now-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2025


☐			Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number: 001-35580

SERVICENOW, INC.

(Exact name of Registrant as specified in its charter)


Delaware						20-2056195
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

ServiceNow, Inc.

2225 Lawson Lane

Santa Clara, California 95054

(Address, including zip code, of Registrant’s principal executive offices)

(408) 501-8550

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and formal fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common stock, par value $0.001 per share

NOW

The New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Table of Contents

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☒	Accelerated Filer	☐
Non-Accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of March 31, 2025, there were approximately 207 million shares of the Registrant’s Common Stock outstanding.

TABLE OF CONTENTS


		Page
	PART I
Item 1.	Financial Statements	1
	Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024	1
	Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2025 and 2024	2
	Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2025 and 2024	4
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31

	PART II
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 5.	Other Information	33
Item 6.	Exhibits	34
	Signatures

Table of Contents

PART I

ITEM 1. FINANCIAL STATEMENTS

SERVICENOW, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except number of shares which are reflected in thousands and per share data)


	March 31, 2025		December 31, 2024
Assets	(unaudited)
Current assets:
Cash and cash equivalents	$	3,369	$	2,304
Short-term investments	3,228		3,458
Accounts receivable, net	1,359		2,240
Current portion of deferred commissions	533		517
Prepaid expenses and other current assets	781		668
Total current assets	9,270		9,187
Deferred commissions, less current portion	1,012		999
Long-term investments	4,335		4,111
Property and equipment, net	1,885		1,763
Operating lease right-of-use assets	810		693
Intangible assets, net	230		209
Goodwill	1,305		1,273
Deferred tax assets	1,361		1,385
Other assets	764		763
Total assets	$	20,972	$	20,383
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	309	$	68
Accrued expenses and other current liabilities	1,109		1,369
Current portion of deferred revenue	6,737		6,819
Current portion of operating lease liabilities	103		102

Total current liabilities	8,258		8,358
Deferred revenue, less current portion	117		95
Operating lease liabilities, less current portion	806		687
Long-term debt, net	1,490		1,489
Other long-term liabilities	162		145
Total liabilities	10,833		10,774
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 10,000 shares authorized; no shares issued or outstanding	—		—
Common stock, $0.001 par value; shares authorized: 600,000; shares issued: 208,952 and 208,151; shares outstanding: 206,979 and 206,487	—		—
Treasury stock, at cost (shares held: 1,973 and 1,664)	(1,513)		(1,219)
Additional paid-in capital	7,768		7,402
Accumulated other comprehensive loss	(70)		(68)
Retained earnings	3,954		3,494
Total stockholders’ equity	10,139		9,609
Total liabilities and stockholders’ equity	$	20,972	$	20,383

See accompanying notes to condensed consolidated financial statements

Table of Contents

SERVICENOW, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions, except number of shares which are reflected in thousands and per share data)

(unaudited)


	Three Months Ended March 31,
	2025		2024
Revenues:
Subscription	$	3,005	$	2,523
Professional services and other	83		80
Total revenues	3,088		2,603
Cost of revenues(1):
Subscription	561		441
Professional services and other	90		79
Total cost of revenues	651		520
Gross profit	2,437		2,083
Operating expenses(1):
Sales and marketing	1,054		923
Research and development	703		606
General and administrative	229		222

Total operating expenses	1,986		1,751
Income from operations	451		332
Interest income	115		101
Other expense, net	(11)		(8)
Income before income taxes	555		425
Provision for income taxes	95		78
Net income	$	460	$	347

Net income per share - basic	$	2.22	$	1.69
Net income per share - diluted	$	2.20	$	1.67

Weighted-average shares used to compute net income per share - basic	206,820		205,108
Weighted-average shares used to compute net income per share - diluted	209,371		207,684
Other comprehensive loss:
Foreign currency translation adjustments	$	36	$	(30)
Unrealized gains (losses) on investments, net of tax	14		(13)

Unrealized (losses) gains on derivative instruments, net of tax	(52)		12
Other comprehensive loss	(2)		(31)
Comprehensive income	$	458	$	316

(1)Includes stock-based compensation as follows:

Table of Contents


	Three Months Ended March 31,
	2025		2024
Cost of revenues:
Subscription	$	68	$	58
Professional services and other	11		12
Operating expenses:
Sales and marketing	148		134
Research and development	185		159
General and administrative	58		59

See accompanying notes to condensed consolidated financial statements

Table of Contents

SERVICENOW, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in millions, except number of shares which are reflected in thousands)

(unaudited)


	Three Months Ended March 31, 2025
	Common Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
Balance at beginning of the period	208,151	$	—	(1,664)	$	(1,219)	$	7,402	$	3,494	$	(68)	$	9,609
Common stock and Treasury stock issued under employee stock plans	801	—		7	4		149		—		—		153
Common stock repurchased	—	—		(316)	(298)		—		—		—		(298)
Taxes paid related to net share settlement of equity awards	—	—		—	—		(253)		—		—		(253)
Stock-based compensation	—	—		—	—		470		—		—		470
Other comprehensive loss, net of tax	—	—		—	—		—		—		(2)		(2)
Net income	—	—		—	—		—		460		—		460
Balance at end of the period	208,952	$	—	(1,973)	$	(1,513)	$	7,768	$	3,954	$	(70)	$	10,139

Three Months Ended March 31, 2024

Common Stock

Treasury Stock

Additional
Paid-in
Capital

Retained Earnings

Accumulated
Other
Comprehensive Loss

Total
Stockholders’
Equity

Amount

Balance at beginning of the period

205,619

SEC Form 10-Q filed by ServiceNow Inc.