NYSE$NOW
ServiceNow Inc · Q4 2021 earnings
Q4 2021 earnings · · Investor relations
Briefing
ServiceNow's Q4 2021 earnings exceeded expectations across all metrics, demonstrating strong growth and profitability.
ServiceNow reported strong Q4 2021 results, exceeding the high end of guidance across all metrics. Subscription revenues reached $1,523 million, representing 29% year-over-year growth. The company closed 135 transactions with over $1 million in net new annual contract value, and now has 1,359 total customers with more than $1 million in annual contract value. ServiceNow expects strong 2022 subscription revenues growth with constant currency subscription revenues growth acceleration year-over-year in Q1 2022.
- Subscription revenues reached $1,523 million, a 29% increase year-over-year (30% adjusted for constant currency).
- Current remaining performance obligations (cRPO) totaled $5.7 billion, up 29% year-over-year (32% adjusted for constant currency).
- ServiceNow closed 135 transactions with over $1 million in net new annual contract value, a 52% increase year-over-year.
- The company now has 1,359 customers with over $1 million in annual contract value, representing 25% year-over-year growth in customers.
Headline financials
Revenue & EPS history
ServiceNow · Revenue · Quarterly
$1.61B
Revenue by segment
ServiceNow · $91M total across 1 segment · Q4 2021
- Professional services and other$91M+37.6%100.0%
Forward guidance
ServiceNow provided guidance for Q1 2022 and full-year 2022, including subscription revenues and cRPO growth, and operating margin.
Tailwinds
- Expects constant currency subscription revenue growth to accelerate year-over-year in Q1 2022.
- GAAP Subscription revenues for Q1 2022 are expected to be $1,610 - $1,615 million, representing 25% year-over-year growth.
- Non-GAAP Subscription revenues for Q1 2022 are expected to be $1,645 - $1,650 million, representing 27.5% year-over-year growth.
- For the full year 2022, GAAP subscription revenues are projected to be $7,020 - $7,040 million, a 26% increase year-over-year.
- Non-GAAP subscription revenues for the full year 2022 are projected to be $7,130 - $7,150 million, a 28% increase year-over-year.
Headwinds
- Incremental strengthening of the U.S. dollar resulting in a foreign exchange (“FX”) headwind in 2022 (estimated to be approximately a $110 million currency headwind for 2022 subscription revenue).
- A $75 million currency headwind for Q1 2022 cRPO.
- First Quarter 2022 GAAP operating margin is expected to be 4%.
- First Quarter 2022 Non-GAAP operating margin is expected to be 25%.
- Full-Year 2022 GAAP operating margin is expected to be 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 Q4 2021
+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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