Key Takeaways:
- EPS beat by 10%
- Revenue beat by 0.6%
- Total revenue: $2.63B, up 22% YoY, up 1% QoQ
- Subscription revenue: $2.542B, up 23% YoY
- Stock price up 13% post-earnings
- Remaining performance obligations (RPO) reached $18.6B, up 31% YoY
- 88 transactions over $1M in net new ACV, up 26% YoY
- NowAssist (AI product) net new ACV doubled quarter-over-quarter
- Current RPO was $8.78B, representing 22.5% YoY growth in constant currency
- Non-GAAP operating margin was over 27%, approximately 250 basis points above guidance
Forward-Looking Statements and Insights:
William McDermott, Chairman & CEO:
“Enterprises are investing in business transformation. They are investing in AI. They are building a new reference architecture for the decades to come. This is the largest, most compelling business opportunity in the world. We are bullish on what’s ahead.”
Gina Mastantuono, CFO:
“We continue to see average contract terms increase with TCV from five plus year deals more than tripling year-over-year. We’re really seeing a meaningful uptick in multiyear duration contracts as customers are really seeing the power of the Now platform and just making longer, more strategic deals.”
