NYSE$NOW
ServiceNow Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
ServiceNow's Q2 2023 financial results were announced, exceeding guidance across topline growth and profitability metrics. The company is raising its 2023 subscription revenues and operating margin guidance.
ServiceNow reported strong Q2 2023 financial results, exceeding guidance for topline growth and profitability. Subscription revenues reached $2,075 million, representing 25% year-over-year growth. Total revenues amounted to $2,150 million, a 23% increase year-over-year. The company is raising its 2023 subscription revenues and operating margin guidance.
- ServiceNow exceeded guidance across all Q2 2023 topline growth and profitability metrics.
- Subscription revenues were $2,075 million in Q2 2023, representing 25% year-over-year growth.
- Total revenues reached $2,150 million in Q2 2023, a 23% increase year-over-year.
- Current remaining performance obligations were $7.20 billion as of Q2 2023, representing 25% year-over-year growth.
Headline financials
Revenue & EPS history
ServiceNow · Revenue · Quarterly
$2.15B
Revenue by segment
ServiceNow · $2.15B total across 2 segments · Q2 2023
- Subscription revenues$2.08B+25.2%96.5%
- Professional services and other$75M-20.2%3.5%
Forward guidance
ServiceNow provided guidance for the third quarter and full year 2023, including subscription revenues and operating margin targets.
Tailwinds
- Third quarter 2023 subscription revenues are expected to be $2,185 - $2,195 million, representing 25.5% - 26% year-over-year growth.
- Third quarter 2023 income from operations margin is expected to be 27%.
- Full-year 2023 subscription revenues are projected to be $8,580 - $8,600 million, representing 24.5% - 25% year-over-year growth.
- Full-year 2023 subscription gross profit margin is expected to be 84%.
- Full-year 2023 income from operations margin is expected to be 26.5%.
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 Q2 2023
+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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