NYSE$NOW
ServiceNow Inc · Q1 2022 earnings
Q1 2022 earnings · · Investor relations
Briefing
ServiceNow's Q1 2022 earnings exceeded expectations across all metrics, with subscription revenues growing 26% year-over-year and the company raising its 2022 subscription revenues guidance.
ServiceNow reported strong Q1 2022 results, exceeding guidance across all metrics. Subscription revenues grew 26% year-over-year to $1,631 million, and total revenues increased 27% to $1,722 million. The company raised its mid-point of 2022 subscription revenues guidance and expects growth to accelerate year-over-year on a constant currency basis.
- Subscription revenues reached $1,631 million, a 26% year-over-year increase (29% adjusted for constant currency).
- Total revenues amounted to $1,722 million, reflecting a 27% year-over-year growth (29% adjusted for constant currency).
- Current remaining performance obligations (cRPO) stood at $5.69 billion, representing a 29% year-over-year increase (30.5% adjusted for constant currency).
- ServiceNow closed 52 transactions with over $1 million in net new annual contract value (NNACV), a 41% year-over-year growth.
Headline financials
Revenue & EPS history
ServiceNow · Revenue · Quarterly
$1.72B
Revenue by segment
ServiceNow · $1.72B total across 2 segments · Q1 2022
- Subscription revenues$1.63B—94.7%
- Professional services and other$91M+35.8%5.3%
Forward guidance
ServiceNow anticipates subscription revenues between $1,670 million and $1,675 million for Q2 2022, representing a 26% year-over-year growth (29% on a constant currency basis). The company projects a 22% operating margin for Q2 2022. For the full year 2022, ServiceNow expects subscription revenues between $7,025 million and $7,040 million, a 26% year-over-year increase (28.5% on a constant currency basis).
Tailwinds
- Subscription revenues are projected to grow 26% year-over-year in Q2 2022 (29% on a constant currency basis).
- Full-year 2022 subscription revenue growth is expected to be 26% (28.5% on a constant currency basis).
- The company forecasts a 22% operating margin for Q2 2022.
- ServiceNow anticipates continued strong demand.
- Company expects cRPO growth to reaccelerate quarter-over-quarter.
Headwinds
- An incremental strengthening of the U.S. dollar is expected to result in a $130 million currency headwind for 2022 subscription revenues.
- Q2 2022 will experience between 1 and 2 points of increasing headwinds to cRPO growth due to a larger-than-average customer cohort renewing in Q4 2022.
- Macro environment is complex.
- There is a $135 million currency headwind for Q2 2022 cRPO.
- Q3 2022 will experience between 1 and 2 points of increasing headwinds to cRPO growth as the contractual obligations wind down.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2022
+2.7%
Avg return
Earnings day
+2.8%
Avg return
5 days after
+5.9%
Avg return
30 days after
68%
40 / 59 earnings
Positive
+19.0%
Q4 2018
Best reaction
-18.5%
Q4 2015
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -1.2% | -12.2% | -0.9% | |
| Q4 2025 | -5.9% | -15.3% | -16.7% | |
| Q3 2025 | -0.7% | -2.6% | -10.9% | |
| Q2 2025 | +1.9% | +4.6% | +9.2% | |
| Q1 2025 | +15.5% | +16.0% | +23.6% | |
| Q4 2024 | -11.4% | -11.7% | -18.7% | |
| Q3 2024 | +4.2% | +2.9% | +15.5% | |
| Q2 2024 | +8.3% | +4.4% | +8.2% | |
| Q1 2024 | -3.3% | -2.7% | -0.3% | |
| Q4 2023 | +1.8% | +4.5% | +2.3% | |
| Q3 2023 | -0.6% | +2.6% | +21.6% | |
| Q2 2023 | -3.9% | +0.1% | -3.2% | |
| Q1 2023 | +2.7% | +1.8% | +21.5% | |
| Q4 2022 | +4.4% | -0.2% | -4.0% | |
| Q3 2022 | +10.4% | +11.7% | +8.1% | |
| Q2 2022 | +3.2% | +7.3% | +5.2% | |
| Q1 2022 | +10.5% | +6.3% | +4.4% | |
| Q4 2021 | +6.8% | +18.3% | +17.2% | |
| Q3 2021 | +1.6% | +0.8% | -4.0% | |
| Q2 2021 | +0.7% | +0.4% | +8.6% | |
| Q1 2021 | -10.2% | -12.9% | -15.8% | |
| Q4 2020 | +4.1% | +4.9% | +0.2% | |
| Q3 2020 | +2.2% | -4.8% | +5.5% | |
| Q2 2020 | -0.8% | +1.1% | +12.1% | |
| Q1 2020 | +18.8% | +19.8% | +31.1% | |
| Q4 2019 | +8.8% | +9.3% | +3.8% | |
| Q3 2019 | +4.1% | +7.2% | +22.6% | |
| Q2 2019 | -1.8% | -1.8% | -9.6% | |
| Q1 2019 | +7.0% | +11.6% | +10.4% | |
| Q4 2018 | +19.0% | +21.8% | +31.8% | |
| Q3 2018 | -5.0% | -9.7% | -11.6% | |
| Q2 2018 | +4.0% | -3.3% | +4.7% | |
| Q1 2018 | +2.8% | +3.4% | +10.0% | |
| Q4 2017 | +4.2% | +0.5% | +13.7% | |
| Q3 2017 | +0.2% | -0.7% | +1.9% | |
| Q2 2017 | +2.6% | +2.5% | +2.6% | |
| Q1 2017 | +4.5% | +5.2% | +17.5% | |
| Q4 2016 | +6.6% | +7.3% | +9.3% | |
| Q3 2016 | +6.5% | +10.2% | +10.0% | |
| Q2 2016 | +4.1% | +2.4% | +0.2% | |
| Q1 2016 | +16.6% | — | — | |
| Q4 2015 | -18.5% | — | — | |
| Q3 2015 | +4.3% | — | — | |
| Q2 2015 | +3.1% | — | — | |
| Q1 2015 | -9.2% | — | — | |
| Q4 2014 | +8.8% | — | — | |
| Q3 2014 | +6.7% | — | — | |
| Q2 2014 | -1.5% | — | — | |
| Q1 2014 | -9.7% | — | — | |
| Q2 2011 | -3.1% | — | — | |
| Q4 2011 | -3.1% | — | — | |
| Q4 2013 | +11.3% | — | — | |
| Q3 2013 | +7.9% | — | — | |
| Q2 2013 | +7.4% | — | — | |
| Q1 2013 | +16.2% | — | — | |
| Q4 2010 | +0.6% | — | — | |
| Q4 2012 | -8.2% | — | — | |
| Q3 2012 | -2.7% | — | — | |
| Q2 2012 | +7.7% | — | — | |
| Q1 2012 | — | — | — | |
| Q1 2011 | — | — | — | |
| Q3 2011 | — | — | — |
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