Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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, 2024


☐			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 April 30, 2024, there were approximately 205 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, 2024 and December 31, 2023	1
	Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2024 and 2023	2
	Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2024 and 2023	3
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023	4
	Notes to Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
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)


	March 31, 2024		December 31, 2023
Assets	(unaudited)
Current assets:
Cash and cash equivalents	$	2,056	$	1,897
Short-term investments	3,054		2,980
Accounts receivable, net	1,306		2,036
Current portion of deferred commissions	474		461
Prepaid expenses and other current assets	482		403
Total current assets	7,372		7,777
Deferred commissions, less current portion	930		919
Long-term investments	3,666		3,203
Property and equipment, net	1,450		1,358
Operating lease right-of-use assets	698		715
Intangible assets, net	224		224
Goodwill	1,224		1,231
Deferred tax assets	1,478		1,508
Other assets	502		452
Total assets	$	17,544	$	17,387
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	223	$	126
Accrued expenses and other current liabilities	1,018		1,365
Current portion of deferred revenue	5,700		5,785
Current portion of operating lease liabilities	92		89

Total current liabilities	7,033		7,365
Deferred revenue, less current portion	100		81
Operating lease liabilities, less current portion	693		707
Long-term debt, net	1,488		1,488
Other long-term liabilities	123		118
Total liabilities	9,437		9,759
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; shares authorized: 10,000; no shares issued or outstanding	—		—
Common stock, $0.001 par value; shares authorized: 600,000; shares issued: 206,497 and 205,619; shares outstanding: 205,382 and 204,724	—		—
Treasury stock, at cost (shares held: 1,115 and 895)	(707)		(535)
Additional paid-in capital	6,466		6,131
Accumulated other comprehensive loss	(68)		(37)
Retained earnings	2,416		2,069
Total stockholders’ equity	8,107		7,628
Total liabilities and stockholders’ equity	$	17,544	$	17,387

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,
	2024		2023
Revenues:
Subscription	$	2,523	$	2,024
Professional services and other	80		72
Total revenues	2,603		2,096
Cost of revenues(1):
Subscription	441		354
Professional services and other	79		84
Total cost of revenues	520		438
Gross profit	2,083		1,658
Operating expenses(1):
Sales and marketing	923		823
Research and development	606		492
General and administrative	222		199

Total operating expenses	1,751		1,514
Income from operations	332		144
Interest income	101		60
Other expense, net	(8)		(16)
Income before income taxes	425		188
Provision for income taxes	78		38
Net income	$	347	$	150

Net income per share - basic	$	1.69	$	0.74
Net income per share - diluted	$	1.67	$	0.73

Weighted-average shares used to compute net income per share - basic	205,108		203,385
Weighted-average shares used to compute net income per share - diluted	207,684		204,263
Other comprehensive (loss) income:
Foreign currency translation adjustments	$	(30)	$	13
Unrealized (loss) gain on investments, net of tax	(13)		19

Unrealized gain on derivative instruments, net of tax	12		—
Other comprehensive (loss) income	(31)		32
Comprehensive income	$	316	$	182

(1)Includes stock-based compensation as follows:


	Three Months Ended March 31,
	2024		2023
Cost of revenues:
Subscription	$	58	$	46
Professional services and other	12		14
Operating expenses:
Sales and marketing	134		126
Research and development	159		135
General and administrative	59		60

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, 2024
	Common Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
Balance at December 31, 2023	205,619	$	—	(895)	$	(535)	$	6,131	$	2,069	$	(37)	$	7,628
Common stock and Treasury stock issued under employee stock plans	878	—		5	3		128		—		—		131
Common stock repurchased	—	—		(225)	(175)		—		—		—		(175)
Taxes paid related to net share settlement of equity awards	—	—		—	—		(215)		—		—		(215)
Stock-based compensation	—	—		—	—		422		—		—		422
Other comprehensive loss, net of tax	—	—		—	—		—		—		(31)		(31)
Net income	—	—		—	—		—		347		—		347
Balance at March 31, 2024	206,497	$	—	(1,115)	$	(707)	$	6,466	$	2,416	$	(68)	$	8,107


	Three Months Ended March 31, 2023
	Common Stock			Additional Paid-in Capital	Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2022	202,882	$	—		$	4,796	$	338	$	(102)	$	5,032
Common stock issued under employee stock plans	858	—			117		—		—		117

Taxes paid related to net share settlement of equity awards	—	—			(112)		—		—		(112)
Stock-based compensation	—	—			381		—		—		381
Other comprehensive income, net of tax	—	—			—		—		32		32
Net income	—	—			—		150		—		150
Balance at March 31, 2023	203,740	$	—		$	5,182	$	488	$	(70)	$	5,600

See accompanying notes to condensed consolidated financial statements

Table of Contents

SERVICENOW, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(unaudited)


	Three Months Ended March 31,
	2024		2023
Cash flows from operating activities:
Net income	$	347	$	150
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	130		126

Amortization of deferred commissions	131		106

Stock-based compensation	422		381
Deferred income taxes	28		7




Other	(18)		1
Changes in operating assets and liabilities, net of effect of business combinations:
Accounts receivable	715		619
Deferred commissions	(165)		(159)
Prepaid expenses and other assets	(106)		(64)
Accounts payable	107		(46)
Deferred revenue	(10)		40
Accrued expenses and other liabilities	(240)		(259)
Net cash provided by operating activities	$	1,341	$	902
Cash flows from investing activities:
Purchases of property and equipment	(135)		(165)
Business combinations, net of cash acquired	(194)		—
Purchases of other intangibles	(21)		—
Purchases of investments	(1,605)		(1,222)
Purchases of non-marketable investments	(42)		(30)


Sales and maturities of investments	1,073		880

Other	6		13
Net cash used in investing activities	$	(918)	$	(524)
Cash flows from financing activities:








Proceeds from employee stock plans	131		117
Repurchases of common stock	(175)		—
Taxes paid related to net share settlement of equity awards	(215)		(112)

Net cash (used in) provided by financing activities	$	(259)	$	5
Foreign currency effect on cash, cash equivalents and restricted cash	(4)		1
Net change in cash, cash equivalents and restricted cash	160		384
Cash, cash equivalents and restricted cash at beginning of period	1,904		1,475
Cash, cash equivalents and restricted cash at end of period	$	2,064	$	1,859
Cash, cash equivalents and restricted cash at end of period:
Cash and cash equivalents	$	2,056	$	1,852
Restricted cash included in prepaid expenses and other current assets	8		7

Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows	$	2,064	$	1,859
Supplemental disclosures of other cash flow information:
Interest paid	$	11	$	11
Income taxes paid, net of refunds	21		22
Non-cash investing and financing activities:



Property and equipment included in accounts payable, accrued expenses and other liabilities	89		47

See accompanying notes to condensed consolidated financial statements

Table of Contents

SERVICENOW, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Unless the context requires otherwise, references in this report to “ServiceNow,” the “Company,” “we,” “us,” and “our” refer to ServiceNow, Inc. and its consolidated subsidiaries.

(1) Description of the Business

ServiceNow was founded on a simple premise: to make work flow better. Our intelligent platform, the Now Platform, is a cloud-based solution with embedded artificial intelligence and machine learning capabilities that helps global enterprises across industries, universities and governments unify and digitize their workflows. Our workflow applications built on the Now Platform are organized along four primary areas: Technology, Customer and Industry, Employee and Creator. The products under each of our workflows help customers connect, automate and empower work across systems and silos to enable great outcomes for businesses and great experiences for people. The Now Platform orchestrates work across our customers’ cloud platforms and systems of choice, allowing our customers to get work done regardless of their current and future preferred systems of record and collaboration platforms.

(2) Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by United States (“U.S.”) generally accepted accounting principles (“GAAP”) for complete financial statements due to the permitted exclusion of certain disclosures for interim reporting. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary under GAAP for fair statement of results for the interim periods presented have been included. As a result of displaying amounts in millions, rounding differences may exist in the condensed consolidated financial statements and footnote tables. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for other interim periods or future years. The condensed consolidated balance sheet as of December 31, 2023 is derived from audited consolidated financial statements; however, it does not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on January 25, 2024.

Principles of Consolidation

The accompanying condensed consolidated financial statements have been prepared in conformity with GAAP, and include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Such management estimates and assumptions include, but are not limited to, standalone selling price for each distinct performance obligation included in customer contracts with multiple performance obligations, the period of benefit for deferred commissions, valuation of intangible assets, the useful life of property and equipment and identifiable intangible assets, stock-based compensation expense and income taxes. Actual results could differ from those estimates.

Table of Contents

In January 2024, we completed an assessment of the useful life of our data center equipment and determined we should increase the estimated useful life of data center equipment from four years to five years. This change in accounting estimate was effective beginning fiscal year 2024. Based on the carrying amount of data center equipment included in property and equipment, net as of December 31, 2023, the effect of this change in estimate for the three months ended March 31, 2024, was a reduction in depreciation expense of $29 million and an increase in net income of $23 million, or $0.11 per share basic and diluted.

Significant Accounting Policies

We have incorporated two updates to our significant accounting policies during the quarter ended March 31, 2024. The first is the change in useful life of our data center equipment discussed above and the second is related to our cash flow hedging program initiated to hedge a portion of our forecasted foreign currency denominated revenues as discussed below. There were no other updates to our significant accounting policies disclosed in “Note 2 – Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended December 31, 2023.

Derivative Financial Instruments

Cash flow hedging

We record derivatives at fair value as either assets or liabilities on our condensed consolidated balance sheets. For derivative contracts entered into to hedge a portion of our forecasted foreign currency denominated revenues that are designated and qualify as cash flow hedges, the unrealized gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings as subscription revenues when the hedged transaction affects earnings. Derivatives not designated as hedging instruments are adjusted to fair value through earnings as other expense, net in the period during which changes in fair value occur.

The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. We also formally assess, both at the inception of the hedge, and on an ongoing basis, whether each derivative is highly effective in offsetting changes in cash flows of the hedged item. Fluctuations in the value of the derivative instruments are generally offset by changes in the hedged item; however, if it is determined that a derivative is not highly effective as a hedge or if a derivative ceases to be a highly effective hedge, the Company will discontinue hedge accounting prospectively for the affected derivative.

Concentration of Credit Risk and Significant Customers

Credit risk arising from accounts receivable is mitigated to a certain extent due to our large number of customers and their dispersion across various industries and geographies. We had one customer, a U.S. federal channel partner and systems integrator, that represented 11% of our accounts receivable balance as of March 31, 2024 and 11% of our total revenues for the three months ended March 31, 2024. Based on our periodic credit evaluations, there have been no historical collection concerns with this customer. There were no customers that individually exceeded 10% of our accounts receivable balance as of December 31, 2023 or our total revenues for the three months ended March 31, 2023. For purposes of assessing concentration of credit risk and significant customers, a group of customers under common control or customers that are affiliates of each other are regarded as a single customer.

Table of Contents

(3) Investments

Marketable Debt Securities

The following is a summary of our available-for-sale debt securities recorded within short-term and long-term investments on the condensed consolidated balance sheets (in millions):


	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale debt securities:
Commercial paper	$	337	$	—	$	—	$	337
Corporate notes and bonds	4,050		5		(15)		4,040
Certificates of deposit	63		—		—		63
U.S. government and agency securities	2,206		1		(11)		2,196
Mortgage-backed and asset-backed securities	102		—		(18)		84

Total available-for-sale debt securities	$	6,758	$	6	$	(44)	$	6,720


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale debt securities:
Commercial paper	$	349	$	—	$	—	$	349
Corporate notes and bonds	3,579		10		(13)		3,576
Certificates of deposit	94		—		—		94
U.S. government and agency securities	2,081		3		(6)		2,078
Mortgage-backed and asset-backed securities	102		—		(16)		86

Total available-for-sale debt securities	$	6,205	$	13	$	(35)	$	6,183

As of March 31, 2024, the contractual maturities of our available-for-sale debt securities, excluding those securities classified within cash and cash equivalents on the condensed consolidated balance sheet and mortgage-backed and asset-backed securities that do not have a single maturity, did not exceed 37 months. The fair values of available-for-sale debt securities, by remaining contractual maturity, are as follows (in millions):


	March 31, 2024
Due within 1 year	$	3,054
Due in 1 year through 5 years	3,582
Instruments not due in single maturity	84
Total	$	6,720

As of March 31, 2024 and December 31, 2023, the fair value of available-for-sale debt securities in a continuous unrealized loss position totaled $4,821 million and $3,731 million, respectively, the majority of which has been in a continuous unrealized loss position for less than 12 months. As of March 31, 2024, unrealized losses of $26 million from available-for-sale debt securities are from securities in a continuous unrealized loss position greater than 12 months.

For all available-for-sale debt securities that were in unrealized loss positions, we have determined that it is more likely than not we will hold the securities until maturity or a recovery of the cost basis. Unrealized losses on available-for-sale debt securities were due primarily to changes in market interest rates, and credit-related impairment losses were not material as of March 31, 2024.

Table of Contents

Non-Marketable Equity Investments

As of March 31, 2024 and December 31, 2023, the total amount of non-marketable equity investments in privately held companies included in other assets on our condensed consolidated balance sheets was $288 million and $268 million, respectively. Our non-marketable equity investments are primarily accounted for using the measurement alternative, which measures the investments at cost, minus impairment, if any, plus or minus changes resulting from qualifying observable price changes resulting from the issuance of similar or identical securities in an orderly transaction by the same issuer. Determining whether an observed transaction is similar to a security within our portfolio requires judgment based on the rights and preferences of the securities. Recording upward and downward adjustments to the carrying value of our non-marketable equity investments as a result of observable price changes requires quantitative assessments of the fair value of our non-marketable equity investments using various valuation methodologies and involves the use of estimates. The adjustments made during the three months ended March 31, 2024 and 2023 were immaterial. We classify these fair value measurements as Level 3 within the fair value hierarchy.

(4) Fair Value Measurements

The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of March 31, 2024 (in millions):


	Level 1		Level 2		Total
Cash equivalents:
Money market funds	$	842	$	—	$	842
Commercial paper	—		114		114
Corporate notes and bonds	—		—		—

Deposits	330		—		330
U.S. government and agency securities	—		139		139
Marketable securities:
Commercial paper	—		337		337
Corporate notes and bonds	—		4,040		4,040
Certificates of deposit	—		63		63
U.S. government and agency securities	—		2,196		2,196
Mortgage-backed and asset-backed securities	—		84		84



Total	$	1,172	$	6,973	$	8,145

The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of December 31, 2023 (in millions):


	Level 1		Level 2		Total
Cash equivalents:
Money market funds	$	1,215	$	—	$	1,215
Commercial paper	—		79		79
Corporate notes and bonds	—		2		2

Deposits	295		—		295
U.S. government and agency securities	—		4		4
Marketable securities:
Commercial paper	—		349		349
Corporate notes and bonds	—		3,576		3,576
Certificates of deposit	—		94		94
U.S. government and agency securities	—		2,078		2,078
Mortgage-backed and asset-backed securities	—		86		86

Total	$	1,510	$	6,268	$	7,778

Table of Contents

We determine the fair value of our security holdings based on pricing from our service providers and market prices from industry-standard independent data providers. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs), pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) or using unobservable inputs that are supported by little or no market activity (Level 3 inputs). Our non-marketable equity investments are not included in the table above and are discussed in Note 3. See Note 8 for the fair value measurement of our derivative contracts and Note 10 for the fair value measurement of our long-term debt, which are also not included in the table above. Our marketable equity investments are classified within Level 1 and are immaterial as of March 31, 2024 and December 31, 2023.

(5) Business Combinations

On July 17, 2023, we acquired all outstanding shares of G2K Group GmbH, an artificial intelligence powered platform, for $464 million in a cash transaction. The consideration was paid in two installments, with the first payment made in July 2023 and the second payment made in February 2024. The acquisition is intended to enhance our Now Platform with the acquired smart Internet of Things technology, enabling businesses to intelligently action digital and in-store data with enterprise-grade workflows.

The purchase price was preliminarily allocated based on the estimated fair value of the developed technology intangible asset of $75 million (six-year estimated useful life), net tangible liabilities of $1 million, deferred tax liabilities of $23 million and goodwill of $413 million, which is not deductible for income tax purposes.

Goodwill is primarily attributed to the value expected from synergies resulting from the business combination. The fair values assigned to tangible and intangible assets acquired, liabilities assumed and income taxes payable and deferred taxes are based on management’s estimates and assumptions. The provisional measurements of fair value for certain assets and liabilities may be subject to change as additional information is received. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date.

We have included the financial results of the business combination in the condensed consolidated financial statements from the date of acquisition, which were not material.

(6) Intangible Assets

Intangible assets, net consists of the following (in millions):


	March 31, 2024		December 31, 2023
Developed technology	$	538	$	516
Patents	73		72
Other	11		11
Intangible assets, gross	622		599
Less: accumulated amortization	(398)		(375)
Intangible assets, net	$	224	$	224

The weighted-average useful life of the acquired developed technology for the three months ended March 31, 2024 and 2023 was approximately five years. Amortization expense for intangible assets for the three months ended March 31, 2024 and 2023 was $24 million and $20 million, respectively.

Table of Contents

The following table presents the estimated future amortization expense related to intangible assets held at March 31, 2024 (in millions):


Years Ending December 31,
Remainder of 2024	$	64
2025	68
2026	38
2027	24
2028	19
Thereafter	11
Total future amortization expense	$	224

(7) Property and Equipment

Property and equipment, net consists of the following (in millions):


	March 31, 2024		December 31, 2023
Computer equipment	$	2,254	$	2,136
Computer software	98		96
Leasehold and other improvements	315		292
Furniture and fixtures	90		86

Construction in progress	16		33
Property and equipment, gross	2,773		2,643
Less: Accumulated depreciation	(1,323)		(1,285)
Property and equipment, net	$	1,450	$	1,358

Construction in progress consists of costs primarily related to leasehold and other improvements. Depreciation expense for the three months ended March 31, 2024 and 2023 was $80 million and $81 million, respectively.

(8) Derivative Contracts

Derivatives Designated as Hedging Instruments

We entered into forward contracts to hedge a portion of our forecasted foreign currency denominated revenues during the three months ended March 31, 2024. These forward contracts are recorded at fair value and have maturities of up to 34 months. As of March 31, 2024, we had outstanding cash flow hedges with total notional values of $1.5 billion. We classify cash flows related to our cash flow hedges as operating activities in our condensed consolidated statements of cash flows.

The total gross fair values of derivatives designated as hedging instruments recorded within the condensed consolidated balance sheets were as follows (in millions):


	March 31, 2024
Condensed Consolidated Balance Sheets Location	Fair Value
Prepaid expenses and other current assets	$	11
Other assets	$	5

As of March 31, 2024, we had net derivative gains on our forward contracts of $16 million in accumulated other comprehensive income, of which $11 million is expected to be recognized in subscription revenues within the next 12 months. As of March 31, 2024, there were no net gains or losses recognized in subscription revenues.

To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. We evaluate hedge effectiveness at the inception of the hedge prospectively, and on an ongoing basis both retrospectively and prospectively.

Table of Contents

We report changes in fair value of these cash flow hedges as a component of accumulated other comprehensive income (loss) and subsequently reclassify into earnings in the same period the forecasted transaction affects earnings. There was no ineffectiveness in the Company’s cash flow hedging program for the three months ended March 31, 2024.

Derivatives not Designated as Hedging Instruments

Our derivatives not designated as hedging instruments consist of foreign currency forward contracts that we primarily use to hedge monetary assets and liabilities denominated in non-functional currencies. These foreign currency forward contracts are recorded at fair value and have maturities of 12 months or less. The changes in the fair value of these contracts are recorded in other expense, net on the condensed consolidated statements of comprehensive income. As of March 31, 2024 and December 31, 2023, we had foreign currency forward contracts with total notional values of $2.1 billion and $1.7 billion, respectively, which were not designated as hedging instruments. The gross fair value of these foreign currency forward contracts was immaterial as of March 31, 2024 and December 31, 2023. The gains (losses) recognized for these foreign currency forward contracts from derivatives not designated as hedging instruments were immaterial for each of the three months ended March 31, 2024 and 2023.

All of our foreign currency forward contracts, both designated and not designated as hedging instruments, are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates.

(9) Deferred Revenue and Performance Obligations

Revenues recognized during the three months ended March 31, 2024 and 2023 from amounts included in deferred revenue as of December 31, 2023 and 2022 were $2.2 billion and $1.8 billion, respectively.

Remaining Performance Obligations

Transaction price allocated to remaining performance obligations (“RPO”) represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancellable amounts that will be invoiced and recognized as revenues in future periods. RPO excludes contracts that are billed in arrears, such as certain time and materials contracts, as we apply the “right to invoice” practical expedient under relevant accounting guidance.

As of March 31, 2024, the total non-cancellable RPO under our contracts with customers was $17.7 billion and we expect to recognize revenues on approximately 48% of these RPO over the following 12 months. The majority of the non-current RPO will be recognized over the next 13 to 36 months.

(10) Debt

For each of the periods ended March 31, 2024 and December 31, 2023, the carrying value of our outstanding debt was $1,488 million, net of unamortized debt discount and issuance costs of $12 million.

We consider the fair value of the 2030 Notes at March 31, 2024 and December 31, 2023 to be a Level 2 measurement. The estimated fair value of the 2030 Notes based on the closing trading price per $100, was $1,216 million and $1,236 million at March 31, 2024 and December 31, 2023, respectively.

2030 Notes

In August 2020, we issued 1.40% fixed rate ten-year notes with an aggregate principal amount of $1.5 billion due on September 1, 2030 (the “2030 Notes”). The 2030 Notes were issued at 99.63% of principal and we incurred $13 million for debt issuance costs. The effective interest rate for the 2030 Notes was 1.53% and included interest payable, amortization of debt issuance cost and amortization of debt discount. Interest is payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2021, and the entire outstanding principal amount is due at maturity on September 1, 2030. The 2030 Notes are unsecured obligations and the indentures governing the 2030 Notes contain customary events of default and covenants that, among others and subject to exceptions, restrict our ability to incur or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified properties.

Table of Contents

(11) Accumulated Other Comprehensive Loss

The following tables show the components of accumulated other comprehensive loss, net of tax, in the stockholders’ equity section of our condensed consolidated balance sheets (in millions):


	Unrealized Gains (Losses) on Derivative Instruments		Unrealized Gains (Losses) on Investments		Foreign Currency Translation Adjustment		Total

Balance as of December 31, 2023	$	—	$	(39)	$	2	$	(37)
Other comprehensive income (loss) before reclassifications	12		(13)		(30)		(31)
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		—		—
Net current period other comprehensive income (loss)	12		(13)		(30)		(31)
Balance as of March 31, 2024	$	12	$	(52)	$	(28)	$	(68)


	Unrealized Gains (Losses) on Derivative Instruments		Unrealized Gains (Losses) on Investments		Foreign Currency Translation Adjustment		Total

Balance as of December 31, 2022	$	—	$	(77)	$	(25)	$	(102)
Other comprehensive income before reclassifications	—		19		13		32
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		—		—
Net current period other comprehensive income	—		19		13		32
Balance as of March 31, 2023	$	—	$	(58)	$	(12)	$	(70)

(12) Stockholders' Equity

Common Stock

We are authorized to issue a total of 600 million shares of common stock as of March 31, 2024. Holders of our common stock are not entitled to receive dividends unless declared by our board of directors. As of March 31, 2024, we had 205.4 million shares of common stock, net of treasury stock, outstanding and had reserved shares of common stock for future issuance as follows (in thousands):


			March 31, 2024
Stock plans:
Options outstanding			1,146
RSUs(1)			7,615
Shares of common stock available for future grants:
Amended and Restated 2021 Equity Incentive Plan(2)			9,657
Amended and Restated 2012 Employee Stock Purchase Plan(2)			8,246

Total shares of common stock reserved for future issuance			26,664

(1)Represents the number of shares issuable upon settlement of outstanding restricted stock units (“RSUs”) and performance-based RSUs (“PRSUs”), as discussed in Note 13.

(2)Refer to Note 13 for a description of these plans.

During each of the three months ended March 31, 2024 and 2023, we issued a total of 0.9 million shares from stock option exercises, vesting of RSUs, net of employee payroll taxes, and purchases from the employee stock purchase plan (“ESPP”).

Table of Contents

Treasury Stock

In May 2023, our board of directors authorized a program to repurchase up to $1.5 billion of our common stock (the “Share Repurchase Program”). Under this new program, we may repurchase our common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions. The Share Repurchase Program does not have a fixed expiration date, may be suspended or discontinued at any time, and does not obligate us to acquire any amount of common stock. The timing, manner, price, and amount of any repurchases will be determined by us at our discretion and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations.

During the three months ended March 31, 2024, the Company repurchased 0.2 million shares of its common stock for $175 million. All repurchases were made in open market transactions. Repurchases of common stock are recognized as treasury stock and held for future issuance. As of March 31, 2024, approximately $787 million of the originally authorized amount under the Share Repurchase Program remained available for future repurchases.

(13) Equity Awards

We currently have three equity incentive plans: 2012 Equity Incentive Plan (the “2012 Plan”), amended and restated 2021 Equity Incentive Plan (the “2021 Plan”) and 2022 New-Hire Equity Incentive Plan (the “2022 Plan”). The 2012 Plan was terminated in connection with the initial approval of the 2021 Plan on June 7, 2021 but continues to govern the terms of outstanding equity awards that were granted prior to the termination of the 2012 Plan. As of June 7, 2021, we no longer grant equity awards pursuant to the 2012 Plan. The 2021 Plan, as amended and restated, was approved by the shareholders on June 1, 2023 to increase shares available for future grants by approximately 10 million shares. Upon effectiveness of the 2021 Plan, as amended and restated, the 2022 Plan was terminated, and no additional awards under the 2022 Plan have been made since the amendment and restatement of the 2021 Plan. Outstanding equity awards under the 2022 Plan continue to be subject to the terms and conditions of the 2022 Plan.

The 2021 Plan and the 2012 Plan provide for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, RSUs, performance-based stock awards and other forms of equity compensation (collectively, “equity awards”). The 2022 Plan permits the grant of any of the foregoing awards with the exception of incentive stock options. In addition, the 2022 Plan, the 2021 Plan and the 2012 Plan provide for the grant of performance cash awards. Incentive stock options may be granted only to employees. All other equity awards may be granted to employees, including officers, as well as directors and consultants.

Our Amended and Restated 2012 Employee Stock Purchase Plan (the “2012 ESPP”) authorizes the issuance of shares of common stock pursuant to purchase rights granted to our employees. The price at which common stock is purchased under the 2012 ESPP is equal to 85% of the fair market value of our common stock on the first or last day of the offering period, whichever is lower. Offering periods are six months long and begin on February 1 and August 1 of each year. The number of shares of common stock reserved for issuance will not be increased without shareholder approval.

Table of Contents

Stock Options

A summary of stock option activity for the three months ended March 31, 2024 was as follows:


	Number of Shares	Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
	(in thousands)			(in years)	(in millions)
Outstanding at December 31, 2023	1,150	$	603.30


Exercised	(4)	$	80.11		$	2
Forfeited	—	$	84.97
Outstanding at March 31, 2024	1,146	$	605.06	7.2	$	180




Vested and expected to vest as of March 31, 2024	964	$	591.47	7.1	$	165
Vested and exercisable as of March 31, 2024	173	$	247.92	5.1	$	89

Aggregate intrinsic value represents the difference between the estimated fair value of our common stock and the exercise price of outstanding, in-the-money options.

The total fair value of stock options vested during the three months ended March 31, 2024 was $6 million. No stock options were granted during the three months ended March 31, 2024.

As of March 31, 2024, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options was $21 million. The weighted-average remaining vesting period of unvested stock options at March 31, 2024 was approximately one year.

RSUs

A summary of RSU activity for the three months ended March 31, 2024 was as follows:


	Number of Shares	Weighted-Average Grant-Date Fair Value Per Share
	(in thousands)
Outstanding at December 31, 2023	6,262	$	506.77
Granted	2,385	$	776.39
Vested	(895)	$	497.53
Forfeited	(137)	$	524.91
Outstanding at March 31, 2024	7,615	$	591.99




Expected to vest as of March 31, 2024	6,652

RSUs outstanding as of March 31, 2024 were comprised of 7.1 million RSUs with only service conditions and 0.5 million RSUs with both service and performance conditions, including certain RSUs with additional market conditions. The total intrinsic value of the RSUs vested was $0.7 billion for the three months ended March 31, 2024. As of March 31, 2024, the aggregate intrinsic value of RSUs outstanding was $5.8 billion and RSUs expected to vest was $5.1 billion.

Table of Contents

PRSUs with service, performance and market vesting criteria are considered as eligible to vest when approved by the compensation committee of our board of directors in January of the year following the performance period. The ultimate number of shares eligible to vest for PRSUs range from 0% to 200% of the target number of shares depending on achievement relative to the performance metrics and, for certain PRSUs, depend on our total shareholder return relative to that of the S&P 500 index over the applicable measurement period. The eligible shares subject to PRSUs granted during the three months ended March 31, 2024 will vest in one to three years contingent on each holder’s continuous status as a service provider on the applicable vesting dates. The number of PRSUs granted included in the table above reflects the shares that could be eligible to vest at 100% of target for PRSUs and includes adjustments for over or under achievement for PRSUs granted in the prior year. We recognized $39 million and $35 million of stock-based compensation, net of actual and estimated forfeitures, associated with PRSUs on a graded vesting basis during the three months ended March 31, 2024 and 2023, respectively.

As of March 31, 2024, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested RSUs was $3.6 billion, and the weighted-average remaining vesting period was approximately three years.

(14) Net Income Per Share

Basic net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for the effects of dilutive shares of common stock, which are comprised of outstanding stock options, RSUs and ESPP obligations. Stock awards with performance or market conditions are included in dilutive shares to the extent all conditions are met. The potentially dilutive shares of common stock are computed using the treasury stock method or the as-if converted method, as applicable. The effects of outstanding stock options, RSUs and ESPP obligations are excluded from the computation of diluted net income per share in periods in which the effect would be antidilutive.

The following table presents the calculation of basic and diluted net income per share attributable to common stockholders (in millions, except for number of shares reflected in thousands and per share data):


	Three Months Ended March 31,
	2024		2023
Numerator:
Net income	$	347	$	150
Denominator:
Weighted-average shares outstanding - basic	205,108		203,385
Weighted-average effect of potentially dilutive securities:
Common stock options	132		109
RSUs	2,418		769
ESPP obligations	26		—






Weighted-average shares outstanding - diluted	207,684		204,263
Net income per share - basic	$	1.69	$	0.74
Net income per share - diluted	$	1.67	$	0.73
Common stock options, RSUs and ESPP obligations excluded from diluted net income per share because their effect would have been anti-dilutive	3,168		7,731

Table of Contents

(15) Provision for Income Taxes

We compute our provision for income taxes by applying the estimated annual effective tax rate to year-to-date income from recurring operations and adjust the provision for discrete tax items recorded in the period.

Our income tax provision was $78 million for the three months ended March 31, 2024. The income tax provision was primarily attributable to the mix of earnings and losses in countries with differing statutory tax rates, offset by excess tax benefits of stock-based compensation.

Our income tax provision was $38 million for the three months ended March 31, 2023. The income tax provision was primarily attributable to the mix of earnings and losses in countries with differing statutory tax rates and the valuation allowance in the United States.

We regularly assess the need for a valuation allowance against our deferred tax assets. In making that assessment, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. As of June 30, 2023, we achieved cumulative U.S. income during the prior twelve quarters when considering pre-tax income adjusted for permanent differences and other comprehensive losses. Based on all available positive and negative evidence, having demonstrated sustained profitability which is objective and verifiable, and taking into account anticipated future earnings, we concluded it is more likely than not that our U.S. federal and state deferred tax assets will be realizable, with the exception of California. As of March 31, 2024, we continue to maintain a valuation allowance against our California deferred tax assets due to the uncertainty regarding realizability of these deferred tax assets as they have not met the “more likely than not” realization criteria, particularly as we expect research and development tax credit generation to exceed our ability to use the credits in future years. We will continue to monitor the need for a valuation allowance against our deferred tax assets on a quarterly basis.

We are subject to taxation in the United States and foreign jurisdictions. As of March 31, 2024, our tax years 2004 to 2023 remain subject to examination in most jurisdictions.

Due to differing interpretations of tax laws and regulations, tax authorities may dispute our tax filing positions. We periodically evaluate our exposures associated with our tax filing positions and believe that adequate amounts have been reserved for adjustments that may result from tax examinations.

(16) Commitments and Contingencies

Operating Leases

For some of our offices and data centers, we have entered into non-cancellable operating lease agreements with various expiration dates through 2035. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into our determination of lease payments.

Total operating lease costs were $33 million and $31 million, excluding short-term lease costs, variable lease costs and sublease income, each of which were immaterial, for the three months ended March 31, 2024 and 2023, respectively.

For each of the three months ended March 31, 2024 and 2023, total cash paid for amounts included in the measurement of operating lease liabilities was $19 million. Operating lease liabilities arising from obtaining operating right-of-use assets totaled $11 million and $24 million for the three months ended March 31, 2024 and 2023, respectively.

As of March 31, 2024, the weighted-average remaining lease term is approximately nine years, and the weighted-average discount rate is 4%.

Table of Contents

Maturities of operating lease liabilities as of March 31, 2024 are presented in the table below (in millions):



Remainder of 2024	$	92
2025	128
2026	105
2027	90
2028	86
Thereafter	422
Total operating lease payments	923
Less: imputed interest	(138)
Present value of operating lease liabilities	$	785

In addition to the amounts above, as of March 31, 2024, we have operating leases, primarily for offices, that have not yet commenced with undiscounted cash flows of $60 million. These operating leases are expected to commence between 2024 and 2025 with lease terms of two to ten years.

Other Commitments

Other contractual commitments consist of data center and IT operations and sales and marketing activities related to our daily business operations. There were no material contractual obligations that were entered into during the three months ended March 31, 2024 that were outside the ordinary course of business. During 2022, we entered into a non-cancellable, $500 million agreement with Microsoft to purchase cloud services over five years, as we accelerate Azure adoption for mutual customers.

In addition to the amounts above, the repayment of our 2030 Notes with an aggregate principal amount of $1.5 billion is due on September 1, 2030. Refer to Note 10 for further information regarding our 2030 Notes.

Further, $57 million of unrecognized tax benefits have been recorded as liabilities as of March 31, 2024.

Legal Proceedings

We are party to certain litigation and other legal proceedings. While legal proceedings are inherently unpredictable and subject to uncertainties, we do not believe the ultimate resolution of any such proceedings is likely to result in a material loss. We accrue for loss contingencies when it is both probable that we will incur the loss and when we can reasonably estimate the amount of the loss or range of loss.

On July 5, 2022, InQuisient Inc. (“Plaintiff”) filed a complaint against ServiceNow, Inc. in the U.S. District Court for the District of Delaware, alleging the Now Platform’s use of relational databases infringes three of Plaintiff’s patents. Plaintiff is seeking injunctive relief and unspecified damages. The Company filed an answer denying Plaintiff’s allegations and asserts Plaintiff’s patents are, among other things, invalid, not infringed and otherwise unenforceable. A trial date has been set for January 27, 2025. While the Company continues to vigorously defend this matter, we cannot predict the outcome with any degree of certainty. We are unable to reasonably estimate the possible loss or range of loss, if any.

Any adverse determination related to intellectual property claims or other litigation could prevent us from offering our services and adversely affect our financial condition and results of operations. For additional information regarding intellectual property litigation, see “Risk Factors—Lawsuits by third parties that allege we infringe their intellectual property rights could harm our business and operating results” and “Risk Factors—Our intellectual property protections may not provide us with a competitive advantage, and defending our intellectual property may result in substantial expenses that harm our operating results” included in our Annual Report on Form 10-K for the year ended December 31, 2023.

Other

Through its internal processes, the Company received a complaint that raised potential compliance issues during the procurement process related to one of its government contracts. In response, the Company initiated an internal investigation, with the assistance of outside legal counsel, into the validity of these claims. The investigation is ongoing, and the Company cannot predict the timing, outcome or possible impact of the investigation.

Table of Contents

Indemnification Provisions

Our agreements include provisions indemnifying customers against intellectual property and other third-party claims. In addition, we have entered into indemnification agreements with our directors, executive officers and certain other officers that will require us, among other things, to indemnify them against certain liabilities that may arise as a result of their affiliation with us. We have not incurred any costs as a result of such indemnification obligations and have not recorded any liabilities related to such obligations in the condensed consolidated financial statements.

(17) Information about Geographic Areas and Products

Revenues by geographic area, based on the location of our users, were as follows for the periods presented (in millions):


	Three Months Ended March 31,
	2024		2023
North America(1)	$	1,637	$	1,344
EMEA(2)	676		532
Asia Pacific and other	290		220
Total revenues	$	2,603	$	2,096

Property and equipment, net by geographic area were as follows (in millions):


	March 31, 2024		December 31, 2023
North America(3)	$	928	$	871
EMEA(2)	338		312
Asia Pacific and other	184		175
Total property and equipment, net	$	1,450	$	1,358

(1)Revenues attributed to the United States were 94% of North America revenues for each of the three months ended March 31, 2024 and 2023.

(2)Europe, the Middle East and Africa (“EMEA”).

(3)Property and equipment, net attributed to the United States were 78% and 79% of property and equipment, net attributable to North America as of March 31, 2024 and December 31, 2023, respectively.

Subscription revenues consist of the following (in millions):


	Three Months Ended March 31,
	2024		2023
Digital workflow products	$	2,231	$	1,790
ITOM products	292		234
Total subscription revenues	$	2,523	$	2,024

Our digital workflow products include most of our product offerings and are generally priced on a per user basis. Our remaining product offerings, primarily comprised of our IT Operations Management (“ITOM”) products, are predominantly priced on a subscription unit basis.

Table of Contents

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition, results of operations and cash flows should be read in conjunction with the (1) unaudited condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q, and (2) the audited consolidated financial statements and notes thereto and management’s discussion and analysis of financial condition and results of operations for the year ended December 31, 2023 included in the Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), on January 25, 2024. This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are often identified by the use of words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,” or “continue,” and similar expressions or variations. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to those identified herein, and those discussed in the section titled “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K filed with the SEC on January 25, 2024 and in Part II, Item 1A of this Quarterly Report on Form 10-Q and in our other SEC filings. We disclaim any obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

Investors and others should note that we announce material financial information to our investors using our investor relations website (https://www.servicenow.com/company/investor-relations.html), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media, to communicate with our investors and the public about our Company, our services and other issues. It is possible that the information we post on social media could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our Company to review the information we post on the social media channels listed on our investor relations website.

Our free cash flow measure included in the section entitled “Key Business Metrics—Free Cash Flow,” is not in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). This non-GAAP financial measure is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. This measure may be different from non-GAAP financial measures used by other companies, limiting its usefulness for comparison purposes. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP results, to more fully understand our business.

Overview

ServiceNow was founded on a simple premise: to make work flow better. Our purpose is to make the world work better for everyone. Our intelligent platform, the Now Platform, is a cloud-based solution with embedded artificial intelligence and machine learning capabilities that helps global enterprises across industries, universities and governments unify and digitize their workflows. The Now Platform automates workflows across an entire enterprise by connecting disparate departments, systems and silos in a seamless way to unlock productivity and improve experiences for both employees and customers. Our workflow applications built on the Now Platform are organized along four primary areas: Technology, Customer and Industry, Employee and Creator. The transformation to digital operations, enabled by the Now Platform, increases our customers’ resiliency and security and delivers great experiences and additional value to their C-suite, employees and consumers.

We are closely monitoring the Russian invasion of Ukraine and the current armed conflict in Israel and the Gaza Strip. While these events are still evolving and the outcomes remain highly uncertain, we do not believe these conflicts will have a material impact on our business and results of operations. However, if the conflicts continue or worsen, leading to greater global economic disruptions and uncertainty, our business and results of operations could be materially impacted. Our customers in these regions represented an immaterial portion of our net assets as of March 31, 2024 and December 31, 2023, and of our total consolidated revenues for each of the three months ended March 31, 2024 and 2023.

Table of Contents

Additionally, other macroeconomic events, including higher interest rates, global inflation and bank failures, have led to economic uncertainty in the global economy. To mitigate risk, our cash and cash equivalents are distributed across several large financial institutions and are not concentrated in one financial institution. We have not experienced any impact to our liquidity or to our current and projected business operations and financial condition due to recent macroeconomic events. Further, we have policy restrictions on the types of securities that can be purchased as part of our available-for-sale debt securities portfolio. These restrictions take industry and company concentration limits into consideration among other things. Furthermore, the majority of our non-marketable equity investments do not have material relationships with any one financial institution, and therefore, we believe that our exposure to loss as a result of bank failure is immaterial. We will continue to monitor the direct and indirect impact of macroeconomic events on our business and financial results.

See the “Risk Factors” section in Part I, Item 1A of our Annual Report on Form 10-K filed with the SEC on January 25, 2024 for further discussion of the possible impact of conflicts and macroeconomic events on our business and financial results.

Key Business Metrics

Remaining performance obligations. Transaction price allocated to remaining performance obligations (“RPO”) represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancellable amounts that will be invoiced and recognized as revenue in future periods. RPO excludes contracts that are billed in arrears, such as certain time and materials contracts, as we apply the “right to invoice” practical expedient under relevant accounting guidance. Current remaining performance obligations (“cRPO”) represents RPO that will be recognized as revenue in the next 12 months.

As of March 31, 2024, our RPO was $17.7 billion, of which 48% represented cRPO. RPO and cRPO increased by 26% and 21%, respectively, compared to March 31, 2023. Factors that may cause our RPO to vary from period to period include the following:

•Foreign currency exchange rates. While a majority of our contracts have historically been in U.S. Dollars, an increasing percentage of our contracts in recent periods has been in foreign currencies, particularly the Euro and British Pound Sterling. Fluctuations in foreign currency exchange rates as of the balance sheet date will cause variability in our RPO.

•Mix of offerings. In a minority of cases, we allow our customers to host our software by themselves or through a third-party service provider. In self-hosted offerings, we recognize a portion of the revenue upfront upon the delivery of the software and as a result, such revenue is excluded from RPO.

•Subscription start date. From time to time, we enter into contracts with a subscription start date in the future and these amounts are included in RPO if such contracts are signed by the balance sheet date.

•Timing of contract renewals. While customers typically renew their contracts at the end of the contract term, from time to time, customers may do so either before or after the scheduled expiration date. For example, in cases where we are successful in selling additional products or services to an existing customer, a customer may decide to renew its existing contract early to ensure that all its contracts expire on the same date. In other cases, prolonged negotiations or other factors may result in a contract not being renewed until after it has expired.

•Contract duration. While we typically enter into multi-year subscription services, the duration of our contracts varies. Further, we continue to see an increase in the number of 12-month agreements entered into with the U.S. federal government throughout the year, with the highest number of agreements entered into in the quarter ended September 30, driven primarily by timing of their annual budget expenditures. We sometimes also enter into contracts with durations that have a 12-month or shorter term to enable the contracts to co-terminate with the existing contract. The contract duration will cause variability in our RPO.

Table of Contents

Number of customers with ACV greater than $1 million. We count the total number of customers with annual contract value (“ACV”) greater than $1 million as of the end of the period. We had 1,933 and 1,687 customers with ACV greater than $1 million as of March 31, 2024 and 2023, respectively. For purposes of customer count, a customer is defined as an entity that has a unique Dunn & Bradstreet Global Ultimate (“GULT”) Data Universal Numbering System (“DUNS”) number and an active subscription contract as of the measurement date. The DUNS number is a global standard for business identification and tracking. We make exceptions for holding companies, government entities and other organizations for which the GULT, in our judgment, does not accurately represent the ServiceNow customer. For example, while all U.S. government agencies roll up to “Government of the United States” under the GULT, we count each government agency that we contract with as a separate customer. Our customer count is subject to adjustments for acquisitions, spin-offs and other market activity; accordingly, we restate previously disclosed number of customers with ACV greater than $1 million calculations to allow for comparability. ACV is calculated based on the foreign exchange rate in effect at the time the contract was signed. Foreign exchange rate fluctuations could cause some variability in the number of customers with ACV greater than $1 million. We believe information regarding the total number of customers with ACV greater than $1 million provides useful information to investors because it is an indicator of our growing customer base and demonstrates the value customers are receiving from the Now Platform.

Free cash flow. We define free cash flow, a non-GAAP financial measure, as GAAP net cash provided by operating activities plus cash outflows for legal settlements, repayments of convertible senior notes attributable to debt discount and business combination and other related costs including compensation expense, reduced by purchases of property and equipment. Purchases of property and equipment are otherwise included in cash used in investing activities under GAAP. We believe information regarding free cash flow provides useful information to investors because it is an indicator of the strength and performance of our business operations. However, our calculation of free cash flow may not be comparable to similar measures used by other companies. A calculation of free cash flow is provided below:


	Three Months Ended March 31,				% Change
	2024		2023

	(dollars in millions)
Free cash flow:
Net cash provided by operating activities	$	1,341	$	902	49	%
Purchases of property and equipment	(135)		(165)		(18	%)
Business combination and other related costs	19		—		100	%
Free cash flow	$	1,225	$	737	66	%

We have historically seen higher collections in the quarter ended March 31 due to seasonality in timing of entering into customer contracts, which is significantly higher in the quarter ended December 31. Additionally, we have historically seen higher disbursements in the quarters ended March 31 and September 30 due to payouts under our annual commission plans, purchases under our employee stock purchase plan, payouts under our bonus plans and coupon payments related to our 2030 Notes beginning in 2021.

Renewal rate. We calculate our renewal rate by subtracting our attrition rate from 100%. Our attrition rate for a period is equal to the ACV from customers lost during the period, divided by the sum of (i) the total ACV from all customers that renewed during the period, excluding changes in price or users, and (ii) the total ACV from all customers lost during the period. Accordingly, our renewal rate is calculated based on ACV and is not based on the number of customers that have renewed. Further, our renewal rate does not reflect increased or decreased purchases from our customers to the extent such customers are not lost customers or lapsed renewals. A lost customer is a customer that did not renew an expiring contract and that, in our judgment, will not be renewed. Typically, a customer that reduces its subscription upon renewal is not considered a lost customer. However, in instances where the subscription decrease represents the majority of the customer’s ACV, we may deem the renewal as a lost customer. For our renewal rate calculation, we define a customer as an entity with a separate production instance of our service and an active subscription contract as of the measurement date, instead of an entity with a unique GULT or DUNS number. We adjust our renewal rate for acquisitions, consolidations and other customer events that cause the merging of two or more accounts occurring at the time of renewal. Our renewal rate was 98% for each of the three months ended March 31, 2024 and 2023. As our renewal rate is impacted by the timing of renewals, which could occur in advance of, or subsequent to the original contract end date, period-to-period comparison of renewal rates may not be meaningful.

Table of Contents

Components of Results of Operations

Revenues

Subscription revenues. Subscription revenues are primarily comprised of fees that give customers access to the ordered subscription service for both self-hosted offerings and cloud-based subscription offerings, and related standard and enhanced support and updates, if any, to the subscription service during the subscription term. For our cloud-based offerings, we recognize revenue ratably over the subscription term. For self-hosted offerings, a substantial portion of the sales price is recognized upon delivery of the software, which may cause greater variability in our subscription revenues and subscription gross margin. Pricing includes multiple instances, hosting and support services, data backup and disaster recovery services, as well as future updates, when and if available, offered during the subscription term. We typically invoice our customers for subscription fees in annual increments upon execution of the initial contract or subsequent renewal. Our contracts are generally non-cancellable during the subscription term, though a customer can terminate for breach if we materially fail to perform.

Professional services and other revenues. Our arrangements for professional services are primarily on a time-and-materials basis, and we generally invoice our customers monthly in arrears for the professional services based on actual hours and expenses incurred. Some of our professional services arrangements are on a fixed fee basis. Professional services revenues are recognized as services are delivered. Other revenues primarily consist of fees from customer training delivered on-site or through publicly available classes. Typical payment terms require our customers to pay us within 30 days of invoice.

We sell our subscription services primarily through our direct sales organization. We also sell services through managed service providers and resale partners. We also generate revenues from certain professional services and from training of customers and partner personnel, through both our direct team and indirect channel sales. Revenues from our direct sales organization represented 78% and 79% of our total revenues for the three months ended March 31, 2024 and 2023, respectively. For purposes of calculating revenues from our direct sales organization, revenues from systems integrators and managed services providers are included as part of the direct sales organization.

Seasonality. We have historically experienced seasonality in terms of when we enter into customer agreements. We sign a significantly higher percentage of agreements with new customers, as well as expansion with existing customers, in the fourth quarter of each year. The increase in customer agreements for the fourth quarter is primarily a result of both large enterprise account buying patterns typical in the software industry, which are driven primarily by the expiration of annual authorized budgeted expenditures, and the terms of our commission plans, which incentivize our direct sales organization to meet their annual quotas by December 31. Furthermore, we usually sign a significant portion of these agreements during the last month, and often the last two weeks, of each quarter. This seasonality of entering into customer agreements is sometimes not immediately apparent in our revenues, due to the fact that we recognize subscription revenues from our cloud offering contracts over the term of the subscription agreement, which is generally 12 to 36 months. In addition, we continue to see an increase in the number of 12-month agreements entered into with the U.S. federal government throughout the year, with the highest number of agreements entered into in the third quarter driven primarily by the timing of their annual budget expenditures. This larger mix of contracts with 12-month renewal terms in the third quarter will generally cause variability in our RPO and cRPO in subsequent quarters until they are renewed. Although these seasonal factors may be common in the technology industry, historical patterns should not be considered a reliable indicator of our future sales activity or performance.

Cost of Revenues

Cost of subscription revenues. Cost of subscription revenues consists primarily of expenses related to hosting our services and providing support to our customers. These expenses are comprised of data center capacity costs, which include colocation costs associated with our data centers as well as interconnectivity between data centers, depreciation related to our infrastructure hardware equipment dedicated for customer use, amortization of intangible assets, expenses associated with software, public cloud service costs, IT services and dedicated customer support, personnel-related costs directly associated with data center operations and customer support, including salaries, benefits, bonuses and stock-based compensation and allocated overhead.

Cost of professional services and other revenues. Cost of professional services and other revenues consists primarily of personnel-related costs directly associated with our professional services and training departments, including salaries, benefits, bonuses and stock-based compensation, the costs of contracted third-party partners, travel expenses and allocated overhead.

Table of Contents

Professional services are performed directly by our services team, as well as by contracted third-party partners. Fees paid by us to third-party partners are primarily recognized as cost of revenues as the professional services are delivered. Cost of revenues associated with our professional services engagements contracted with third-party partners as a percentage of professional services and other revenues was 15% and 11% for the three months ended March 31, 2024 and 2023, respectively.

Sales and Marketing

Sales and marketing expenses consist primarily of personnel-related expenses directly associated with our sales and marketing staff, including salaries, benefits, bonuses and stock-based compensation. Sales and marketing expenses also include the amortization of commissions paid to our sales employees, including related payroll taxes and fringe benefits. In addition, sales and marketing expenses include branding expenses, marketing program expenses, which include events such as Knowledge, and costs associated with purchasing advertising and marketing data, software and subscription services dedicated for sales and marketing use and allocated overhead.

Research and Development

Research and development expenses consist primarily of personnel-related expenses directly associated with our research and development staff, including salaries, benefits, bonuses, stock-based compensation and allocated overhead. Research and development expenses also include data center capacity costs, costs associated with outside services contracted for research and development purposes and depreciation of infrastructure hardware equipment that is used solely for research and development purposes.

General and Administrative

General and administrative expenses consist primarily of personnel-related expenses for our executive, finance, legal, human resources, facilities and administrative personnel, including salaries, benefits, bonuses, stock-based compensation, external legal, accounting and other professional services fees, other corporate expenses, amortization of intangible assets and allocated overhead.

Provision for Income Taxes

Provision for income taxes consists of federal, state and foreign income taxes. Our income tax provision for the three months ended March 31, 2024 is primarily attributable to the mix of earnings and losses in countries with differing statutory tax rates, offset by excess tax benefits of stock-based compensation. We continue to maintain a valuation allowance against our California deferred tax assets due to the uncertainty regarding realizability of these deferred tax assets as they have not met the “more likely than not” realization criteria, particularly as we expect research and development tax credit generation to exceed our ability to use the credits in future years.

Comparison of the Three Months Ended March 31, 2024 and 2023

Revenues


	Three Months Ended March 31,				% Change
	2024		2023

	(dollars in millions)
Revenues:
Subscription	$	2,523	$	2,024	25%
Professional services and other	80		72		11%
Total revenues	$	2,603	$	2,096	24%
Percentage of revenues:
Subscription	97%		97%
Professional services and other	3%		3%
Total	100%		100%

Table of Contents

Subscription revenues increased by $499 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily driven by increased purchases by new and existing customers. Included in subscription revenues is $126 million and $95 million of revenues recognized upfront from the delivery of software associated with self-hosted offerings during the three months ended March 31, 2024 and 2023, respectively.

We expect subscription revenues for the year ending December 31, 2024 to increase in absolute dollars and remain relatively flat as a percentage of revenue as we continue to add new customers and existing customers increase their usage of our products compared to the year ended December 31, 2023.

Our expectations for revenues, cost of revenues and operating expenses for the remainder of 2024 are based on the 31-day average of foreign exchange rates for March 31, 2024.

Subscription revenues consist of the following:


	Three Months Ended March 31,				% Change
	2024		2023

	(dollars in millions)
Digital workflow products	$	2,231	$	1,790	25%
ITOM products	292		234		25%
Total subscription revenues	$	2,523	$	2,024	25%

Professional services and other revenues increased by $8 million during the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily due to an increase in services and trainings provided to new and existing customers.

We expect professional services and other revenues for the year ending December 31, 2024 to increase in absolute dollars and to remain relatively flat as a percentage of revenue compared to the year ended December 31, 2023.

Cost of Revenues and Gross Profit Percentage


	Three Months Ended March 31,				% Change
	2024		2023

	(dollars in millions)
Cost of revenues:
Subscription	$	441	$	354	25%
Professional services and other	79		84		(6%)
Total cost of revenues	$	520	$	438	19%
Gross profit (loss) percentage:
Subscription	83%		83%
Professional services and other	1%		(17%)
Total gross profit percentage	80%		79%
Gross profit	$	2,083	$	1,658

Table of Contents

Cost of subscription revenues increased by $87 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily due to increased headcount and increased costs to support the growth of our subscription offerings including costs to support customers in regulated markets. Personnel-related costs including stock-based compensation and overhead expenses increased by $59 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. Expenses associated with software, maintenance, and other costs to support the expansion of our data center capacity increased by $22 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

We expect our cost of subscription revenues for the year ending December 31, 2024 to increase in absolute dollars as we provide subscription services to more customers and increase usage within our customer instances but remain relatively flat as a percentage of revenue compared to the year ended December 31, 2023. We will continue to incur incremental costs to attract customers in regulated markets by adopting public cloud offerings as well as increased support for customers impacted by new and evolving data residency requirements. To the extent future acquisitions are consummated, our cost of subscription revenues may increase due to additional non-cash charges associated with the amortization of intangible assets acquired.

Our subscription gross profit percentage was 83% for each of the three months ended March 31, 2024 and 2023. We expect our subscription gross profit percentage to remain relatively flat for the year ending December 31, 2024 compared to the year ended December 31, 2023.

Cost of professional services and other revenues decreased by $5 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily due to decreased internal headcount resulting in a decrease in fixed personnel-related costs including stock-based compensation, partially offset by an increase in variable contracted third-party partner spend.

Our professional services and other gross profit percentage improved to 1% for the three months ended March 31, 2024 compared to a gross loss percentage of 17% for the three months ended March 31, 2023, primarily due to an increase in revenue and a decrease in fixed personnel-related costs including stock-based compensation, as we execute our strategy to shift a portion of professional services to variable spending with strategic partners. We expect our professional services and other gross profit percentage to improve for the year ending December 31, 2024 compared to the year ended December 31, 2023.

Sales and Marketing


	Three Months Ended March 31,				% Change
	2024		2023

	(dollars in millions)
Sales and marketing	$	923	$	823	12%
Percentage of revenues	35%		39%

Sales and marketing expenses increased by $100 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily due to increased headcount resulting in an increase in personnel-related costs including stock-based compensation and overhead expenses of $61 million. Amortization expenses associated with deferred commissions increased $22 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily due to an increase in contracts with new customers, expansion and renewal contracts. Other sales and marketing program expenses, which include branding, costs associated with purchasing advertising, marketing events and market data, increased by $11 million compared to the prior year, primarily due to increased program costs and travel for our annual Sales Kickoff.

We expect sales and marketing expenses for the year ending December 31, 2024 to increase in absolute dollars and to decrease as a percentage of revenue compared to the year ended December 31, 2023, as we continue to see leverage from increased sales productivity and marketing efficiencies.

Table of Contents

Research and Development


	Three Months Ended March 31,				% Change
	2024		2023

	(dollars in millions)
Research and development	$	606	$	492	23%
Percentage of revenues	23%		23%

Research and development (“R&D”) expenses increased by $114 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily due to increased headcount, resulting in an increase in personnel-related costs including stock-based compensation and overhead expenses of $98 million. The remaining increase was primarily due to an increase in data center capacity costs and depreciation of infrastructure hardware equipment that is used solely for R&D purposes of $7 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

We expect R&D expenses for the year ending December 31, 2024 to increase in absolute dollars but remain relatively flat as a percentage of revenue compared to the year ended December 31, 2023, as we continue to improve the existing functionality of our services, develop new applications to fill market needs and enhance our core platform.

General and Administrative


	Three Months Ended March 31,				% Change
	2024		2023

	(dollars in millions)
General and administrative	$	222	$	199	12%
Percentage of revenues	9%		9%

General and administrative (“G&A”) expenses increased by $23 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily due to an increase in non personnel-related costs and outside services of $15 million. The remaining increase was primarily due to increased headcount, resulting in an increase in personnel-related costs including stock-based compensation of $5 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

We expect G&A expenses for the year ending December 31, 2024 to increase in absolute dollars but decrease slightly as a percentage of revenue compared to the year ended December 31, 2023, as we continue to see leverage from continued G&A productivity.

Table of Contents

Stock-based Compensation


	Three Months Ended March 31,				% Change
	2024		2023

	(dollars in millions)
Cost of revenues:
Subscription	$	58	$	46	26%
Professional services and other	12		14		(14%)
Operating expenses:
Sales and marketing	134		126		6%
Research and development	159		135		18%
General and administrative	59		60		(2%)
Total stock-based compensation	$	422	$	381	11%
Percentage of revenues	16%		18%

Stock-based compensation increased by $41 million for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, primarily due to additional grants to current and new employees.

Stock-based compensation is inherently difficult to forecast due to fluctuations in our stock price. Based upon our stock price as of March 31, 2024, we expect stock-based compensation to continue to increase in absolute dollars for the year ending December 31, 2024 as we continue to issue stock-based awards to our employees, but decrease slightly as a percentage of revenue compared to the year ended December 31, 2023. We expect stock-based compensation as a percentage of revenue to decline over time as we continue to grow.

Foreign Currency Exchange

Our international operations have provided and will continue to provide a significant portion of our total revenues. Revenues outside North America represented 37% and 36% of total revenues for the three months ended March 31, 2024 and 2023, respectively.

We primarily transact in certain foreign currencies for sales outside of the United States. The general weakening of the U.S. Dollar relative to certain major foreign currencies (primarily the Euro and British Pound Sterling) had an immaterial favorable impact on our revenues for the three months ended March 31, 2024.

In addition, because we primarily transact in several foreign currencies for cost of revenues and operating expenses outside of the United States, the general weakening of the U.S. Dollar relative to certain major foreign currencies had an immaterial unfavorable impact on our expenses for the three months ended March 31, 2024.

Interest Income


	Three Months Ended March 31,					% Change
	2024			2023

	(dollars in millions)
Interest income	$	101		$	60	68%
Percentage of revenues	4		%	3%

Interest income increased by $41 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily driven by an increase in investment income from our managed portfolio resulting from higher portfolio balances and an increase in interest rates.

Table of Contents

Other Expense, net


	Three Months Ended March 31,				% Change
	2024		2023
	(dollars in millions)
Interest expense	$	(6)	$	(6)	—%
Other	(2)		(10)		(80%)
Other expense, net	$	(8)	$	(16)	(50%)
Percentage of revenues	—%		(1%)

Other expense, net decreased by $8 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 primarily due to lower losses on equity investments.

To mitigate our risks associated with fluctuations in foreign currency exchange rates, we enter into foreign currency forward contracts with maturities of 12 months or less to hedge a portion of our net outstanding monetary assets and liabilities. These hedging contracts may reduce, but cannot entirely eliminate, the impact of adverse currency exchange rate movements. The gains (losses) recognized for these foreign currency forward contracts in other expense, net were immaterial for the three months ended March 31, 2024 and 2023.

Provision for Income Taxes


	Three Months Ended March 31,				% Change
	2024		2023

	(dollars in millions)
Income before income taxes	$	425	$	188	126%
Provision for income taxes	$	78	$	38	105%
Effective tax rate	18%		20%

The income tax provision was $78 million for the three months ended March 31, 2024. The income tax provision was primarily attributable to the mix of earnings and losses in countries with differing statutory tax rates, offset by excess tax benefits of stock-based compensation.

Table of Contents

Liquidity and Capital Resources

We generate cash inflows from operations primarily from selling subscription services which are generally paid in advance of provisioning services, and cash outflows to develop new services and core technologies that further enhance the Now Platform, engage our customer and enhance their experience, and enable and transform our business operations. Subscription services arrangements typically have a three-year duration, and we have experienced a renewal rate of 98% over the last three years. Cash outflows from operations are principally comprised of the salaries, bonuses, commissions, and benefits for our workforce, licenses and services arrangements that are integral to our business operations and data centers; and operating lease arrangements that underlie our facilities. We have generated positive operating cash flows for more than ten years as we continue to grow our business in pursuit of our business strategy, and we expect to grow our business and generate positive cash flows from operations during 2024. When assessing sources of liquidity, we also include cash and cash equivalents, short-term investments and long-term investments totaling $8.8 billion as of March 31, 2024.

Our working capital requirements are principally comprised of non-contract workforce salaries, bonuses, commissions and benefits and, to a lesser extent, cancellable and non-cancellable licenses and services arrangements that are integral to our business operations and operating lease obligations. Operating lease obligations totaling $923 million are principally associated with leased facilities and have varying maturities with $501 million due over the next five years.

We may repurchase our shares of common stock in the open market, in privately negotiated transactions or by other means, with the objective to return value to our stockholders and manage the dilution from future employee equity grants and employee stock purchase programs. In May 2023, our board of directors authorized a program to repurchase up to $1.5 billion of our common stock. During the quarter ended March 31, 2024, the Company repurchased 0.2 million shares of its common stock for $175 million. All repurchases were made in open market transactions. Repurchases of common stock are recognized as treasury stock and held for future issuance. As of March 31, 2024, approximately $787 million of the originally authorized amount under the Share Repurchase Program remained available for future repurchases.

To grow our business, we also invest in capital and other resources to expand our data centers and enable our workforce, and we acquire technology and businesses to supplement our technology portfolio. Our capital expenditures are typically under cancellable arrangements primarily used to support the installed base and growth of our hosted business. We have also issued long-term debt to finance our business. In August 2020, we issued 1.40% fixed rate ten-year notes with an aggregate principal amount of $1.5 billion due on September 1, 2030 (the “2030 Notes”).

Our free cash flows, together with our other sources of liquidity, are available to service our liabilities as well as our cancellable and non-cancellable arrangements. We anticipate cash flows generated from operations, cash, cash equivalents and investments will be sufficient to meet our liquidity needs for at least the next 12 months. As we look beyond the next 12 months, we seek to continue to grow free cash flows necessary to fund our operations and grow our business. If we require additional capital resources, we may seek to finance our operations from the current funds available or additional equity or debt financing.


	Three Months Ended March 31,
	2024		2023

	(dollars in millions)
Net cash provided by operating activities	$	1,341	$	902
Net cash used in investing activities	$	(918)	$	(524)
Net cash (used in) provided by financing activities	$	(259)	$	5
Net increase in cash, cash equivalents and restricted cash	$	160	$	384

Operating Activities

Net cash provided by operating activities was $1,341 million for the three months ended March 31, 2024 compared to $902 million for the three months ended March 31, 2023. The net increase in operating cash flows was primarily due to higher collections driven by revenue growth.

Table of Contents

Investing Activities

Net cash used in investing activities for the three months ended March 31, 2024 was $918 million compared to $524 million for the three months ended March 31, 2023. The net increase in cash used in investing activities was primarily due to a $194 million increase in business combinations, a $190 million increase in net purchases of investments and a $21 million increase in purchases of other intangible assets, partially offset by a $30 million decrease in purchases of property and equipment.

Financing Activities

Net cash used in financing activities was $259 million for the three months ended March 31, 2024 compared to net cash provided by financing activities of $5 million for the three months ended March 31, 2023. The increase in cash used in financing activities was due to repurchases of common stock of $175 million and a $103 million increase in taxes paid related to net share settlement of equity awards, partially offset by a $14 million increase in proceeds from employee stock plans.

Critical Accounting Policies and Significant Judgments and Estimates

There have been no significant changes to our critical accounting policies and estimates as described in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on January 25, 2024.

ITEM 3. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

Except for the cash flow hedging program initiated during the three months ended March 31, 2024 discussed below, there have been no other changes to our quantitative and qualitative disclosure set forth in Part II, Item 7A in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on January 25, 2024.

Foreign Currency Exchange Risk

To mitigate our risks associated with fluctuations in foreign currency exchange rates, we enter into foreign currency forward contracts to hedge a portion of our net outstanding monetary assets, liabilities and forecasted foreign currency denominated revenues. These foreign currency forward contracts are intended to offset gains or losses related to remeasuring monetary assets and liabilities and to reduce foreign exchange impact on our forecasted revenues. Derivative contracts related to hedging of forecasted revenues are designated as cash flow hedges for accounting purposes. For contracts qualifying as cash flow hedges, the derivative’s gain or loss is initially reported as a component of accumulated other comprehensive income (loss) and subsequently reclassified into earnings in the same period the forecasted transaction affects earnings. For contracts not designated as cash flow hedges for accounting purposes, the derivative’s gain or loss is recognized immediately in earnings within our condensed consolidated statements of comprehensive income.

These foreign currency forward contracts expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. We mitigate this credit risk by transacting with major financial institutions with high credit ratings. While the contract or notional amount is often used to express the volume of foreign currency forward contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed our obligations to the counterparties. We are not required to pledge, and are not entitled to receive, cash collateral related to these derivative instruments. We do not enter into foreign currency forward contracts for trading or speculative purposes. Refer to Note 8 in the notes to our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information.

Table of Contents

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Regulations under the Exchange Act require public companies, including our Company, to maintain “disclosure controls and procedures,” which are defined in Rule 13a-15(e) and Rule 15d-15(e) to mean a company’s controls and other procedures that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our principal executive officer and principal financial officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required or necessary disclosures. In designing and evaluating our disclosure controls and procedures, management recognizes that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. Our Chief Executive Officer and Chief Financial Officer have concluded, based on the evaluation of the effectiveness of the disclosure controls and procedures by our management as of March 31, 2024, that our disclosure controls and procedures were effective at the reasonable assurance level for this purpose.

Changes in Internal Control over Financial Reporting

There were no changes to our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended March 31, 2024 that have materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Table of Contents

PART II

ITEM 1. LEGAL PROCEEDINGS

We are party to certain litigation and other legal proceedings. While legal proceedings are inherently unpredictable and subject to uncertainties, we do not believe that the ultimate resolution of any such proceedings, whether taken individually or in the aggregate, is likely to have a material adverse effect on our business, financial position, results of operations or cash flows.

For additional information regarding legal proceedings, see Note 16 in the notes to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q.

ITEM 1A. RISK FACTORS

The Company’s business, financial condition, results of operations and stock price can be affected by a number of factors, whether currently known or unknown, including those described in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, under the section “Risk Factors.” When any one or more of these risks materialize from time to time, the Company’s business, financial condition, results of operations and stock price can be materially and adversely affected. There have been no material changes to the Company’s risk factors since our Annual Report on Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Share repurchases of the Company’s common stock for the three months ended March 31, 2024 were as follows:


Issuer Purchases of Equity Securities				Total Number of Shares Purchased as Part of Publicly Announced Program (in thousands)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program(1) (in billions)
Period	Total Number of Shares Purchased (in thousands)	Average Price Paid Per Share
January 1 - 31	29	$	776.60	29	$	0.94
February 1 - 29	196	776.63		196	0.79
March 1 - 31	—	—		—	0.79
First Quarter 2024	225	$	776.62	225	$	0.79

(1) On May 16, 2023, the Board of Directors authorized a program to repurchase up to $1.5 billion of the Company’s common stock.

Table of Contents

ITEM 5. OTHER INFORMATION

Rule 10b5-1 Trading Plans

During the quarter ended March 31, 2024, the following directors and Section 16 officers adopted or terminated trading arrangements intended to satisfy the affirmative defense of Rule 10b5-1(c):

•Gina Mastantuono, our Chief Financial Officer, adopted a trading plan on February 27, 2024. The plan, which expires January 31, 2025, provides for the sale of (i) 3,028 shares of our common stock, and (ii) 8.59% of the (gross) shares resulting from the vesting of 6,662 additional (gross) shares of our common stock during the plan period.

•Jacqueline Canney, our Chief People Officer, adopted a trading plan on February 27, 2024. The plan, which expires May 23, 2025, provides for the sale of 100% of the (net) shares resulting from the vesting of 11,924 additional (gross) shares of our common stock during the plan period, subject to adjustment based on the achievement of performance conditions (net shares are net of tax withholding).

•Nick Tzitzon, our Chief Strategy and Corporate Affairs Officer, adopted a trading plan on February 29, 2024. The plan, which expires May 30, 2025, provides for the sale of (i) 2,000 shares of our common stock, and (ii) 100% of the (net) shares resulting from the vesting of 7,992 additional (gross) shares of our common stock during the plan period, subject to adjustment based on the achievement of performance conditions (net shares are net of tax withholding).

•Chris Bedi, our Chief Digital Information Officer, adopted a trading plan on February 29, 2024. The plan, which expires May 20, 2025, provides for the sale of (i) 4,000 shares of our common stock, (ii) 33.34% of the (net) shares resulting from the vesting of 8,766 additional (gross) shares of our common stock during the plan period and (iii) 66.68% of the (net) shares resulting from the vesting of 8,781 additional (gross) shares of our common stock during the plan period, subject to adjustment based on the achievement of performance conditions (net shares are net of tax withholding).

•Kevin McBride, our Chief Accounting Officer, adopted a trading plan on February 29, 2024. The plan, which expires February 14, 2025, provides for the sale of 400 shares of our common stock.

•Russell Elmer, our General Counsel, terminated his trading plan on February 20, 2024, effective immediately. The trading plan previously permitted the sale of 100% of the (net) shares resulting from the vesting of 11,944 additional (gross) shares of our common stock during the plan period (net shares are net of tax withholding).

Table of Contents

ITEM 6. EXHIBITS

EXHIBIT INDEX

Exhibit

Number

Description of Document

Incorporated by Reference

Filed
Herewith

Form

File No.

Exhibit

Filing Date

3.1

Restated Certificate of Incorporation of Registrant, as amended

8-K

001-35580

3.1

6/9/2021

3.2

Restated Bylaws of Registrant

8-K

001-35580

3.2

6/9/2021

31.1

Certification of Periodic Report by Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002

31.2

Certification of Periodic Report by Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002

32.1**

Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2**

Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS

Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH

Inline XBRL Taxonomy Extension Schema Document.

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104

Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

** The certifications on Exhibit 32 hereto are deemed not “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that Section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	SERVICENOW, INC.

Date: May 6, 2024	By:	/s/ William R. McDermott
		William R. McDermott
		Chief Executive Officer
		(Principal Executive Officer)

Date: May 6, 2024	By:	/s/ Gina Mastantuono
		Gina Mastantuono
		Chief Financial Officer
		(Principal Financial Officer)

Date: May 6, 2024	By:	/s/ Kevin McBride
		Kevin McBride
		Chief Accounting Officer
		(Principal Accounting Officer)

EXHIBIT 31.1

CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, William R. McDermott, certify that:

1.I have reviewed this quarterly report on Form 10-Q of ServiceNow, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.



Date: May 6, 2024			/s/ William R. McDermott
			William R. McDermott Chief Executive Officer (Principal Executive Officer)

Exhibit 31.2

CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Gina Mastantuono, certify that:

1.I have reviewed this quarterly report on Form 10-Q of ServiceNow, Inc.;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.



Date: May 6, 2024			/s/ Gina Mastantuono
			Gina Mastantuono Chief Financial Officer (Principal Financial Officer)

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

I, William R. McDermott, Chief Executive Officer of ServiceNow, Inc. (the “Company”), do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

•the Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2024 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

•the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date: May 6, 2024
			/s/ William R. McDermott
			William R. McDermott Chief Executive Officer (Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to ServiceNow, Inc. and will be retained by it and furnished to the Securities and Exchange Commission or its staff upon request.

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

I, Gina Mastantuono, Chief Financial Officer of ServiceNow, Inc. (the “Company”), do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

•the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date: May 6, 2024
			/s/ Gina Mastantuono
			Gina Mastantuono Chief Financial Officer (Principal Financial Officer)

Cover - shares shares in Millions	3 Months Ended
Cover - shares shares in Millions	Mar. 31, 2024	Apr. 30, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-35580
Entity Registrant Name	SERVICENOW, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-2056195
Entity Address, Address Line One	2225 Lawson Lane
Entity Address, City or Town	Santa Clara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95054
City Area Code	408
Local Phone Number	501-8550
Title of 12(b) Security	Common stock, par value $0.001 per share
Trading Symbol	NOW
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Shares of common stock, outstanding (in shares)		205
Entity Central Index Key	0001373715
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 2,056	$ 1,897
Short-term investments	3,054	2,980
Accounts receivable, net	1,306	2,036
Current portion of deferred commissions	474	461
Prepaid expenses and other current assets	482	403
Total current assets	7,372	7,777
Deferred commissions, less current portion	930	919
Long-term investments	3,666	3,203
Property and equipment, net	1,450	1,358
Operating lease right-of-use assets	698	715
Intangible assets, net	224	224
Goodwill	1,224	1,231
Deferred tax assets	1,478	1,508
Other assets	502	452
Total assets	17,544	17,387
Current liabilities:
Accounts payable	223	126
Accrued expenses and other current liabilities	1,018	1,365
Current portion of deferred revenue	5,700	5,785
Current portion of operating lease liabilities	92	89
Total current liabilities	7,033	7,365
Deferred revenue, less current portion	100	81
Operating lease liabilities, less current portion	693	707
Long-term debt, net	1,488	1,488
Other long-term liabilities	123	118
Total liabilities	9,437	9,759
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; shares authorized: 10,000; no shares issued or outstanding	0	0
Common stock, $0.001 par value; shares authorized: 600,000; shares issued: 206,497 and 205,619; shares outstanding: 205,382 and 204,724	0	0
Treasury stock, at cost (shares held: 1,115 and $895)	(707)	(535)
Additional paid-in capital	6,466	6,131
Accumulated other comprehensive loss	(68)	(37)
Retained earnings	2,416	2,069
Total stockholders’ equity	8,107	7,628
Total liabilities and stockholders’ equity	$ 17,544	$ 17,387

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par or stated value per share (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par or stated value per share (in dollars per share)	$ 0.001	$ 0.001
Shares of common stock, authorized (in shares)	600,000,000
Common stock, shares, issued (in shares)	206,497,000	205,619,000
Common stock, outstanding (in shares)	205,382,000	204,724,000
Treasury stock (in shares)	1,115,000	895,000

Condensed Consolidated Statements of Comprehensive Income - USD ($)
shares in Thousands, $ in Millions

3 Months Ended

Mar. 31, 2024

Mar. 31, 2023

Revenues:

Total revenues

$ 2,603

$ 2,096

Cost of revenues:

Total cost of revenues

^[1]

520

438

Gross profit

2,083

1,658

Operating expenses:

Sales and marketing

^[1]

923

823

Research and development

^[1]

606

492

General and administrative

^[1]

222

199

Total operating expenses

^[1]

1,751

1,514

Income from operations

332

144

Interest income

101

Other expense, net

(8)

(16)

Income before income taxes

425

188

Provision for income taxes

Net income

$ 347

$ 150

Net income per share - basic (in USD per share)

$ 1.69

$ 0.74

Net income per share - diluted (in USD per share)

$ 1.67

$ 0.73

Weighted-average shares used to compute net income per share - basic (in shares)

205,108

203,385

Weighted-average shares used to compute net income per share - diluted (in shares)

207,684

204,263

Other comprehensive (loss) income:

Foreign currency translation adjustments

$ (30)

$ 13

Unrealized (loss) gain on investments, net of tax

(13)

Unrealized gain on derivative instruments, net of tax

Other comprehensive (loss) income

(31)

Comprehensive income

316

182

Subscription

Revenues:

Total revenues

2,523

2,024

Cost of revenues:

Total cost of revenues

^[1]

441

354

Professional services and other

Revenues:

Total revenues

Cost of revenues:

Total cost of revenues

^[1]

$ 79

$ 84

[1]

Includes stock-based compensation as follows:


	Three Months Ended March 31,
	2024		2023
Cost of revenues:
Subscription	$	58	$	46
Professional services and other	12		14
Operating expenses:
Sales and marketing	134		126
Research and development	159		135
General and administrative	59		60

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock-based compensation	$ 422	$ 381
Cost of revenues \| Subscription
Stock-based compensation	58	46
Cost of revenues \| Professional services and other
Stock-based compensation	12	14
Sales and marketing
Stock-based compensation	134	126
Research and development
Stock-based compensation	159	135
General and administrative
Stock-based compensation	$ 59	$ 60

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Millions	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2022		202,882,000
Beginning balance at Dec. 31, 2022	$ 5,032	$ 0		$ 4,796	$ 338	$ (102)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock and Treasury stock issued under employee stock plans (in shares)	900	858,000
Common stock and Treasury stock issued under employee stock plans	$ 117			117
Taxes paid related to net share settlement of equity awards	(112)			(112)
Stock-based compensation	381			381
Other comprehensive income (loss), net of tax	32					32
Net income	150				150
Ending balance (in shares) at Mar. 31, 2023		203,740,000
Ending balance at Mar. 31, 2023	5,600	$ 0		5,182	488	(70)
Beginning balance (in shares) at Dec. 31, 2023		205,619
Beginning balance at Dec. 31, 2023	$ 7,628	$ 0	$ (535)	6,131	2,069	(37)
Beginning balance, treasury (in shares) at Dec. 31, 2023	(895)		(895)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock and Treasury stock issued under employee stock plans (in shares)	900	878	5
Common stock and Treasury stock issued under employee stock plans	$ 131		$ 3	128
Common stock repurchased (in shares)	(200)		(225)
Common stock repurchased	$ (175)		$ (175)
Taxes paid related to net share settlement of equity awards	(215)			(215)
Stock-based compensation	422			422
Other comprehensive income (loss), net of tax	(31)					(31)
Net income	347				347
Ending balance (in shares) at Mar. 31, 2024		206,497
Ending balance at Mar. 31, 2024	$ 8,107	$ 0	$ (707)	$ 6,466	$ 2,416	$ (68)
Ending balance, treasury (in shares) at Mar. 31, 2024	(1,115)		(1,115)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 347,000	$ 150,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	130,000	126,000
Amortization of deferred commissions	131,000	106,000
Stock-based compensation	422,000	381,000
Deferred income taxes	28,000	7,000
Other	(18,000)	1,000
Changes in operating assets and liabilities, net of effect of business combinations:
Accounts receivable	715,000	619,000
Deferred commissions	(165,000)	(159,000)
Prepaid expenses and other assets	(106,000)	(64,000)
Accounts payable	107,000	(46,000)
Deferred revenue	(10,000)	40,000
Accrued expenses and other liabilities	(240,000)	(259,000)
Net cash provided by operating activities	1,341,000	902,000
Cash flows from investing activities:
Purchases of property and equipment	(135,000)	(165,000)
Business combinations, net of cash acquired	(194,000)	0
Purchases of other intangibles	(21,000)	0
Purchases of investments	(1,605,000)	(1,222,000)
Purchases of non-marketable investments	(42,000)	(30,000)
Sales and maturities of investments	1,073,000	880,000
Other	6,000	13,000
Net cash used in investing activities	(918,000)	(524,000)
Cash flows from financing activities:
Proceeds from employee stock plans	131,000	117,000
Repurchases of common stock	(175,000)	0
Taxes paid related to net share settlement of equity awards	(215,000)	(112,000)
Net cash (used in) provided by financing activities	(259,000)	5,000
Foreign currency effect on cash, cash equivalents and restricted cash	(4,000)	1,000
Net change in cash, cash equivalents and restricted cash	160,000	384,000
Cash, cash equivalents and restricted cash at beginning of period	1,904,000	1,475,000
Cash, cash equivalents and restricted cash at end of period	2,064,000	1,859,000
Cash, cash equivalents and restricted cash at end of period:
Cash and cash equivalents	2,056,000	1,852,000
Restricted cash included in prepaid expenses and other current assets	8,000	7,000
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows	2,064,000	1,859,000
Supplemental disclosures of other cash flow information:
Interest paid	11,000	11,000
Income taxes paid, net of refunds	21,000	22,000
Non-cash investing and financing activities:
Property and equipment included in accounts payable, accrued expenses and other liabilities	$ 89,000	$ 47,000

Description of the Business	3 Months Ended
Description of the Business	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Business	Description of the Business ServiceNow was founded on a simple premise: to make work flow better. Our intelligent platform, the Now Platform, is a cloud-based solution with embedded artificial intelligence and machine learning capabilities that helps global enterprises across industries, universities and governments unify and digitize their workflows. Our workflow applications built on the Now Platform are organized along four primary areas: Technology, Customer and Industry, Employee and Creator. The products under each of our workflows help customers connect, automate and empower work across systems and silos to enable great outcomes for businesses and great experiences for people. The Now Platform orchestrates work across our customers’ cloud platforms and systems of choice, allowing our customers to get work done regardless of their current and future preferred systems of record and collaboration platforms.

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by United States (“U.S.”) generally accepted accounting principles (“GAAP”) for complete financial statements due to the permitted exclusion of certain disclosures for interim reporting. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary under GAAP for fair statement of results for the interim periods presented have been included. As a result of displaying amounts in millions, rounding differences may exist in the condensed consolidated financial statements and footnote tables. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for other interim periods or future years. The condensed consolidated balance sheet as of December 31, 2023 is derived from audited consolidated financial statements; however, it does not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on January 25, 2024. Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with GAAP, and include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Such management estimates and assumptions include, but are not limited to, standalone selling price for each distinct performance obligation included in customer contracts with multiple performance obligations, the period of benefit for deferred commissions, valuation of intangible assets, the useful life of property and equipment and identifiable intangible assets, stock-based compensation expense and income taxes. Actual results could differ from those estimates. In January 2024, we completed an assessment of the useful life of our data center equipment and determined we should increase the estimated useful life of data center equipment from four years to five years. This change in accounting estimate was effective beginning fiscal year 2024. Based on the carrying amount of data center equipment included in property and equipment, net as of December 31, 2023, the effect of this change in estimate for the three months ended March 31, 2024, was a reduction in depreciation expense of $29 million and an increase in net income of $23 million, or $0.11 per share basic and diluted. Significant Accounting Policies We have incorporated two updates to our significant accounting policies during the quarter ended March 31, 2024. The first is the change in useful life of our data center equipment discussed above and the second is related to our cash flow hedging program initiated to hedge a portion of our forecasted foreign currency denominated revenues as discussed below. There were no other updates to our significant accounting policies disclosed in “Note 2 – Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended December 31, 2023. Derivative Financial Instruments Cash flow hedging We record derivatives at fair value as either assets or liabilities on our condensed consolidated balance sheets. For derivative contracts entered into to hedge a portion of our forecasted foreign currency denominated revenues that are designated and qualify as cash flow hedges, the unrealized gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings as subscription revenues when the hedged transaction affects earnings. Derivatives not designated as hedging instruments are adjusted to fair value through earnings as other expense, net in the period during which changes in fair value occur. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. We also formally assess, both at the inception of the hedge, and on an ongoing basis, whether each derivative is highly effective in offsetting changes in cash flows of the hedged item. Fluctuations in the value of the derivative instruments are generally offset by changes in the hedged item; however, if it is determined that a derivative is not highly effective as a hedge or if a derivative ceases to be a highly effective hedge, the Company will discontinue hedge accounting prospectively for the affected derivative. Concentration of Credit Risk and Significant Customers Credit risk arising from accounts receivable is mitigated to a certain extent due to our large number of customers and their dispersion across various industries and geographies. We had one customer, a U.S. federal channel partner and systems integrator, that represented 11% of our accounts receivable balance as of March 31, 2024 and 11% of our total revenues for the three months ended March 31, 2024. Based on our periodic credit evaluations, there have been no historical collection concerns with this customer. There were no customers that individually exceeded 10% of our accounts receivable balance as of December 31, 2023 or our total revenues for the three months ended March 31, 2023. For purposes of assessing concentration of credit risk and significant customers, a group of customers under common control or customers that are affiliates of each other are regarded as a single customer.

Investments

3 Months Ended

Mar. 31, 2024

Debt Securities, Available-for-Sale [Abstract]

Investments

Marketable Debt Securities

The following is a summary of our available-for-sale debt securities recorded within short-term and long-term investments on the condensed consolidated balance sheets (in millions):


	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale debt securities:
Commercial paper	$	337	$	—	$	—	$	337
Corporate notes and bonds	4,050		5		(15)		4,040
Certificates of deposit	63		—		—		63
U.S. government and agency securities	2,206		1		(11)		2,196
Mortgage-backed and asset-backed securities	102		—		(18)		84

Total available-for-sale debt securities	$	6,758	$	6	$	(44)	$	6,720


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale debt securities:
Commercial paper	$	349	$	—	$	—	$	349
Corporate notes and bonds	3,579		10		(13)		3,576
Certificates of deposit	94		—		—		94
U.S. government and agency securities	2,081		3		(6)		2,078
Mortgage-backed and asset-backed securities	102		—		(16)		86

Total available-for-sale debt securities	$	6,205	$	13	$	(35)	$	6,183


	March 31, 2024
Due within 1 year	$	3,054
Due in 1 year through 5 years	3,582
Instruments not due in single maturity	84
Total	$	6,720

Non-Marketable Equity Investments

Fair Value Measurements

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of March 31, 2024 (in millions):


	Level 1		Level 2		Total
Cash equivalents:
Money market funds	$	842	$	—	$	842
Commercial paper	—		114		114
Corporate notes and bonds	—		—		—

Deposits	330		—		330
U.S. government and agency securities	—		139		139
Marketable securities:
Commercial paper	—		337		337
Corporate notes and bonds	—		4,040		4,040
Certificates of deposit	—		63		63
U.S. government and agency securities	—		2,196		2,196
Mortgage-backed and asset-backed securities	—		84		84



Total	$	1,172	$	6,973	$	8,145

The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of December 31, 2023 (in millions):


	Level 1		Level 2		Total
Cash equivalents:
Money market funds	$	1,215	$	—	$	1,215
Commercial paper	—		79		79
Corporate notes and bonds	—		2		2

Deposits	295		—		295
U.S. government and agency securities	—		4		4
Marketable securities:
Commercial paper	—		349		349
Corporate notes and bonds	—		3,576		3,576
Certificates of deposit	—		94		94
U.S. government and agency securities	—		2,078		2,078
Mortgage-backed and asset-backed securities	—		86		86

Total	$	1,510	$	6,268	$	7,778

Business Combinations	3 Months Ended
Business Combinations	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Business Combinations	Business Combinations On July 17, 2023, we acquired all outstanding shares of G2K Group GmbH, an artificial intelligence powered platform, for $464 million in a cash transaction. The consideration was paid in two installments, with the first payment made in July 2023 and the second payment made in February 2024. The acquisition is intended to enhance our Now Platform with the acquired smart Internet of Things technology, enabling businesses to intelligently action digital and in-store data with enterprise-grade workflows. The purchase price was preliminarily allocated based on the estimated fair value of the developed technology intangible asset of $75 million (six-year estimated useful life), net tangible liabilities of $1 million, deferred tax liabilities of $23 million and goodwill of $413 million, which is not deductible for income tax purposes. Goodwill is primarily attributed to the value expected from synergies resulting from the business combination. The fair values assigned to tangible and intangible assets acquired, liabilities assumed and income taxes payable and deferred taxes are based on management’s estimates and assumptions. The provisional measurements of fair value for certain assets and liabilities may be subject to change as additional information is received. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. We have included the financial results of the business combination in the condensed consolidated financial statements from the date of acquisition, which were not material.

Intangible Assets

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets, net consists of the following (in millions):


	March 31, 2024		December 31, 2023
Developed technology	$	538	$	516
Patents	73		72
Other	11		11
Intangible assets, gross	622		599
Less: accumulated amortization	(398)		(375)
Intangible assets, net	$	224	$	224

The following table presents the estimated future amortization expense related to intangible assets held at March 31, 2024 (in millions):


Years Ending December 31,
Remainder of 2024	$	64
2025	68
2026	38
2027	24
2028	19
Thereafter	11
Total future amortization expense	$	224

Property and Equipment

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment, net consists of the following (in millions):


	March 31, 2024		December 31, 2023
Computer equipment	$	2,254	$	2,136
Computer software	98		96
Leasehold and other improvements	315		292
Furniture and fixtures	90		86

Construction in progress	16		33
Property and equipment, gross	2,773		2,643
Less: Accumulated depreciation	(1,323)		(1,285)
Property and equipment, net	$	1,450	$	1,358

Derivative Contracts

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Contracts

Derivatives Designated as Hedging Instruments

The total gross fair values of derivatives designated as hedging instruments recorded within the condensed consolidated balance sheets were as follows (in millions):


	March 31, 2024
Condensed Consolidated Balance Sheets Location	Fair Value
Prepaid expenses and other current assets	$	11
Other assets	$	5

Derivatives not Designated as Hedging Instruments

Deferred Revenue and Performance Obligations	3 Months Ended
Deferred Revenue and Performance Obligations	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Deferred Revenue and Performance Obligations	Deferred Revenue and Performance Obligations Revenues recognized during the three months ended March 31, 2024 and 2023 from amounts included in deferred revenue as of December 31, 2023 and 2022 were $2.2 billion and $1.8 billion, respectively. Remaining Performance Obligations Transaction price allocated to remaining performance obligations (“RPO”) represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancellable amounts that will be invoiced and recognized as revenues in future periods. RPO excludes contracts that are billed in arrears, such as certain time and materials contracts, as we apply the “right to invoice” practical expedient under relevant accounting guidance. As of March 31, 2024, the total non-cancellable RPO under our contracts with customers was $17.7 billion and we expect to recognize revenues on approximately 48% of these RPO over the following 12 months. The majority of the non-current RPO will be recognized over the next 13 to 36 months.

Debt	3 Months Ended
Debt	Mar. 31, 2024
Convertible Notes Payable [Abstract]
Debt	Debt For each of the periods ended March 31, 2024 and December 31, 2023, the carrying value of our outstanding debt was $1,488 million, net of unamortized debt discount and issuance costs of $12 million. We consider the fair value of the 2030 Notes at March 31, 2024 and December 31, 2023 to be a Level 2 measurement. The estimated fair value of the 2030 Notes based on the closing trading price per $100, was $1,216 million and $1,236 million at March 31, 2024 and December 31, 2023, respectively. 2030 Notes In August 2020, we issued 1.40% fixed rate ten-year notes with an aggregate principal amount of $1.5 billion due on September 1, 2030 (the “2030 Notes”). The 2030 Notes were issued at 99.63% of principal and we incurred $13 million for debt issuance costs. The effective interest rate for the 2030 Notes was 1.53% and included interest payable, amortization of debt issuance cost and amortization of debt discount. Interest is payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2021, and the entire outstanding principal amount is due at maturity on September 1, 2030. The 2030 Notes are unsecured obligations and the indentures governing the 2030 Notes contain customary events of default and covenants that, among others and subject to exceptions, restrict our ability to incur or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified properties.

Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Accumulated Other Comprehensive Loss

The following tables show the components of accumulated other comprehensive loss, net of tax, in the stockholders’ equity section of our condensed consolidated balance sheets (in millions):


	Unrealized Gains (Losses) on Derivative Instruments		Unrealized Gains (Losses) on Investments		Foreign Currency Translation Adjustment		Total

Balance as of December 31, 2023	$	—	$	(39)	$	2	$	(37)
Other comprehensive income (loss) before reclassifications	12		(13)		(30)		(31)
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		—		—
Net current period other comprehensive income (loss)	12		(13)		(30)		(31)
Balance as of March 31, 2024	$	12	$	(52)	$	(28)	$	(68)


	Unrealized Gains (Losses) on Derivative Instruments		Unrealized Gains (Losses) on Investments		Foreign Currency Translation Adjustment		Total

Balance as of December 31, 2022	$	—	$	(77)	$	(25)	$	(102)
Other comprehensive income before reclassifications	—		19		13		32
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		—		—
Net current period other comprehensive income	—		19		13		32
Balance as of March 31, 2023	$	—	$	(58)	$	(12)	$	(70)

Stockholders' Equity

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Stockholders' Equity

Common Stock


			March 31, 2024
Stock plans:
Options outstanding			1,146
RSUs(1)			7,615
Shares of common stock available for future grants:
Amended and Restated 2021 Equity Incentive Plan(2)			9,657
Amended and Restated 2012 Employee Stock Purchase Plan(2)			8,246

Total shares of common stock reserved for future issuance			26,664

(1)Represents the number of shares issuable upon settlement of outstanding restricted stock units (“RSUs”) and performance-based RSUs (“PRSUs”), as discussed in Note 13.

(2)Refer to Note 13 for a description of these plans.

Treasury Stock

Equity Awards

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Equity Awards

Stock Options

A summary of stock option activity for the three months ended March 31, 2024 was as follows:


	Number of Shares	Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
	(in thousands)			(in years)	(in millions)
Outstanding at December 31, 2023	1,150	$	603.30


Exercised	(4)	$	80.11		$	2
Forfeited	—	$	84.97
Outstanding at March 31, 2024	1,146	$	605.06	7.2	$	180




Vested and expected to vest as of March 31, 2024	964	$	591.47	7.1	$	165
Vested and exercisable as of March 31, 2024	173	$	247.92	5.1	$	89

Aggregate intrinsic value represents the difference between the estimated fair value of our common stock and the exercise price of outstanding, in-the-money options.

The total fair value of stock options vested during the three months ended March 31, 2024 was $6 million. No stock options were granted during the three months ended March 31, 2024.

RSUs

A summary of RSU activity for the three months ended March 31, 2024 was as follows:


	Number of Shares	Weighted-Average Grant-Date Fair Value Per Share
	(in thousands)
Outstanding at December 31, 2023	6,262	$	506.77
Granted	2,385	$	776.39
Vested	(895)	$	497.53
Forfeited	(137)	$	524.91
Outstanding at March 31, 2024	7,615	$	591.99




Expected to vest as of March 31, 2024	6,652

Net Income Per Share

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Net Income Per Share


	Three Months Ended March 31,
	2024		2023
Numerator:
Net income	$	347	$	150
Denominator:
Weighted-average shares outstanding - basic	205,108		203,385
Weighted-average effect of potentially dilutive securities:
Common stock options	132		109
RSUs	2,418		769
ESPP obligations	26		—






Weighted-average shares outstanding - diluted	207,684		204,263
Net income per share - basic	$	1.69	$	0.74
Net income per share - diluted	$	1.67	$	0.73
Common stock options, RSUs and ESPP obligations excluded from diluted net income per share because their effect would have been anti-dilutive	3,168		7,731

Provision for Income Taxes	3 Months Ended
Provision for Income Taxes	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Provision for Income Taxes	Provision for Income Taxes We compute our provision for income taxes by applying the estimated annual effective tax rate to year-to-date income from recurring operations and adjust the provision for discrete tax items recorded in the period. Our income tax provision was $78 million for the three months ended March 31, 2024. The income tax provision was primarily attributable to the mix of earnings and losses in countries with differing statutory tax rates, offset by excess tax benefits of stock-based compensation. Our income tax provision was $38 million for the three months ended March 31, 2023. The income tax provision was primarily attributable to the mix of earnings and losses in countries with differing statutory tax rates and the valuation allowance in the United States. We regularly assess the need for a valuation allowance against our deferred tax assets. In making that assessment, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. As of June 30, 2023, we achieved cumulative U.S. income during the prior twelve quarters when considering pre-tax income adjusted for permanent differences and other comprehensive losses. Based on all available positive and negative evidence, having demonstrated sustained profitability which is objective and verifiable, and taking into account anticipated future earnings, we concluded it is more likely than not that our U.S. federal and state deferred tax assets will be realizable, with the exception of California. As of March 31, 2024, we continue to maintain a valuation allowance against our California deferred tax assets due to the uncertainty regarding realizability of these deferred tax assets as they have not met the “more likely than not” realization criteria, particularly as we expect research and development tax credit generation to exceed our ability to use the credits in future years. We will continue to monitor the need for a valuation allowance against our deferred tax assets on a quarterly basis. We are subject to taxation in the United States and foreign jurisdictions. As of March 31, 2024, our tax years 2004 to 2023 remain subject to examination in most jurisdictions. Due to differing interpretations of tax laws and regulations, tax authorities may dispute our tax filing positions. We periodically evaluate our exposures associated with our tax filing positions and believe that adequate amounts have been reserved for adjustments that may result from tax examinations.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Operating Leases

As of March 31, 2024, the weighted-average remaining lease term is approximately nine years, and the weighted-average discount rate is 4%.

Maturities of operating lease liabilities as of March 31, 2024 are presented in the table below (in millions):



Remainder of 2024	$	92
2025	128
2026	105
2027	90
2028	86
Thereafter	422
Total operating lease payments	923
Less: imputed interest	(138)
Present value of operating lease liabilities	$	785

Other Commitments

Further, $57 million of unrecognized tax benefits have been recorded as liabilities as of March 31, 2024.

Legal Proceedings

Other

Indemnification Provisions

Information about Geographic Areas and Products

3 Months Ended

Mar. 31, 2024

Segments, Geographical Areas [Abstract]

Information about Geographic Areas and Products

Revenues by geographic area, based on the location of our users, were as follows for the periods presented (in millions):


	Three Months Ended March 31,
	2024		2023
North America(1)	$	1,637	$	1,344
EMEA(2)	676		532
Asia Pacific and other	290		220
Total revenues	$	2,603	$	2,096

Property and equipment, net by geographic area were as follows (in millions):


	March 31, 2024		December 31, 2023
North America(3)	$	928	$	871
EMEA(2)	338		312
Asia Pacific and other	184		175
Total property and equipment, net	$	1,450	$	1,358

(1)Revenues attributed to the United States were 94% of North America revenues for each of the three months ended March 31, 2024 and 2023.

(2)Europe, the Middle East and Africa (“EMEA”).

(3)Property and equipment, net attributed to the United States were 78% and 79% of property and equipment, net attributable to North America as of March 31, 2024 and December 31, 2023, respectively.

Subscription revenues consist of the following (in millions):


	Three Months Ended March 31,
	2024		2023
Digital workflow products	$	2,231	$	1,790
ITOM products	292		234
Total subscription revenues	$	2,523	$	2,024

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income	$ 347	$ 150

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Terminated	false
Gina Mastantuono [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Gina Mastantuono, our Chief Financial Officer, adopted a trading plan on February 27, 2024. The plan, which expires January 31, 2025, provides for the sale of (i) 3,028 shares of our common stock, and (ii) 8.59% of the (gross) shares resulting from the vesting of 6,662 additional (gross) shares of our common stock during the plan period.
Name	Gina Mastantuono
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	February 27, 2024
Arrangement Duration	339 days
Jacqueline Canney [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Jacqueline Canney, our Chief People Officer, adopted a trading plan on February 27, 2024. The plan, which expires May 23, 2025, provides for the sale of 100% of the (net) shares resulting from the vesting of 11,924 additional (gross) shares of our common stock during the plan period, subject to adjustment based on the achievement of performance conditions (net shares are net of tax withholding).
Name	Jacqueline Canney
Title	Chief People Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	February 27, 2024
Arrangement Duration	451 days
Aggregate Available	11,924
Nick Tzitzon [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Nick Tzitzon, our Chief Strategy and Corporate Affairs Officer, adopted a trading plan on February 29, 2024. The plan, which expires May 30, 2025, provides for the sale of (i) 2,000 shares of our common stock, and (ii) 100% of the (net) shares resulting from the vesting of 7,992 additional (gross) shares of our common stock during the plan period, subject to adjustment based on the achievement of performance conditions (net shares are net of tax withholding).
Name	Nick Tzitzon
Title	Chief Strategy and Corporate Affairs Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	February 29, 2024
Arrangement Duration	456 days
Chris Bedi [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Chris Bedi, our Chief Digital Information Officer, adopted a trading plan on February 29, 2024. The plan, which expires May 20, 2025, provides for the sale of (i) 4,000 shares of our common stock, (ii) 33.34% of the (net) shares resulting from the vesting of 8,766 additional (gross) shares of our common stock during the plan period and (iii) 66.68% of the (net) shares resulting from the vesting of 8,781 additional (gross) shares of our common stock during the plan period, subject to adjustment based on the achievement of performance conditions (net shares are net of tax withholding).
Name	Chris Bedi
Title	Chief Digital Information Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	February 29, 2024
Arrangement Duration	446 days
Kevin McBride [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Kevin McBride, our Chief Accounting Officer, adopted a trading plan on February 29, 2024. The plan, which expires February 14, 2025, provides for the sale of 400 shares of our common stock.
Name	Kevin McBride
Title	Chief Accounting Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	February 29, 2024
Aggregate Available	400
Russell Elmer [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Russell Elmer, our General Counsel, terminated his trading plan on February 20, 2024, effective immediately. The trading plan previously permitted the sale of 100% of the (net) shares resulting from the vesting of 11,944 additional (gross) shares of our common stock during the plan period (net shares are net of tax withholding).
Name	Russell Elmer
Title	General Counsel
Rule 10b5-1 Arrangement Terminated	true
Termination Date	February 20, 2024
Arrangement Duration	351 days
Aggregate Available	11,944
Gina Mastantuono Rule Trading Arrangement, Common Stock [Member] \| Gina Mastantuono [Member]
Trading Arrangements, by Individual
Aggregate Available	3,028
Gina Mastantuono Rule Trading Arrangement, 8.59% Vesting Of Additional Common Stock [Member] \| Gina Mastantuono [Member]
Trading Arrangements, by Individual
Aggregate Available	6,662
Nick Tzitzon Rule Trading Arrangement, Common Stock [Member] \| Nick Tzitzon [Member]
Trading Arrangements, by Individual
Aggregate Available	2,000
Nick Tzitzon Rule Trading Arrangement, 100% Vesting Of Additional Common Stock [Member] \| Nick Tzitzon [Member]
Trading Arrangements, by Individual
Aggregate Available	7,992
Chris Bedi Rule Trading Arrangement, Common Stock [Member] \| Chris Bedi [Member]
Trading Arrangements, by Individual
Aggregate Available	4,000
Chris Bedi Rule Trading Arrangement, 33.34% Vesting Of Additional Common Stock [Member] \| Chris Bedi [Member]
Trading Arrangements, by Individual
Aggregate Available	8,766
Chris Bedi Rule Trading Arrangement, 66.68% Vesting Of Additional Common Stock [Member] \| Chris Bedi [Member]
Trading Arrangements, by Individual
Aggregate Available	8,781

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by United States (“U.S.”) generally accepted accounting principles (“GAAP”) for complete financial statements due to the permitted exclusion of certain disclosures for interim reporting. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary under GAAP for fair statement of results for the interim periods presented have been included. As a result of displaying amounts in millions, rounding differences may exist in the condensed consolidated financial statements and footnote tables. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for other interim periods or future years. The condensed consolidated balance sheet as of December 31, 2023 is derived from audited consolidated financial statements; however, it does not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on January 25, 2024.
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with GAAP, and include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Such management estimates and assumptions include, but are not limited to, standalone selling price for each distinct performance obligation included in customer contracts with multiple performance obligations, the period of benefit for deferred commissions, valuation of intangible assets, the useful life of property and equipment and identifiable intangible assets, stock-based compensation expense and income taxes. Actual results could differ from those estimates.
Derivative Financial Instruments	Derivative Financial Instruments Cash flow hedging We record derivatives at fair value as either assets or liabilities on our condensed consolidated balance sheets. For derivative contracts entered into to hedge a portion of our forecasted foreign currency denominated revenues that are designated and qualify as cash flow hedges, the unrealized gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings as subscription revenues when the hedged transaction affects earnings. Derivatives not designated as hedging instruments are adjusted to fair value through earnings as other expense, net in the period during which changes in fair value occur. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. We also formally assess, both at the inception of the hedge, and on an ongoing basis, whether each derivative is highly effective in offsetting changes in cash flows of the hedged item. Fluctuations in the value of the derivative instruments are generally offset by changes in the hedged item; however, if it is determined that a derivative is not highly effective as a hedge or if a derivative ceases to be a highly effective hedge, the Company will discontinue hedge accounting prospectively for the affected derivative.
Concentration of Credit Risk and Significant Customers	Concentration of Credit Risk and Significant Customers Credit risk arising from accounts receivable is mitigated to a certain extent due to our large number of customers and their dispersion across various industries and geographies. We had one customer, a U.S. federal channel partner and systems integrator, that represented 11% of our accounts receivable balance as of March 31, 2024 and 11% of our total revenues for the three months ended March 31, 2024. Based on our periodic credit evaluations, there have been no historical collection concerns with this customer. There were no customers that individually exceeded 10% of our accounts receivable balance as of December 31, 2023 or our total revenues for the three months ended March 31, 2023. For purposes of assessing concentration of credit risk and significant customers, a group of customers under common control or customers that are affiliates of each other are regarded as a single customer.
Fair Value Measurements	We determine the fair value of our security holdings based on pricing from our service providers and market prices from industry-standard independent data providers. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs), pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) or using unobservable inputs that are supported by little or no market activity (Level 3 inputs).
Legal Proceedings	Legal Proceedings We are party to certain litigation and other legal proceedings. While legal proceedings are inherently unpredictable and subject to uncertainties, we do not believe the ultimate resolution of any such proceedings is likely to result in a material loss. We accrue for loss contingencies when it is both probable that we will incur the loss and when we can reasonably estimate the amount of the loss or range of loss. On July 5, 2022, InQuisient Inc. (“Plaintiff”) filed a complaint against ServiceNow, Inc. in the U.S. District Court for the District of Delaware, alleging the Now Platform’s use of relational databases infringes three of Plaintiff’s patents. Plaintiff is seeking injunctive relief and unspecified damages. The Company filed an answer denying Plaintiff’s allegations and asserts Plaintiff’s patents are, among other things, invalid, not infringed and otherwise unenforceable. A trial date has been set for January 27, 2025. While the Company continues to vigorously defend this matter, we cannot predict the outcome with any degree of certainty. We are unable to reasonably estimate the possible loss or range of loss, if any. Any adverse determination related to intellectual property claims or other litigation could prevent us from offering our services and adversely affect our financial condition and results of operations. For additional information regarding intellectual property litigation, see “Risk Factors—Lawsuits by third parties that allege we infringe their intellectual property rights could harm our business and operating results” and “Risk Factors—Our intellectual property protections may not provide us with a competitive advantage, and defending our intellectual property may result in substantial expenses that harm our operating results” included in our Annual Report on Form 10-K for the year ended December 31, 2023. Other Through its internal processes, the Company received a complaint that raised potential compliance issues during the procurement process related to one of its government contracts. In response, the Company initiated an internal investigation, with the assistance of outside legal counsel, into the validity of these claims. The investigation is ongoing, and the Company cannot predict the timing, outcome or possible impact of the investigation. Indemnification Provisions Our agreements include provisions indemnifying customers against intellectual property and other third-party claims. In addition, we have entered into indemnification agreements with our directors, executive officers and certain other officers that will require us, among other things, to indemnify them against certain liabilities that may arise as a result of their affiliation with us. We have not incurred any costs as a result of such indemnification obligations and have not recorded any liabilities related to such obligations in the condensed consolidated financial statements.

Investments (Tables)

3 Months Ended

Mar. 31, 2024

Debt Securities, Available-for-Sale [Abstract]

Schedule of Marketable Debt Securities

The following is a summary of our available-for-sale debt securities recorded within short-term and long-term investments on the condensed consolidated balance sheets (in millions):


	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale debt securities:
Commercial paper	$	337	$	—	$	—	$	337
Corporate notes and bonds	4,050		5		(15)		4,040
Certificates of deposit	63		—		—		63
U.S. government and agency securities	2,206		1		(11)		2,196
Mortgage-backed and asset-backed securities	102		—		(18)		84

Total available-for-sale debt securities	$	6,758	$	6	$	(44)	$	6,720


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale debt securities:
Commercial paper	$	349	$	—	$	—	$	349
Corporate notes and bonds	3,579		10		(13)		3,576
Certificates of deposit	94		—		—		94
U.S. government and agency securities	2,081		3		(6)		2,078
Mortgage-backed and asset-backed securities	102		—		(16)		86

Total available-for-sale debt securities	$	6,205	$	13	$	(35)	$	6,183

Schedule of Investments Classified by Contractual Maturity Date

The fair values of available-for-sale debt securities, by remaining contractual maturity, are as follows (in millions):


	March 31, 2024
Due within 1 year	$	3,054
Due in 1 year through 5 years	3,582
Instruments not due in single maturity	84
Total	$	6,720

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Assets Measured at Fair Value on Recurring Basis

The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of March 31, 2024 (in millions):


	Level 1		Level 2		Total
Cash equivalents:
Money market funds	$	842	$	—	$	842
Commercial paper	—		114		114
Corporate notes and bonds	—		—		—

Deposits	330		—		330
U.S. government and agency securities	—		139		139
Marketable securities:
Commercial paper	—		337		337
Corporate notes and bonds	—		4,040		4,040
Certificates of deposit	—		63		63
U.S. government and agency securities	—		2,196		2,196
Mortgage-backed and asset-backed securities	—		84		84



Total	$	1,172	$	6,973	$	8,145

The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of December 31, 2023 (in millions):


	Level 1		Level 2		Total
Cash equivalents:
Money market funds	$	1,215	$	—	$	1,215
Commercial paper	—		79		79
Corporate notes and bonds	—		2		2

Deposits	295		—		295
U.S. government and agency securities	—		4		4
Marketable securities:
Commercial paper	—		349		349
Corporate notes and bonds	—		3,576		3,576
Certificates of deposit	—		94		94
U.S. government and agency securities	—		2,078		2,078
Mortgage-backed and asset-backed securities	—		86		86

Total	$	1,510	$	6,268	$	7,778

Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Intangible assets, net consists of the following (in millions):


	March 31, 2024		December 31, 2023
Developed technology	$	538	$	516
Patents	73		72
Other	11		11
Intangible assets, gross	622		599
Less: accumulated amortization	(398)		(375)
Intangible assets, net	$	224	$	224

Schedule of Estimated Future Amortization Expense Related to Intangible Assets

The following table presents the estimated future amortization expense related to intangible assets held at March 31, 2024 (in millions):


Years Ending December 31,
Remainder of 2024	$	64
2025	68
2026	38
2027	24
2028	19
Thereafter	11
Total future amortization expense	$	224

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment, Net

Property and equipment, net consists of the following (in millions):


	March 31, 2024		December 31, 2023
Computer equipment	$	2,254	$	2,136
Computer software	98		96
Leasehold and other improvements	315		292
Furniture and fixtures	90		86

Construction in progress	16		33
Property and equipment, gross	2,773		2,643
Less: Accumulated depreciation	(1,323)		(1,285)
Property and equipment, net	$	1,450	$	1,358

Derivative Contracts (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Values of Outstanding Derivative Contracts

The total gross fair values of derivatives designated as hedging instruments recorded within the condensed consolidated balance sheets were as follows (in millions):


	March 31, 2024
Condensed Consolidated Balance Sheets Location	Fair Value
Prepaid expenses and other current assets	$	11
Other assets	$	5

Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income, Net of Tax

The following tables show the components of accumulated other comprehensive loss, net of tax, in the stockholders’ equity section of our condensed consolidated balance sheets (in millions):


	Unrealized Gains (Losses) on Derivative Instruments		Unrealized Gains (Losses) on Investments		Foreign Currency Translation Adjustment		Total

Balance as of December 31, 2023	$	—	$	(39)	$	2	$	(37)
Other comprehensive income (loss) before reclassifications	12		(13)		(30)		(31)
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		—		—
Net current period other comprehensive income (loss)	12		(13)		(30)		(31)
Balance as of March 31, 2024	$	12	$	(52)	$	(28)	$	(68)


	Unrealized Gains (Losses) on Derivative Instruments		Unrealized Gains (Losses) on Investments		Foreign Currency Translation Adjustment		Total

Balance as of December 31, 2022	$	—	$	(77)	$	(25)	$	(102)
Other comprehensive income before reclassifications	—		19		13		32
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		—		—
Net current period other comprehensive income	—		19		13		32
Balance as of March 31, 2023	$	—	$	(58)	$	(12)	$	(70)

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Schedule of Common Stock Outstanding and Reserved Shares of Common Stock for Future Issuance

As of March 31, 2024, we had 205.4 million shares of common stock, net of treasury stock, outstanding and had reserved shares of common stock for future issuance as follows (in thousands):


			March 31, 2024
Stock plans:
Options outstanding			1,146
RSUs(1)			7,615
Shares of common stock available for future grants:
Amended and Restated 2021 Equity Incentive Plan(2)			9,657
Amended and Restated 2012 Employee Stock Purchase Plan(2)			8,246

Total shares of common stock reserved for future issuance			26,664

(1)Represents the number of shares issuable upon settlement of outstanding restricted stock units (“RSUs”) and performance-based RSUs (“PRSUs”), as discussed in Note 13.

(2)Refer to Note 13 for a description of these plans.

Equity Awards (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

A summary of stock option activity for the three months ended March 31, 2024 was as follows:


	Number of Shares	Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
	(in thousands)			(in years)	(in millions)
Outstanding at December 31, 2023	1,150	$	603.30


Exercised	(4)	$	80.11		$	2
Forfeited	—	$	84.97
Outstanding at March 31, 2024	1,146	$	605.06	7.2	$	180




Vested and expected to vest as of March 31, 2024	964	$	591.47	7.1	$	165
Vested and exercisable as of March 31, 2024	173	$	247.92	5.1	$	89

Schedule of Restricted Stock Unit Activity

A summary of RSU activity for the three months ended March 31, 2024 was as follows:


	Number of Shares	Weighted-Average Grant-Date Fair Value Per Share
	(in thousands)
Outstanding at December 31, 2023	6,262	$	506.77
Granted	2,385	$	776.39
Vested	(895)	$	497.53
Forfeited	(137)	$	524.91
Outstanding at March 31, 2024	7,615	$	591.99




Expected to vest as of March 31, 2024	6,652

Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Income Per Share


	Three Months Ended March 31,
	2024		2023
Numerator:
Net income	$	347	$	150
Denominator:
Weighted-average shares outstanding - basic	205,108		203,385
Weighted-average effect of potentially dilutive securities:
Common stock options	132		109
RSUs	2,418		769
ESPP obligations	26		—






Weighted-average shares outstanding - diluted	207,684		204,263
Net income per share - basic	$	1.69	$	0.74
Net income per share - diluted	$	1.67	$	0.73
Common stock options, RSUs and ESPP obligations excluded from diluted net income per share because their effect would have been anti-dilutive	3,168		7,731

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities as of March 31, 2024 are presented in the table below (in millions):



Remainder of 2024	$	92
2025	128
2026	105
2027	90
2028	86
Thereafter	422
Total operating lease payments	923
Less: imputed interest	(138)
Present value of operating lease liabilities	$	785

Information about Geographic Areas and Products (Tables)

3 Months Ended

Mar. 31, 2024

Segments, Geographical Areas [Abstract]

Revenues by Geographic Area, Based on Billing Location of Customer

Revenues by geographic area, based on the location of our users, were as follows for the periods presented (in millions):


	Three Months Ended March 31,
	2024		2023
North America(1)	$	1,637	$	1,344
EMEA(2)	676		532
Asia Pacific and other	290		220
Total revenues	$	2,603	$	2,096

Schedule of Long Lived Assets by Geographic Area

Property and equipment, net by geographic area were as follows (in millions):


	March 31, 2024		December 31, 2023
North America(3)	$	928	$	871
EMEA(2)	338		312
Asia Pacific and other	184		175
Total property and equipment, net	$	1,450	$	1,358

(1)Revenues attributed to the United States were 94% of North America revenues for each of the three months ended March 31, 2024 and 2023.

(2)Europe, the Middle East and Africa (“EMEA”).

(3)Property and equipment, net attributed to the United States were 78% and 79% of property and equipment, net attributable to North America as of March 31, 2024 and December 31, 2023, respectively.

Schedule of Subscription Revenue

Subscription revenues consist of the following (in millions):


	Three Months Ended March 31,
	2024		2023
Digital workflow products	$	2,231	$	1,790
ITOM products	292		234
Total subscription revenues	$	2,523	$	2,024

Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Jan. 01, 2024	Dec. 31, 2023
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Depreciation	$ 80	$ 81
Net income	$ 347	$ 150
Net income per share - basic (in USD per share)	$ 1.69	$ 0.74
Net income per share - diluted (in USD per share)	$ 1.67	$ 0.73
One Customer \| Accounts Receivable \| Customer Concentration Risk
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Concentration risk	11.00%
One Customer \| Revenue Benchmark \| Customer Concentration Risk
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Concentration risk	11.00%
Service Life
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Depreciation	$ 29
Net income	$ 23
Net income per share - basic (in USD per share)	$ 0.11
Net income per share - diluted (in USD per share)	$ 0.11
Service Life \| Data Center Equipment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Property and equipment, useful life (in years)			5 years	4 years

Investments - Summary of Investments (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 6,758	$ 6,205
Gross Unrealized Gains	6	13
Gross Unrealized Losses	(44)	(35)
Estimated Fair Value	6,720	6,183
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	337	349
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	337	349
Corporate notes and bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	4,050	3,579
Gross Unrealized Gains	5	10
Gross Unrealized Losses	(15)	(13)
Estimated Fair Value	4,040	3,576
Certificates of deposit
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	63	94
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	63	94
U.S. government and agency securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,206	2,081
Gross Unrealized Gains	1	3
Gross Unrealized Losses	(11)	(6)
Estimated Fair Value	2,196	2,078
Mortgage-backed and asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	102	102
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(18)	(16)
Estimated Fair Value	$ 84	$ 86

Investments - Narrative (Detail) - USD ($) $ in Millions	3 Months Ended
Investments - Narrative (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale [Abstract]
Contractual maturities	37 months
Continuous unrealized loss position, fair value	$ 4,821	$ 3,731
Continuous unrealized loss position, 12 months or greater, fair value	26
Non-marketable equity investment	$ 288	$ 268

Investments - Maturities of Available-for-Sale Investments (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale [Abstract]
Due within 1 year	$ 3,054
Due in 1 year through 5 years	3,582
Instruments not due in single maturity	84
Total	$ 6,720	$ 6,183

Fair Value Measurements (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 8,145	$ 7,778
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	1,172	1,510
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	6,973	6,268
Cash equivalents: \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	842	1,215
Cash equivalents: \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	114	79
Cash equivalents: \| Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	2
Cash equivalents: \| Deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	330	295
Cash equivalents: \| U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	139	4
Cash equivalents: \| Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	842	1,215
Cash equivalents: \| Level 1 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Cash equivalents: \| Level 1 \| Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Cash equivalents: \| Level 1 \| Deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	330	295
Cash equivalents: \| Level 1 \| U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Cash equivalents: \| Level 2 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Cash equivalents: \| Level 2 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	114	79
Cash equivalents: \| Level 2 \| Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	2
Cash equivalents: \| Level 2 \| Deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Cash equivalents: \| Level 2 \| U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	139	4
Marketable securities: \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	337	349
Marketable securities: \| Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	4,040	3,576
Marketable securities: \| Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	63	94
Marketable securities: \| U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	2,196	86
Marketable securities: \| Mortgage-backed and asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	84	2,078
Marketable securities: \| Level 1 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	0	0
Marketable securities: \| Level 1 \| Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	0	0
Marketable securities: \| Level 1 \| Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	0	0
Marketable securities: \| Level 1 \| U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	0	0
Marketable securities: \| Level 1 \| Mortgage-backed and asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	0	0
Marketable securities: \| Level 2 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	337	349
Marketable securities: \| Level 2 \| Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	4,040	3,576
Marketable securities: \| Level 2 \| Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	63	94
Marketable securities: \| Level 2 \| U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	2,196	86
Marketable securities: \| Level 2 \| Mortgage-backed and asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	$ 84	$ 2,078

Business Combinations (Details) $ in Millions		3 Months Ended
Business Combinations (Details) $ in Millions	Jul. 17, 2023 USD ($) xxx	Mar. 31, 2024 USD ($)	Mar. 31, 2023	Dec. 31, 2023 USD ($)
Business Acquisition [Line Items]
Goodwill		$ 1,224		$ 1,231
Developed technology
Business Acquisition [Line Items]
Weighted average useful life		5 years	5 years
G2K Group, GmbH
Business Acquisition [Line Items]
Cash payment to acquire businesses	$ 464
Number of installments \| xxx	2
Net tangible liabilities	$ 1
Deferred tax liabilities	23
Goodwill	413
G2K Group, GmbH \| Developed technology
Business Acquisition [Line Items]
Intangible asset acquired	$ 75
Weighted average useful life	6 years

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 622	$ 599
Less: accumulated amortization	(398)	(375)
Intangible assets, net	224	224
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	538	516
Patents
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	73	72
Other
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 11	$ 11

Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 24	$ 20
Developed technology
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	5 years	5 years

Intangible Assets - Schedule of Estimated Future Amortization of Intangible Assets (Details) $ in Millions	Mar. 31, 2024 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2024	$ 64
2025	68
2026	38
2027	24
2028	19
Thereafter	11
Total future amortization expense	$ 224

Property and Equipment (Detail) - USD ($) $ in Millions	3 Months Ended
Property and Equipment (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,773		$ 2,643
Less: Accumulated depreciation	(1,323)		(1,285)
Property and equipment, net	1,450		1,358
Depreciation	80	$ 81
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,254		2,136
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	98		96
Leasehold and other improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	315		292
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	90		86
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 16		$ 33

Property and Equipment - Narrative - (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Depreciation	$ 80	$ 81

Derivative Contracts - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Derivatives, Fair Value [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Total revenues
Foreign currency derivative contracts \| Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative, term of contract	34 months
Derivative, Notional Amount	$ 1,500
Foreign currency derivative contracts \| Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	2,100	$ 1,700
Forward Contracts
Derivatives, Fair Value [Line Items]
Derivative, Gain (Loss) on Derivative, Net	11
Forward Contracts \| Other Comprehensive Income (Loss)
Derivatives, Fair Value [Line Items]
Derivative, Gain (Loss) on Derivative, Net	$ 16

Derivative Contracts - Fair Value by Balance Sheet Location (Details) - Designated as Hedging Instrument $ in Millions	Mar. 31, 2024 USD ($)
Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Fair Value	$ 11
Other assets
Derivatives, Fair Value [Line Items]
Fair Value	$ 5

Deferred Revenue and Performance Obligations - Revenues Recognized from Deferred Revenues (Details) - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Deferred revenue recognized	$ 2.2	$ 1.8

Deferred Revenue and Performance Obligations - Transaction Price Allocated to the Remaining Performance Obligations (Details) $ in Billions	Mar. 31, 2024 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining non-cancelable performance obligations	$ 17.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied (percent)	48.00%
Performance obligations period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied (percent)	52.00%
Performance obligations period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 \| Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations period	13 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 \| Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations period	36 months

Debt - Narrative (Details) $ / shares in Units, $ in Millions	1 Months Ended
	Aug. 31, 2020 USD ($)	Mar. 31, 2024 USD ($) $ / shares	Dec. 31, 2023 USD ($) $ / shares
Debt Instrument [Line Items]
Estimated fair value of the note based on the closing trading price (in USD per share) \| $ / shares		$ 100	$ 100
2030 Notes
Debt Instrument [Line Items]
Long-term debt		$ 1,488
Unamortized debt discount and issuance costs, long-term			$ 12
Contractual interest rate, notes	1.40%
Debt term	10 years
Principal	$ 1,500	$ 1,500
Percentage of principle issued	0.9963
Payments of debt issuance costs	$ 13
Effective interest rate		1.53%
2030 Notes \| Level 2
Debt Instrument [Line Items]
Convertible Debt, Fair Value Disclosures		$ 1,216	$ 1,236

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 7,628	$ 5,032
Other comprehensive income (loss) before reclassifications	(31)	32
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Other comprehensive (loss) income	(31)	32
Ending balance	8,107	5,600
Unrealized Gains (Losses) on Derivative Instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	0	0
Other comprehensive income (loss) before reclassifications	12	0
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Other comprehensive (loss) income	12	0
Ending balance	12	0
Unrealized Gains (Losses) on Investments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(39)	(77)
Other comprehensive income (loss) before reclassifications	(13)	19
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Other comprehensive (loss) income	(13)	19
Ending balance	(52)	(58)
Foreign Currency Translation Adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	2	(25)
Other comprehensive income (loss) before reclassifications	(30)	13
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Other comprehensive (loss) income	(30)	13
Ending balance	(28)	(12)
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(37)	(102)
Other comprehensive (loss) income	(31)	32
Ending balance	$ (68)	$ (70)

Stockholders' Equity - Narrative (Detail) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	May 31, 2023
Equity [Abstract]
Shares of common stock, authorized (in shares)	600,000
Common stock, outstanding (in shares)	205,382		204,724
Common stock and Treasury stock issued under employee stock plans (in shares)	900	900
Stock repurchase program, authorized amount				$ 1,500
Common stock repurchased (in shares)	200
Common stock repurchased	$ 175
Stock repurchase program, remaining authorized amount	$ 787

Stockholders' Equity - Outstanding and Reserved Shares of Common Stock for Future Issuance (Detail) - shares shares in Thousands	Mar. 31, 2024	Dec. 31, 2023
Stock plans:
Options outstanding (in shares)	1,146	1,150
Total shares of common stock reserved for future issuance (in shares)	26,664
Amended and Restated 2021 Equity Incentive Plan
Stock plans:
Total shares of common stock reserved for future issuance (in shares)	9,657
Amended and Restated 2012 Employee Stock Purchase Plan
Stock plans:
Total shares of common stock reserved for future issuance (in shares)	8,246
Options outstanding
Stock plans:
Options outstanding (in shares)	1,146
RSUs
Stock plans:
RSUs (in shares)	7,615	6,262

Equity Awards - Narrative (Detail) $ in Millions	3 Months Ended
Equity Awards - Narrative (Detail) $ in Millions	Mar. 31, 2024 USD ($) plan shares	Mar. 31, 2023 USD ($)	Dec. 31, 2023 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity incentive plans \| plan	3
Increased in authorized shares (in shares) \| shares	10,000,000
Fair value of stock options vested	$ 6
Granted (in shares) \| shares	0
Total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options	$ 21
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining weighted-average period	1 year
Restricted stock units with service condition only
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding (in shares) \| shares	7,100,000
Restricted stock units with service and performance conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding (in shares) \| shares	500,000
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining weighted-average period	3 years
Number of shares outstanding (in shares) \| shares	7,615,000		6,262,000
Aggregate intrinsic value, vested	$ 700
Aggregate intrinsic value, outstanding	5,800
Aggregated intrinsic value, expected to vest	5,100
Unrecognized compensation expense expected to be recognized	$ 3,600
Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares eligible to vest (percent)	100.00%
Stock-based compensation expense, net of actual and estimated forfeitures	$ 39	$ 35
Performance-based RSUs \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares eligible to vest (percent)	0.00%
Performance-based RSUs \| Minimum \| Vesting, tranche one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting term	1 year
Performance-based RSUs \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares eligible to vest (percent)	200.00%
Performance-based RSUs \| Maximum \| Vesting, tranche one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting term	3 years
2012 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock purchase price percentage	85.00%
Award offering period	6 months

Equity Awards - Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) $ / shares shares
Number of Shares
Outstanding, beginning balance (in shares) \| shares	1,150
Exercised (in shares) \| shares	(4)
Forfeited (in shares) \| shares	0
Outstanding, ending balance (in shares) \| shares	1,146
Vested and expected to vest (in shares) \| shares	964
Vested and exercisable (in shares) \| shares	173
Weighted- Average Exercise Price Per Share
Outstanding, beginning balance (in USD per share) \| $ / shares	$ 603.30
Exercised (in USD per share) \| $ / shares	80.11
Forfeited (in USD per share) \| $ / shares	84.97
Outstanding, ending balance (in USD per share) \| $ / shares	605.06
Vested and expected to vest (in USD per share) \| $ / shares	591.47
Vested and exercisable (in USD per share) \| $ / shares	$ 247.92
Weighted-average remaining contractual term, outstanding	7 years 2 months 12 days
Weighted-average remaining contractual term, vested and expected to vest	7 years 1 month 6 days
Weighted-average remaining contractual term, vested and exercisable	5 years 1 month 6 days
Aggregate intrinsic value, exercised \| $	$ 2
Aggregate intrinsic value, outstanding \| $	180
Aggregate intrinsic value, vested and expected to vest \| $	165
Aggregate intrinsic value, vested and exercisable \| $	$ 89

Equity Awards - Restricted Stock Unit Table (Details) - RSUs shares in Thousands	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Number of Shares
Outstanding, beginning balance (in shares)	6,262
Granted (in shares)	2,385
Vested (in shares)	(895)
Forfeited (in shares)	(137)
Outstanding, ending balance (in shares)	7,615
Expected to vest (in shares)	6,652
Weighted-Average Grant-Date Fair Value Per Share
Outstanding, beginning balance (in USD per share) \| $ / shares	$ 506.77
Granted (in USD per share) \| $ / shares	776.39
Vested (in USD per share) \| $ / shares	497.53
Forfeited (in USD per share) \| $ / shares	524.91
Outstanding, ending balance (in USD per share) \| $ / shares	$ 591.99

Net Income Per Share - Schedule of Basic and Diluted Net Income Per Share Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net income	$ 347	$ 150
Denominator:
Weighted-average shares outstanding - basic (in shares)	205,108	203,385
Weighted-average shares outstanding - diluted (in shares)	207,684	204,263
Net income per share - basic (in USD per share)	$ 1.69	$ 0.74
Net income per share - diluted (in USD per share)	$ 1.67	$ 0.73
Common stock options, RSUs and ESPP obligations excluded from diluted net income per share because their effect would have been anti-dilutive (in shares)	3,168	7,731
Stock options
Denominator:
Potentially dilutive securities (in shares)	132	109
RSUs
Denominator:
Potentially dilutive securities (in shares)	2,418	769
ESPP obligations
Denominator:
Potentially dilutive securities (in shares)	26	0

Provision for Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income tax provision (benefit)	$ 78	$ 38

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Aug. 31, 2020
Debt Instrument [Line Items]
Operating lease costs	$ 33	$ 31
Operating lease liabilities, payments	19
Right-of-use assets obtained in exchange for operating lease liabilities	$ 11	$ 24
Weighted-average lease remaining lease term	9 years
Weighted-average discount rate	4.00%
Lessee, operating lease, lease not yet commenced. undiscounted cash flows	$ 60
Purchase agreement	$ 500
Purchase commitment, period	5 years
Unrecognized tax benefits	$ 57
Minimum
Debt Instrument [Line Items]
Operating lease term	1 year 6 months
Maximum
Debt Instrument [Line Items]
Operating lease term	10 years
2030 Notes
Debt Instrument [Line Items]
Principal	$ 1,500		$ 1,500

Commitments and Contingencies - Maturity of Operating Lease Liabilities (Details) $ in Millions	Mar. 31, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2024	$ 92
2025	128
2026	105
2027	90
2028	86
Thereafter	422
Total operating lease payments	923
Less: imputed interest	(138)
Present value of operating lease liabilities	$ 785

Information about Geographic Areas and Products - Geographic Disclosures (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Revenues by geography
Total revenues	$ 2,603	$ 2,096
Property and equipment by geography
Property and equipment, net	$ 1,450		$ 1,358
Percentage of U.S. revenues in North America	94.00%	94.00%
Percentage of U.S. net property and equipment in North America	78.00%		79.00%
North America
Revenues by geography
Total revenues	$ 1,637	$ 1,344
Property and equipment by geography
Property and equipment, net	928		$ 871
EMEA
Revenues by geography
Total revenues	676	532
Property and equipment by geography
Property and equipment, net	338		312
Asia Pacific and other
Revenues by geography
Total revenues	290	$ 220
Property and equipment by geography
Property and equipment, net	$ 184		$ 175

Information about Geographic Areas and Products - Subscription Revenues (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Subscription revenues	$ 2,603	$ 2,096
Digital workflow products
Segment Reporting Information [Line Items]
Subscription revenues	2,231	1,790
ITOM products
Segment Reporting Information [Line Items]
Subscription revenues	292	234
Total subscription revenues
Segment Reporting Information [Line Items]
Subscription revenues	$ 2,523	$ 2,024

ServiceNow (NYSE:NOW)
Historical Stock Chart
From Apr 2024 to May 2024

ServiceNow (NYSE:NOW)
Historical Stock Chart
From May 2023 to May 2024

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

NOW ServiceNow Inc

Latest NOW Messages

Loading Messages....

ServiceNow Inc News

Loading Messages....

Your Recent History

Company

Business

Popular

Get The App

Trending Now

Toplists

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

NOW ServiceNow Inc

Latest NOW Messages

Loading Messages....

ServiceNow Inc News

Loading Messages....

Your Recent History

Company

Business

Popular

Get The App