ServiceNow Inc

Strong Financial Performance: ServiceNow reported Q4 subscription revenues of $2.866 billion, growing 21% year-over-year (YoY) in constant currency, and a remaining performance obligation (RPO) of approximately $22.3 billion, representing a 26% YoY increase. 2024 concluded with a free cash flow of $3.5 billion and an overall free cash flow margin of 31.5%, reflecting efficient cash management.

Effective Guidance for 2025: For 2025, the company anticipates subscription revenues between $12.635 billion and $12.675 billion, indicating a 20% growth YoY at midpoint. This reflects a deliberate strategy to incorporate consumption-based pricing for AI services while maintaining a strong base subscription model to ensure predictable revenue streams.

Strategic AI Focus: ServiceNow highlighted its leadership in integrating generative AI with impressive deal growth—150% quarter-over-quarter for AI-driven offerings. The company emphasizes its capability to orchestrate enterprise AI agents, positioning itself advantageously against competitors and capitalizing on the rising demand for AI solutions.