ 14 15.5% $ 5 7.5% $ 7 8.5% $ 39 11.5% $ 4 4% $ 14 14% N/A N/A N/A N/A
GAAP Gross Profit $ 7,050 78.5% $ 2,083 80% $ 2,075 79% $ 2,213 79% $ 2,326 78.5% $ 8,697 79% $ 2,437 79% $ 2,491 77.5% N/A N/A N/A N/A
 (+) SBC $ 254 3% $ 70 2.5% $ 74 3% $ 75 2.5% $ 77 2.5% $ 296 2.5% $ 79 2.5% $ 87 2.5% N/A N/A N/A N/A
 (+) Amort of Purchased Intangibles $ 77 1% $ 21 1% $ 21 1% $ 22 1% $ 20 0.5% $ 84 1% $ 20 0.5% $ 23 0.5% N/A N/A N/A N/A
 (+) Severance Costs - 0% - 0% - 0% - 0% - 0% - 0% - 0% $ 3 0% N/A N/A N/A N/A
Non-GAAP Gross Profit $ 7,381 82.5% $ 2,174 83.5% $ 2,170 82.5% $ 2,310 82.5% $ 2,423 82% $ 9,077 82.5% $ 2,536 82% $ 2,604 81% N/A N/A N/A N/A
GAAP Income from Operations $ 762 8.5% $ 332 12.5% $ 240 9% $ 418 15% $ 374 12.5% $ 1,364 12.5% $ 451 14.5% $ 358 11% N/A 14% N/A 14%
 (+) SBC $ 1,604 18% $ 422 16% $ 444 17% $ 426 15% $ 454 15.5% $ 1,746 16% $ 470 15% $ 499 15.5% N/A 15% N/A 15%
 (+) Amort of Purchased Intangibles $ 85 1% $ 24 1% $ 24 1% $ 23 1% $ 23 1% $ 94 1% $ 21 0.5% $ 25 1% N/A 1% N/A 1%
 (+) Business Combination and Other Related Costs $ 38 0.5% $ 13 0.5% $ 12 0.5% $ 4 0% $ 4 0% $ 33 0.5% $ 11 0.5% $ 14 0.5% N/A 0% N/A 0%
 (+) Impairment of Assets - 0% - 0% - 0% - 0% - 0% - 0% - 0% $ 30 1% N/A N/A N/A 0%
 (+) Severance Costs - 0% - 0% - 0% - 0% - 0% - 0% - 0% $ 29 1% N/A 0% N/A 0%
 (+) Legal Settlements - 0% - 0% - 0% - 0% $ 17 0.5% $ 17 0% - 0% - 0% N/A 0% N/A 0%
Non-GAAP Income from Operations $ 2,489 27.5% $ 791 30.5% $ 720 27.5% $ 872 31% $ 872 29.5% $ 3,254 29.5% $ 953 31% $ 955 29.5% N/A 30.5% N/A 30.5%
GAAP Net Income $ 1,731 19.5% $ 347 13.5% $ 262 10% $ 432 15.5% $ 384 13% $ 1,425 13% $ 460 15% $ 385 12% N/A N/A N/A N/A
 (+) SBC $ 1,604 18% $ 422 16% $ 444 17% $ 426 15% $ 454 15.5% $ 1,746 16% $ 470 15% $ 499 15.5% N/A N/A N/A N/A
 (+) Amort of Purchased Intangibles $ 85 1% $ 24 1% $ 24 1% $ 23 1% $ 23 1% $ 94 1% $ 21 0.5% $ 25 1% N/A N/A N/A N/A
 (+) Business Combination and Other Related Costs $ 38 0.5% $ 13 0.5% $ 12 0.5% $ 4 0% $ 4 0% $ 33 0.5% $ 11 0.5% $ 14 0.5% N/A N/A N/A N/A
 (+) Impairment of Assets - 0% - 0% - 0% - 0% - 0% - 0% - 0% $ 30 1% N/A N/A N/A N/A
 (+) Severance Costs - 0% - 0% - 0% - 0% - 0% - 0% - 0% $ 29 1% N/A N/A N/A N/A
 (+) Legal Settlements - 0% - 0% - 0% - 0% $ 17 0.5% $ 17 0% - 0% - 0% N/A N/A N/A N/A
 (-) Income Tax Expense Effects Related to the Above Adjustments (1) $ (193) (2%) $ (99) (4%) $ (91) (3.5%) $ (110) (4%) $ (113) (4%) $ (413) (4%) $ (116) (4%) $ (128) (4%) N/A N/A N/A N/A
 (-) Income Tax benefit from the release of a valuation allowance on the deferred tax asset $ (1,050) (11.5%) - 0% - 0% - 0% - 0% - 0% - 0% - 0% N/A N/A N/A N/A
Non-GAAP Net Income $ 2,215 24.5% $ 707 27% $ 651 25% $ 775 27.5% $ 769 26% $ 2,902 26.5% $ 846 27.5% $ 854 26.5% N/A N/A N/A N/A
Weighted-Average Shares Used to Compute Net Income per Share - Diluted 206 N/A 208 N/A 208 N/A 209 N/A 209 NA 208 208 209 N/A 209 N/A 210 N/A 210 N/A
GAAP Net Income per Share - Diluted $ 8.42 N/A $ 1.67 N/A $ 1.26 N/A $ 2.07 N/A $ 1.83 N/A $ 6.84 N/A $ 2.20 N/A $ 1.84 N/A N/A N/A N/A N/A
Non-GAAP Net Income per Share - Diluted $ 10.78 N/A $ 3.41 N/A $ 3.13 N/A $ 3.72 N/A $ 3.67 N/A $ 13.92 N/A $ 4.04 N/A $ 4.09 N/A N/A N/A N/A N/A
GAAP Net Cash Provided by Operating Activities $ 3,398 38% $ 1,341 51.5% $ 620 23.5% $ 671 24% $ 1,635 55.5% $ 4,267 39% $ 1,677 54.5% $ 716 22.5% N/A N/A N/A 39%
 (-) Purchases of Property and Equipment $ (694) (7.5%) $ (135) (5%) $ (262) (10%) $ (202) (7%) $ (253) (8.5%) $ (852) (8%) $ (205) (6.5%) $ (190) (6%) N/A N/A N/A (7%)
 (+) Cash Paid for Legal Settlements - 0% - 0% - 0% - 0% $ 17 0.5% $ 17 0% - 0% - 0% N/A N/A N/A 0%
 (+) Business combination and other related costs $ 24 0.5% $ 19 0.5% $ 1 0% $ 2 0% $ 1 0% $ 23 0% $ 5 0% $ 9 0.5% N/A N/A N/A 0%
Non-GAAP Free Cash Flow $ 2,728 30.5% $ 1,225 47% $ 359 13.5% $ 471 17% $ 1,400 47.5% $ 3,455 31.5% $ 1,477 48% $ 535 16.5% N/A N/A N/A 32%
(1) We use a non-GAAP effective tax rate for evaluating our operating results to provide consistency across reporting periods. Based on our long-term projections, we are using a non-GAAP tax rate of 20% for each of the three months ended June 30, 2025 and 2024. This non-GAAP tax rate could change for various 
reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate.
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    24
© 2025 ServiceNow, Inc. All Rights Reserved. 24
Supplemental Information
 in millions Q1'24 Q2'24 Q3'24 Q4'24 2024 Q1'25 Q2'25
Stock-based compensation
Cost of revenues:
 Subscription $ 58 $ 62 $ 64 $ 66 $ 250 $ 68 $ 76 
 Professional services and other $ 12 $ 12 $ 11 $ 11 $ 46 $ 11 $ 11 
Operating expenses:
 Sales and marketing $ 134 $ 141 $ 144 $ 146 $ 565 $ 148 $ 155 
 Research and development $ 159 $ 170 $ 150 $ 176 $ 655 $ 185 $ 196 
 General and administrative $ 59 $ 59 $ 57 $ 55 $ 230 $ 58 $ 61 
Total stock-based compensation $ 422 $ 444 $ 426 $ 454 $ 1,746 $ 470 $ 499 
Amortization of purchase intangibles
Cost of revenues:
 Subscription $ 21 $ 21 $ 22 $ 20 $ 84 $ 20 $ 23 
 Professional services and other $ - $ - $ - $ - $ - $ - $ - 
Operating expenses:
 Sales and marketing $ - $ - $ - $ - $ - $ - $ - 
 Research and development $ - $ - $ - $ - $ - $ - $ - 
 General and administrative $ 4 $ 2 $ 1 $ 3 $ 10 $ 1 $ 2 
Total amortization of purchase intangibles $ 24 $ 24 $ 23 $ 23 $ 94 $ 21 $ 25 
Business combinations and other related costs
Cost of revenues:
 Subscription $ - $ - $ - $ - $ - $ - $ - 
 Professional services and other $ - $ - $ - $ - $ - $ - $ - 
Operating expenses:
 Sales and marketing $ - $ - $ - $ 1 $ 1 $ - $ - 
 Research and development $ 11 $ 10 $ 3 $ 2 $ 26 $ 2 $ 2 
 General and administrative $ 2 $ 2 $ 1 $ 1 $ 6 $ 9 $ 12 
Total Business combinations and other related 
costs $ 13 $ 12 $ 4 $ 4 $ 33 $ 11 $ 14 
Legal Settlements
Cost of revenues:
 Subscription $ - $ - $ - $ - $ - $ - $ - 
 Professional services and other $ - $ - $ - $ - $ - $ - $ - 
Operating expenses:
 Sales and marketing $ - $ - $ - $ - $ - $ - $ - 
 Research and development $ - $ - $ - $ - $ - $ - $ - 
 General and administrative $ - $ - $ - $ 17 $ 17 $ - $ - 
Total Legal Settlements $ - $ - $ - $ 17 $ 17 $ - $ - 
Impairment of assets
Cost of revenues:
 Subscription $ - $ - $ - $ - $ - $ - $ - 
 Professional services and other $ - $ - $ - $ - $ - $ - $ - 
Operating expenses:
 Sales and marketing $ - $ - $ - $ - $ - $ - $ - 
 Research and development $ - $ - $ - $ - $ - $ - $ - 
 General and administrative $ - $ - $ - $ - $ - $ - $ 30 
Total Impairment of assets $ - $ - $ - $ - $ - $ - $ 30 
Severance costs
Cost of revenues:
 Subscription $ - $ - $ - $ - $ - $ - $ 3 
 Professional services and other $ - $ - $ - $ - $ - $ - $ - 
Operating expenses:
 Sales and marketing $ - $ - $ - $ - $ - $ - $ 19 
 Research and development $ - $ - $ - $ - $ - $ - $ 5 
 General and administrative $ - $ - $ - $ - $ - $ - $ 2 
Total Severance costs $ - $ - $ - $ - $ - $ - $ 29 
Note: Numbers rounded for presentation purposes and may not foot.
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    ServiceNow Q2 2025 Financial Highlights - Page 25
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    ServiceNow Q2 2025 Financial Highlights

    • 1. Investor Presentation Second Quarter 2025
    • 2. 2 © 2025 ServiceNow, Inc. All Rights Reserved. 2 © 2025 ServiceNow, Inc. All Rights Reserved. This presentation contains “forward‐looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. Forward‐looking statements include information concerning our possible or assumed strategy, future operations, financing plans, operating model, financial position, future revenues, projected costs, competitive position, industry environment, potential growth opportunities, potential market opportunities, plans and objectives of management, the effects of competition on our business and customer trends. Forward‐looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates,” “believes,” “could,” “seeks,” “estimates” (including, without limitation, financial estimates denoted with an “E,” such as FY25E), “targets,” “guidance,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “prospects,” “projects,” “should,” “will,” “would” or similar expressions and the negatives of those terms, although not all forward‐looking statements contain these identifying words. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Additionally, these forward-looking statements, particularly our guidance, involve risks, uncertainties and assumptions based on information available to us as of July 23, 2025, including those related to our future financial performance, global economic conditions and demand for digital transformation. Many of these assumptions relate to matters that are beyond our control and changing rapidly, including, but not limited to, fluctuations in the value of foreign currencies relative to the U.S. Dollar; fluctuations in interest rates; global macroeconomic and political conditions including tariffs, inflation and armed conflicts; and fluctuations and volatility in our stock price. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forwardlooking statements we make. Further information on these and other factors that could cause or contribute to such differences include, but are not limited to, those discussed in the “Risk Factors” section in our Annual Report on Form 10-K filed for the year ended December 31, 2024 and in our other Securities and Exchange Commission (“SEC”) filings. We cannot guarantee that we will achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Forward-looking statements represent our management’s beliefs and assumptions only as of the date of this presentation. We undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter. This presentation includes certain non‐GAAP financial measures and the corresponding growth rates as defined by SEC rules. For additional information, see the slide titled “Statement Regarding Use of Non-GAAP Financial Measures.” Terms such as Remaining Performance Obligations (“RPO”), Current Remaining Performance Obligations (“cRPO”) and Renewal Rate shall have the meanings set forth in our filings with the SEC. The information in this presentation on new products, features, or functionality, including products that incorporate AI technology, is intended to outline our general product direction and should not be relied upon in making a purchasing decision. The information on new products, features, and functionality is for informational purposes only and shall not be incorporated into any contract. The information on new products, features, and functionality is not a commitment, promise, or legal obligation to deliver any material, code or functionality. The development, release, and timing of any features or functionality described for our products remains at our sole discretion. Safe Harbor and other information
    • 3. 3 © 2025 ServiceNow, Inc. All Rights Reserved. 3 © 2025 ServiceNow, Inc. All Rights Reserved. We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. We adjust revenues and related growth rates (“revenues”), and current remaining performance obligations (“cRPO”) and remaining performance obligations (”RPO”) and related growth rates for constant currency to provide a framework for assessing how our business performed excluding the effect of foreign currency rate fluctuations, and for revenues only, any gains or losses from foreign currency hedge contracts that are reported in the current and comparative period. To exclude the effect of foreign currency rate fluctuations, current period revenues results for entities reporting in currencies other than U.S. Dollars are converted into U.S. Dollars at the average exchange rates in effect for the comparison period, rather than the actual exchange rates in effect for the current period. Guidance for related growth rates is derived by applying the average exchange rates in effect during the comparison period, rather than the exchange rates for the guidance period, adjusted for any foreign currency hedging effects. We believe the presentation of revenues and corresponding growth rates adjusted for constant currency by excluding effects of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts facilitates the comparison of revenues year-over-year. Current period cRPO and RPO results and related growth rates for entities reporting in currencies other than U.S. Dollars are converted into U.S. Dollars at the exchange rates in effect at the end of the comparison period rather than the actual end of the period exchange rates in effect during the current period. Guidance for cRPO growth rates is derived by applying the end of period exchange rates in effect during the comparison period rather than the exchange rates in effect during the guidance period. We believe the presentation of cRPO and RPO and related growth rates adjusted for constant currency facilitates the comparison of cRPO and RPO year-over-year, respectively. Our non-GAAP presentation of gross profit, income from operations, and net income measures exclude certain non-cash or non-recurring items, including stock-based compensation expense, amortization of purchased intangibles, legal settlements, business combination and other related costs including compensation expense, impairment of assets, severance costs, and income tax effects and adjustments. We believe these adjustments provide useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods. Free cash flow is defined as net cash provided by operating activities plus cash outflows for legal settlements and business combination and other related costs including compensation expense, reduced by purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of total revenues. We believe information regarding free cash flow and free cash flow margin provides useful information to investors because it is an indicator of the strength and performance of our business operations. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this presentation for the reconciliation of GAAP and non-GAAP results. Statement Regarding Use of Non-GAAP Financial Measures
    • 4. 4 © 2025 ServiceNow, Inc. All Rights Reserved. 4 Technology Workflows Core Business Workflows CRM and Industry Workflows Creator Workflows Connect AI, data, and workflows to maximize the value of existing technology investments, cut costs, and make impactful improvements in core business processes all on a single platform Accelerate digital transformation with resilient, cost-efficient, and secure technology Provide easy-to-follow processes across HR, Procurement, Facilities, Legal, and Finance, reducing costs and improving performance Intelligently orchestrate customer experiences to service, sell, and deliver on a single platform Build connected crossenterprise workflow apps fast using low-code and hyperautomation that safely deliver agile services at scale © 2025 ServiceNow, Inc. All Rights Reserved. 4 ServiceNow AI Platform
    • 5. 5 © 2025 ServiceNow, Inc. All Rights Reserved. 5 © 2025 ServiceNow, Inc. All Rights Reserved. We are the AI Platform for Business Transformation Our aspiration is to be the defining enterprise software company of the 21st century We move with the pace of innovation to help customers transform organizations across every industry while upholding a trustworthy, human centered approach to deploying our products and services at scale Our approximately 8,400 global customers(1) include over 85% of the Fortune 500. They all rely on ServiceNow solutions using the Now AI Platform—the intelligent and intuitive cloud platform—for successful digital transformation From Fortune ©2025 Fortune Media IP Limited. All rights reserved. Fortune and Fortune 500® are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse the products or services of, ServiceNow. (1) Global customers count is as of the end of fiscal 2024.
    • 6. 6 © 2025 ServiceNow, Inc. All Rights Reserved. 6 © 2025 ServiceNow, Inc. All Rights Reserved. Q2-25 Financial Highlights (1) Currency impact on subscription revenue growth rates are derived by applying the average exchange rates in effect during the comparison period, rather than the actual average exchange rates in effect during the current period, excluding any gains or losses from foreign currency hedge contracts that are reported in the current and comparative periods. Currency impact on cRPO and RPO growth rates are derived by applying the exchange rates in effect at the end of the comparison period rather than the actual end of period exchange rates in effect during the current period. (2) The non-GAAP growth rates for subscription revenues are adjusted for constant currency by excluding effects of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts, and cRPO and RPO are adjusted only for constant currency. See slides 10-11 for additional discussion of non-GAAP subscription revenues and their corresponding growth rates. See slide 12 for additional discussion of non-GAAP cRPO and RPO and their corresponding growth rates. (3) This financial metric and its corresponding growth rate, if applicable, are calculated on a non-GAAP basis. See appendix for a reconciliation of non-GAAP financial measures to the most comparable GAAP measures. Note: Numbers rounded for presentation purposes. Q2 2025 Results Quarterly Results Increase (Decrease) Y/Y Currency Impact(1) Non-GAAP Constant Currency Y/Y(2) Subscription Revenues $3,113M 22.5% ~100bps tailwind 21.5% Current RPO (cRPO) $10.92B 24.5% ~300bps tailwind 21.5% Remaining Performance Obligations (RPO) $23.9B 29% ~350bps tailwind 25.5% Non-GAAP Operating Margin(3) 29.5% ~250bps NA NA Non-GAAP Free Cash Flow Margin(3) 16.5% ~300bps NA NA
    • 7. 7 © 2025 ServiceNow, Inc. All Rights Reserved. 7 © 2025 ServiceNow, Inc. All Rights Reserved. 2025 Guidance Assumptions ServiceNow has a larger-than-average customer cohort scheduled to renew in Q4 2025. As a result, Q3 2025 will experience approximately 2 points of headwinds to cRPO growth as the contractual obligations wind down. We expect that cohort to renew in Q4 2025, at which time those headwinds will subside. As noted last quarter, U.S. Federal agencies are navigating changes, from tightening budgets to evolving mission demands. We expect those dynamics to continue into Q3 2025. We remain confident that our revised guidance appropriately reflects these trends and continues to set us up for success for the remainder of the year.
    • 8. 8 © 2025 ServiceNow, Inc. All Rights Reserved. 8 © 2025 ServiceNow, Inc. All Rights Reserved. Guidance Summary Q3 2025 Guidance Quarterly Guidance Increase (Decrease) Y/Y Currency Impact Included in Guidance(1) Non-GAAP Constant Currency Y/Y(2) Subscription Revenues $3,260M - $3,265M 20% - 20.5% ~50bps tailwind 19.5% Non-GAAP Operating Margin(3) 30.5% ~(50bps) NA NA Current RPO (cRPO) Growth 18.5% NA ~50bps tailwind 18% FY 2025 Guidance Full-Year Guidance Increase (Decrease) Y/Y Currency Impact Included in Guidance(1) Non-GAAP Constant Currency Y/Y(2) Subscription Revenues $12,775M - $12,795M 20% ~50bps tailwind 19.5% - 20% Non-GAAP Subscription Gross Margin(3) 83.5% ~(150bps) NA NA Non-GAAP Operating Margin(3) 30.5% ~100bps NA NA Non-GAAP Free Cash Flow Margin(3) 32% ~50bps NA NA (1) Currency impact on subscription revenues growth rates are derived by applying the average exchange rates in effect during the comparison period, rather than the exchange rates for the guidance period, adjusted for any foreign currency hedging effects. Currency impact on cRPO growth rates are derived by applying the end of period exchange rates in effect during the comparison period rather than the exchange rates in effect during the guidance period. (2) The non-GAAP growth rates for subscription revenues are adjusted for constant currency by excluding effects of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts, and cRPO is adjusted only for constant currency. (3) This financial metric and its corresponding growth rate, if applicable, are calculated on a non-GAAP basis. See appendix for a reconciliation of non-GAAP financial measures to the most comparable GAAP measures.
    • 9. 9 © 2025 ServiceNow, Inc. All Rights Reserved. 9 © 2025 ServiceNow, Inc. All Rights Reserved. Comparison to Previously Issued Guidance $12,660 $100 $25 $12,785 Q2-25A FY25E 19% 20% Currency Impact Actual Results Prev. Guidance Midpoint(1) (2) Q2 Performance Guidance Change Current Guidance Midpoint $3,033 $27 $54 $3,113 (1) Refers to previously issued financial guidance dated 4/23/25. (2) GAAP subscription revenues included in our previous guidance is based on the 31-day average foreign exchange rates for March 2025 for entities reporting in currencies other than U.S. Dollars. Currency impact in Q2 2025 represents the impact of the difference between the actual average foreign exchange rates in the period used to calculate our Q2 2025 actual results and the 31-day average foreign exchange rates for March 2025 assumed in our previously issued guidance dated 4/23/25, including any gains or losses from foreign currency hedge contracts. Currency impact on our full year guidance represents the impact of the difference between the 30-day average foreign exchange rates for June 2025 assumed in our updated full-year 2025 guidance, and the 31-day average foreign exchange rates for March 2025 in our previously issued guidance dated 4/23/25, including any gains or losses from foreign currency hedge contracts. Note: Numbers rounded for presentation purposes and may not foot. ($M) Subscription Revenues Y/Y Growth 19% 22.5%
    • 10. 10 © 2025 ServiceNow, Inc. All Rights Reserved. 10 © 2025 ServiceNow, Inc. All Rights Reserved. Year-Over-Year Subscription Revenues Growth 25% 27% 27% 25% 23% 26% 23% 23% 21% 19% 23% 22% 22% 23% 21% 20% 22% 23% Non-GAAP Constant Currency Sub Revenue Growth Previous Year Growth Actual Growth (1) Subscription Revenues (%) Q2-24A Q3-24A Q4-24A FY24A (1) Non-GAAP subscription revenues growth rates are adjusted only for constant currency and derived by adjusting subscription revenues for constant currency by applying the average exchange rates in effect during the comparison period rather than the actual average exchange rate in effect during the current period and excluding any gains or losses from foreign currency hedge contracts. Note: Numbers are rounded to the nearest whole percentage for presentation purposes. Q1-25A Q2-25A
    • 11. 11 © 2025 ServiceNow, Inc. All Rights Reserved. 11 © 2025 ServiceNow, Inc. All Rights Reserved. Currency Impact to Year-Over-Year Sub. Revenues 23% 23% $2,542 $10 $2,552 Q2-24A $3,113 22% 22% Q2-25A $3,005 19% 20% Q1-25A 23% 22% $(4) Q3-24A $2,711 $2,866 21% 21% Q4-24A $2,859 $(7) (1) Non-GAAP constant currency subscription revenues and the corresponding growth figures are adjusted only for constant currency and derived by applying the average exchange rates in effect during the comparison period rather than the actual average exchange rate in effect during the current period and excluding any gains or losses from foreign currency hedge contracts. Note: Numbers are rounded to the nearest whole percentage for presentation purposes. Y/Y Growth Non-GAAP Constant Currency Sub Revenues Actuals Currency Impact (1) Subscription Revenues ($M) $3,086 $2,715 … 23% 23% FY24A $(7) $10,646 $10,639 $(27) $3,031 $26
    • 12. 12 © 2025 ServiceNow, Inc. All Rights Reserved. 12 © 2025 ServiceNow, Inc. All Rights Reserved. Remaining Performance Obligations (RPO) $8.78 $9.36 $10.27 $10.31 $10.92 $9.8 $10.2 $12.0 $11.8 $13.0 $18.6 $19.5 $22.3 $22.1 $23.9 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Current RPO Noncurrent RPO (1) The total RPO and current RPO growth rates are adjusted only for constant currency. Results for entities reporting in currencies other than U.S. Dollars are converted into U.S. Dollars at the exchange rates in effect at the end of the comparison period, rather than the actual exchange rates in effect at the end of the current period. Note: Numbers rounded for presentation purposes. ($B) cRPO Y/Y Growth 22% 26% 19.5% 22% 24.5% cRPO cc(1) Y/Y Growth 22.5% 23.5% 22% 22% 21.5% +29% / +25.5% cc(1) Total RPO Q2-25 Y/Y Growth
    • 13. 13 © 2025 ServiceNow, Inc. All Rights Reserved. 13 © 2025 ServiceNow, Inc. All Rights Reserved. 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Customer Cohort Growth 70% 170% 222% 280% (1) 167% 116% 122% 104% 78% 81% 84% (1) As an illustrative example, 2010 customer cohort started with a contract of initial ACV (annual contract value) of $100 and grew to ACV of $4,300 as of Q2-25 and represents annual growth of initial ACV of 280%. Note: Chart reflects growth in total annual contract value over time, inclusive of losses, for the group of customers that joined ServiceNow in each respective year. Annual Growth represents increases in total annual contract value after the initial contract of each customer. 52% 53% 55% 45% Annual Growth of Initial ACV
    • 14. 14 © 2025 ServiceNow, Inc. All Rights Reserved. 14 © 2025 ServiceNow, Inc. All Rights Reserved. $12.4 $12.7 $13.1 $13.3 $13.5 $13.8 $14.0 $14.3 $14.5 Avg ACV of Customers with $5M+ ACV 364 384 414 426 442 462 499 509 528 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Number of Customers with $5M+ ACV Note: Previously disclosed number of customers with ACV greater than $5 million is restated to allow for comparability. ACV is calculated based on the foreign exchange rate in effect at the time the contract was entered into. Foreign exchange rate fluctuations could cause some variability in the number of customers with ACV greater than $5 million. ($M) Expansion of Customer Relationships
    • 15. 15 © 2025 ServiceNow, Inc. All Rights Reserved. 15 © 2025 ServiceNow, Inc. All Rights Reserved. Renewal Rate 98% 98% 98% 98% 98% Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Note: We adjust our Renewal Rate for acquisitions, consolidations and other customer events that cause the merging of two or more accounts occurring at the time of renewal.
    • 16. 16 © 2025 ServiceNow, Inc. All Rights Reserved. 16 © 2025 ServiceNow, Inc. All Rights Reserved. Net New ACV Contribution Across Workflows and Products(1) (1) Historical presentations disclosed net new ACV contribution across products and are not comparable to net new ACV contribution across workflows and products disclosed herein. NNACV generated from Industry products is spread across several workflows, the majority of which is reported under CRM and Industry Workflows. Note: Technology Workflows include IT Service Management, IT Operations Management, Asset Management, Security Operations, Integrated Risk Management, Strategic Portfolio Management, Operational Technology Management, and others. CRM and Industry & Core Business Workflows include Customer Service Management, Field Service Management, HR Service Delivery, Workplace Service Delivery, Legal Service Delivery, Source-to-Pay Operations, and others. Creator Workflows & Others include App Engine, Workflow Data Fabric, Platform Privacy & Security, and others. Prior to Q1-25, Source-to-Pay Operations were included as part of Creator Workflows & Others. 54% 54% 52% 48% 56% 29% 31% 30% 34% 26% 17% 15% 18% 18% 18% Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Technology Workflows CRM and Industry & Core Business Workflows Creator Workflows & Others
    • 17. 17 © 2025 ServiceNow, Inc. All Rights Reserved. 17 © 2025 ServiceNow, Inc. All Rights Reserved. GAAP Revenues by Geography 63% 64% 62% 64% 62% 25% 25% 27% 25% 26% 12% 11% 11% 11% 12% Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 North America EMEA APAC & Other
    • 18. 18 © 2025 ServiceNow, Inc. All Rights Reserved. 18 © 2025 ServiceNow, Inc. All Rights Reserved. Headcount by Department 917 905 911 859 878 4,063 4,351 4,583 4,749 5,003 8,585 9,008 9,083 9,219 9,271 7,912 8,393 8,583 8,640 8,874 2,992 3,086 3,133 3,231 24,469 3,268 25,743 26,293 26,698 27,294 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 PS & Other Cost of Sales Sub. Cost of Sales S&M R&D G&A
    • 19. 19 © 2025 ServiceNow, Inc. All Rights Reserved. 19 © 2025 ServiceNow, Inc. All Rights Reserved. 15.5% 7.5% 8.5% 4.0% 14.0% 9.5% 11.5% Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FY23 FY24 Non-GAAP Gross Margins Note: All figures are calculated on a non-GAAP basis. See appendix for reconciliation of non-GAAP financial measures. 85.0% 85.0% 84.5% 84.5% 83.0% 84.5% 85.0% Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FY23 FY24 82.5% 82.5% 82.0% 82.0% 81.0% 82.5% 82.5% Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FY23 FY24 Non-GAAP Subscription Gross Margin Non-GAAP PS & Other Gross Margin Non-GAAP Total Gross Margin
    • 20. 20 © 2025 ServiceNow, Inc. All Rights Reserved. 20 © 2025 ServiceNow, Inc. All Rights Reserved. Non-GAAP Operating and Free Cash Flow Margins 13.5% 17.0% 47.5% 48.0% 16.5% 30.5% 31.5% Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FY23 FY24 Non-GAAP Free Cash Flow Margin 27.5% 31.0% 29.5% 31.0% 29.5% 27.5% 29.5% Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FY23 FY24 Non-GAAP Operating Margin Note: All figures are calculated on a non-GAAP basis. See appendix for reconciliation of non-GAAP financial measures.
    • 21. 21 © 2025 ServiceNow, Inc. All Rights Reserved. 21 © 2025 ServiceNow, Inc. All Rights Reserved. Non-GAAP Net Income and Diluted EPS $3.13 $3.72 $3.67 $4.04 $4.09 $10.78 $13.92 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FY23 FY24 $651 $775 $769 $846 $854 $2,215 $2,902 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FY23 FY24 Non-GAAP Net Income ($M) Non-GAAP Diluted EPS Note: All figures are calculated on a non-GAAP basis. See appendix for reconciliation of non-GAAP financial measures.
    • 22. 22 © 2025 ServiceNow, Inc. All Rights Reserved. 22 © 2025 ServiceNow, Inc. All Rights Reserved. GAAP to Non-GAAP Reconciliation and Supplemental Information
    • 23. 23 © 2025 ServiceNow, Inc. All Rights Reserved. 23 GAAP to Non-GAAP Reconciliation – Other Note: Numbers rounded for presentation purposes and may not foot. in millions (except %'s and per share data) 2023 Margin Q1'24 Margin Q2'24 Margin Q3'24 Margin Q4'24 Margin 2024 Margin Q1'25 Margin Q2'25 Margin Q3'25E Margin 2025E Margin GAAP Subscription Gross Profit $ 7,074 81.5% $ 2,082 82.5% $ 2,073 81.5% $ 2,219 81.5% $ 2,330 81.5% $ 8,704 82% $ 2,444 81.5% $ 2,488 80% N/A N/A N/A 80.5% (+) Subscription SBC $ 202 2.5% $ 58 2.5% $ 62 2.5% $ 64 2.5% $ 66 2.5% $ 250 2.5% $ 68 2.5% $ 76 2.5% N/A N/A N/A 2% (+) Subscription Amort of Purchased Intangibles $ 77 1% $ 21 1% $ 21 1% $ 22 1% $ 20 0.5% $ 84 1% $ 20 0.5% $ 23 0.5% N/A N/A N/A 1% (+) Business Combination and Other Related Costs - 0% - 0% - 0% - 0% - 0% - 0% - 0% - 0% N/A N/A N/A 0% (+) Severance Costs - 0% - 0% - 0% - 0% - 0% - 0% - 0% $ 3 0% N/A N/A N/A 0% Non-GAAP Subscription Gross Profit $ 7,353 84.5% $ 2,161 85.5% $ 2,156 85% $ 2,305 85% $ 2,416 84.5% $ 9,038 85% $ 2,532 84.5% $ 2,590 83% N/A N/A N/A 83.5% GAAP Professional Services and Other Gross Profit (Loss) $ (24) (8.5%) $ 1 1% $ 2 2% $ (6) (6.5%) $ (4) (4%) $ (7) (2%) $ (7) (8.5%) $ 3 3% N/A N/A N/A N/A (+) Professional Services and Other SBC $ 52 17.5% $ 12 14.5% $ 12 13.5% $ 11 14% $ 11 12.5% $ 46 13.5% $ 11 13% $ 11 11% N/A N/A N/A N/A (+) Severance Costs - 0% - 0% - 0% - 0% - 0% - 0% - 0% - 0% N/A N/A N/A N/A Non-GAAP Professional Services and Other Gross Profit $ 28 9.5% $ 13 15.5% $ 14 15.5% $ 5 7.5% $ 7 8.5% $ 39 11.5% $ 4 4% $ 14 14% N/A N/A N/A N/A GAAP Gross Profit $ 7,050 78.5% $ 2,083 80% $ 2,075 79% $ 2,213 79% $ 2,326 78.5% $ 8,697 79% $ 2,437 79% $ 2,491 77.5% N/A N/A N/A N/A (+) SBC $ 254 3% $ 70 2.5% $ 74 3% $ 75 2.5% $ 77 2.5% $ 296 2.5% $ 79 2.5% $ 87 2.5% N/A N/A N/A N/A (+) Amort of Purchased Intangibles $ 77 1% $ 21 1% $ 21 1% $ 22 1% $ 20 0.5% $ 84 1% $ 20 0.5% $ 23 0.5% N/A N/A N/A N/A (+) Severance Costs - 0% - 0% - 0% - 0% - 0% - 0% - 0% $ 3 0% N/A N/A N/A N/A Non-GAAP Gross Profit $ 7,381 82.5% $ 2,174 83.5% $ 2,170 82.5% $ 2,310 82.5% $ 2,423 82% $ 9,077 82.5% $ 2,536 82% $ 2,604 81% N/A N/A N/A N/A GAAP Income from Operations $ 762 8.5% $ 332 12.5% $ 240 9% $ 418 15% $ 374 12.5% $ 1,364 12.5% $ 451 14.5% $ 358 11% N/A 14% N/A 14% (+) SBC $ 1,604 18% $ 422 16% $ 444 17% $ 426 15% $ 454 15.5% $ 1,746 16% $ 470 15% $ 499 15.5% N/A 15% N/A 15% (+) Amort of Purchased Intangibles $ 85 1% $ 24 1% $ 24 1% $ 23 1% $ 23 1% $ 94 1% $ 21 0.5% $ 25 1% N/A 1% N/A 1% (+) Business Combination and Other Related Costs $ 38 0.5% $ 13 0.5% $ 12 0.5% $ 4 0% $ 4 0% $ 33 0.5% $ 11 0.5% $ 14 0.5% N/A 0% N/A 0% (+) Impairment of Assets - 0% - 0% - 0% - 0% - 0% - 0% - 0% $ 30 1% N/A N/A N/A 0% (+) Severance Costs - 0% - 0% - 0% - 0% - 0% - 0% - 0% $ 29 1% N/A 0% N/A 0% (+) Legal Settlements - 0% - 0% - 0% - 0% $ 17 0.5% $ 17 0% - 0% - 0% N/A 0% N/A 0% Non-GAAP Income from Operations $ 2,489 27.5% $ 791 30.5% $ 720 27.5% $ 872 31% $ 872 29.5% $ 3,254 29.5% $ 953 31% $ 955 29.5% N/A 30.5% N/A 30.5% GAAP Net Income $ 1,731 19.5% $ 347 13.5% $ 262 10% $ 432 15.5% $ 384 13% $ 1,425 13% $ 460 15% $ 385 12% N/A N/A N/A N/A (+) SBC $ 1,604 18% $ 422 16% $ 444 17% $ 426 15% $ 454 15.5% $ 1,746 16% $ 470 15% $ 499 15.5% N/A N/A N/A N/A (+) Amort of Purchased Intangibles $ 85 1% $ 24 1% $ 24 1% $ 23 1% $ 23 1% $ 94 1% $ 21 0.5% $ 25 1% N/A N/A N/A N/A (+) Business Combination and Other Related Costs $ 38 0.5% $ 13 0.5% $ 12 0.5% $ 4 0% $ 4 0% $ 33 0.5% $ 11 0.5% $ 14 0.5% N/A N/A N/A N/A (+) Impairment of Assets - 0% - 0% - 0% - 0% - 0% - 0% - 0% $ 30 1% N/A N/A N/A N/A (+) Severance Costs - 0% - 0% - 0% - 0% - 0% - 0% - 0% $ 29 1% N/A N/A N/A N/A (+) Legal Settlements - 0% - 0% - 0% - 0% $ 17 0.5% $ 17 0% - 0% - 0% N/A N/A N/A N/A (-) Income Tax Expense Effects Related to the Above Adjustments (1) $ (193) (2%) $ (99) (4%) $ (91) (3.5%) $ (110) (4%) $ (113) (4%) $ (413) (4%) $ (116) (4%) $ (128) (4%) N/A N/A N/A N/A (-) Income Tax benefit from the release of a valuation allowance on the deferred tax asset $ (1,050) (11.5%) - 0% - 0% - 0% - 0% - 0% - 0% - 0% N/A N/A N/A N/A Non-GAAP Net Income $ 2,215 24.5% $ 707 27% $ 651 25% $ 775 27.5% $ 769 26% $ 2,902 26.5% $ 846 27.5% $ 854 26.5% N/A N/A N/A N/A Weighted-Average Shares Used to Compute Net Income per Share - Diluted 206 N/A 208 N/A 208 N/A 209 N/A 209 NA 208 208 209 N/A 209 N/A 210 N/A 210 N/A GAAP Net Income per Share - Diluted $ 8.42 N/A $ 1.67 N/A $ 1.26 N/A $ 2.07 N/A $ 1.83 N/A $ 6.84 N/A $ 2.20 N/A $ 1.84 N/A N/A N/A N/A N/A Non-GAAP Net Income per Share - Diluted $ 10.78 N/A $ 3.41 N/A $ 3.13 N/A $ 3.72 N/A $ 3.67 N/A $ 13.92 N/A $ 4.04 N/A $ 4.09 N/A N/A N/A N/A N/A GAAP Net Cash Provided by Operating Activities $ 3,398 38% $ 1,341 51.5% $ 620 23.5% $ 671 24% $ 1,635 55.5% $ 4,267 39% $ 1,677 54.5% $ 716 22.5% N/A N/A N/A 39% (-) Purchases of Property and Equipment $ (694) (7.5%) $ (135) (5%) $ (262) (10%) $ (202) (7%) $ (253) (8.5%) $ (852) (8%) $ (205) (6.5%) $ (190) (6%) N/A N/A N/A (7%) (+) Cash Paid for Legal Settlements - 0% - 0% - 0% - 0% $ 17 0.5% $ 17 0% - 0% - 0% N/A N/A N/A 0% (+) Business combination and other related costs $ 24 0.5% $ 19 0.5% $ 1 0% $ 2 0% $ 1 0% $ 23 0% $ 5 0% $ 9 0.5% N/A N/A N/A 0% Non-GAAP Free Cash Flow $ 2,728 30.5% $ 1,225 47% $ 359 13.5% $ 471 17% $ 1,400 47.5% $ 3,455 31.5% $ 1,477 48% $ 535 16.5% N/A N/A N/A 32% (1) We use a non-GAAP effective tax rate for evaluating our operating results to provide consistency across reporting periods. Based on our long-term projections, we are using a non-GAAP tax rate of 20% for each of the three months ended June 30, 2025 and 2024. This non-GAAP tax rate could change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate.
    • 24. 24 © 2025 ServiceNow, Inc. All Rights Reserved. 24 Supplemental Information in millions Q1'24 Q2'24 Q3'24 Q4'24 2024 Q1'25 Q2'25 Stock-based compensation Cost of revenues: Subscription $ 58 $ 62 $ 64 $ 66 $ 250 $ 68 $ 76 Professional services and other $ 12 $ 12 $ 11 $ 11 $ 46 $ 11 $ 11 Operating expenses: Sales and marketing $ 134 $ 141 $ 144 $ 146 $ 565 $ 148 $ 155 Research and development $ 159 $ 170 $ 150 $ 176 $ 655 $ 185 $ 196 General and administrative $ 59 $ 59 $ 57 $ 55 $ 230 $ 58 $ 61 Total stock-based compensation $ 422 $ 444 $ 426 $ 454 $ 1,746 $ 470 $ 499 Amortization of purchase intangibles Cost of revenues: Subscription $ 21 $ 21 $ 22 $ 20 $ 84 $ 20 $ 23 Professional services and other $ - $ - $ - $ - $ - $ - $ - Operating expenses: Sales and marketing $ - $ - $ - $ - $ - $ - $ - Research and development $ - $ - $ - $ - $ - $ - $ - General and administrative $ 4 $ 2 $ 1 $ 3 $ 10 $ 1 $ 2 Total amortization of purchase intangibles $ 24 $ 24 $ 23 $ 23 $ 94 $ 21 $ 25 Business combinations and other related costs Cost of revenues: Subscription $ - $ - $ - $ - $ - $ - $ - Professional services and other $ - $ - $ - $ - $ - $ - $ - Operating expenses: Sales and marketing $ - $ - $ - $ 1 $ 1 $ - $ - Research and development $ 11 $ 10 $ 3 $ 2 $ 26 $ 2 $ 2 General and administrative $ 2 $ 2 $ 1 $ 1 $ 6 $ 9 $ 12 Total Business combinations and other related costs $ 13 $ 12 $ 4 $ 4 $ 33 $ 11 $ 14 Legal Settlements Cost of revenues: Subscription $ - $ - $ - $ - $ - $ - $ - Professional services and other $ - $ - $ - $ - $ - $ - $ - Operating expenses: Sales and marketing $ - $ - $ - $ - $ - $ - $ - Research and development $ - $ - $ - $ - $ - $ - $ - General and administrative $ - $ - $ - $ 17 $ 17 $ - $ - Total Legal Settlements $ - $ - $ - $ 17 $ 17 $ - $ - Impairment of assets Cost of revenues: Subscription $ - $ - $ - $ - $ - $ - $ - Professional services and other $ - $ - $ - $ - $ - $ - $ - Operating expenses: Sales and marketing $ - $ - $ - $ - $ - $ - $ - Research and development $ - $ - $ - $ - $ - $ - $ - General and administrative $ - $ - $ - $ - $ - $ - $ 30 Total Impairment of assets $ - $ - $ - $ - $ - $ - $ 30 Severance costs Cost of revenues: Subscription $ - $ - $ - $ - $ - $ - $ 3 Professional services and other $ - $ - $ - $ - $ - $ - $ - Operating expenses: Sales and marketing $ - $ - $ - $ - $ - $ - $ 19 Research and development $ - $ - $ - $ - $ - $ - $ 5 General and administrative $ - $ - $ - $ - $ - $ - $ 2 Total Severance costs $ - $ - $ - $ - $ - $ - $ 29 Note: Numbers rounded for presentation purposes and may not foot.


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