ServiceNow’s Fourth Quarter and Full-Year 2021 Financial Results

"We once again reported results that significantly beat the high end of expectations," said ServiceNow President and CEO Bill McDermott regarding his company’s Q4 performance. "Customer demand for ServiceNow’s innovative platform is stronger than ever. Our unique culture has made us one of the best places to work. We are growing like a fast‑moving startup with the profitability of a global market leader."

Just a few weeks into Q1 of 2022, ServiceNow released their Q4 and full year 2021 financial results, and well, it’s fair to say, McDermott nailed it. As the world’s leading digital workflow company in 2021, they saw massive growth in many of their key areas, and Q4 was no exception. For example, their subscription revenues reached a total of $1,523 million in Q4, making for a growth of 29% year-over-year (30% adjusted for constant currency).

As of December 31, 2021, their current remaining performance obligations (“cRPO”), or contract revenue that will be recognized as revenue in the next 12 months, was $5.7 billion, representing 29% year‑over‑year growth and 32% adjusted for constant currency. ServiceNow was also able to close 135 transactions for new annual contracts valued at over $1 million, demonstrating a whopping growth rate of 52% year‑over‑year. They are also now responsible for 1,359 total customers with more than $1 million in annual contract value, which turns out to be a 25% year‑over‑year growth in customers.

Q4 Improvements to the Now Platform

The numbers are impeccable, but while they are impressive, they only tell half the story. ServiceNow has expanded their Now Platform’s capabilities just as much as their financial results, and in stunning fashion.

At the start of the quarter ServiceNow announced an integrated solution to activate ESG across the enterprise. ServiceNow’s goal with their solution is to provide a real-time view of ESG compliance and risk to help business leaders navigate decision-making and business performance. Delivering governance capabilities like continuous control, risk assessments, AI, audits, privacy, and automation is how they plan to tackle big environmental, social, and business challenges transparently.

Improving customer engagement was also at the forefront of ServiceNow’s Q4 focus. Launching the ServiceNow Messaging Service was key to providing a seamless experience from issue to resolution for both customers and employees. In Q3 the Now Platform saw improvements in the Rome release, enabling the messaging service to get launched in Q4.

Acquisitions were also a cornerstone to ServiceNow’s Q4 growth. Perhaps the most important in Q4 was the DotWalk acquisition. Improving business agility for organizations through means of automation and DotWalk’s artificial intelligence (AI)-powered regression testing will help application performance and will allow customers to quickly achieve their business goals while accelerating digital transformations. In other words, with DotWalk, ServiceNow is looking to help customers remain technologically agile and innovative.

2021 was the second year of a global pandemic, and ServiceNow recognized there is still a lot of stress in the world. To mitigate what they could, they partnered up with Qualtrics to build empathy into customer service. From this partnership, organizations are now able to access additional customer experience data from Qualtrics on the Now Platform via the Qualtrics CustomerXM and ServiceNow Customer Service Management integration. Caring for organizations and their customers is ultimately why ServiceNow continued to grow so much in Q4.

With so many robust improvements to ServiceNow’s repertoire being added every quarter, it’s no wonder they’ve continued to dominate for five years as a Fortune Future 50 company. ServiceNow CFO Gina Mastantuono mentioned they “...expect constant currency subscription revenue growth to accelerate year‑over‑year in Q1, setting us up for another strong year and putting us well on our way to becoming a $15 billion plus revenue company.” The future is bright for the Now platform, and 2022 looks more and more promising.

About GuideVision

GuideVision is a ServiceNow Elite Partner, focusing exclusively on ServiceNow-powered solutions, GuideVision has assembled a strong, international staff of not only technical experts, but expert consultants on human issues such as process and workflow design, as well as organisational change management. In addition, GuideVision is a member of the Infosys family of companies, which provides even greater scale and expertise.

About ServiceNow

ServiceNow (NYSE: NOW) makes the world work better for everyone. Our cloud‑based platform and solutions help digitize and unify organizations so that they can find smarter, faster, better ways to make work flow. So employees and customers can be more connected, more innovative, and more agile. And we can all create the future we imagine. The world works with ServiceNowTM. For more information, visit: www.servicenow.com.

Insight Into ServiceNow’s Q4

For further information on ServiceNow’s Q4 numbers, please see ServiceNow Reports Fourth Quarter and Full-Year 2021 Financial Results. Or, download the PDF ServiceNow Q4 and Full‑Year 2021 complete financial tables.