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ServiceNow segment results review

ServiceNow segment results

26 days ago
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ServiceNow does not report traditional operating segments (Customer Workflow / Employee Workflow / Creator Workflow are now product suites, not reportable segments). Its primary revenue split is by revenue type (Subscription vs. Professional Services) and by geography, which I've pulled from the 10-K.

ServiceNow Revenue Mix (Annual, $M)

Metric FY22 FY23 FY24
Subscription revenues 6,891 8,539 10,634
Professional services & other 354 280 322
Total revenues 7,245 8,819 10,956
Subscription % of total 95% 97% 97%

ServiceNow Revenue by Geography (FY24, % of total)

Region FY24 FY23
North America 63% 64%
Outside North America 37% 36%

Operating performance context (Annual, $M)

Metric FY21 FY22 FY23 FY24 FY25
Total revenue 5,896 7,245 8,819 10,956 12,069E
Operating income 257 285 555 867 1,114E
Net income 230 325 1,484 1,777 1,792E

Key segment commentary (from FY24 10-K): - Subscription is the dominant segment (~97% of revenue) and grew ~25% YoY in FY24, with cRPO of ~$10.3B (+23% YoY) and 98% subscription renewal rate. - Professional services is intentionally kept small (3% of revenue) as ServiceNow partners with global SIs for implementation. - Direct sales organization drives ~78% of revenue; ~22% comes via the indirect channel. - No customers exceed 10% of revenue; no single customer concentration risk.

about 1 month ago