Filing Flows › ServiceNow (NOW) › Q1 2025
ServiceNow (NOW) Q1 2025 earnings results (first quarter 2025)
10-Q filed Apr 23, 2025
ServiceNow (NOW) reported revenue of $3.1B for the first quarter 2025 (Q1 2025), +19% from a year earlier and +4% from the quarter before. Operating margin was 14.6%, net earnings $460M (14.9% of revenue).
ServiceNow, Q1 2025: revenue $3.1B (+19% year over year), operating margin 14.6%, net earnings $460M, operating cash flow $1.7B. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $3.1B | +4% | +19% |
| Gross profit | $2.4B | +5% | +17% |
| Operating profit | $451M | +21% | +36% |
| Net earnings | $460M | +20% | +33% |
| Operating cash flow | $1.7B | +3% | +25% |
| Free cash flow | $1.5B | +7% | +22% |
What changed
Revenue was $3.1B in Q1 2025, up 19% year over year and up 4% from the previous quarter. Subscription was the largest line at 97% of revenue. Subscription added $0.48B year over year (up 19%), 99% of the total change.
Gross margin was 78.9%, down 1.1 points from a year earlier. Operating profit was $0.45B, a 14.6% margin (up 1.9 points year over year). Of the extra revenue versus a year earlier, 25% reached operating profit, above the 13% margin then. Operating expenses grew 13% against revenue growth of 19%. The fastest-growing cost line was Research & development (+16%). Net earnings were $0.46B, up 33% year over year. The effective tax rate was 17.1%.
Operating cash flow was $1.7B (up 25% year over year), 365% of net earnings. Non-cash charges added back $0.16B of depreciation and amortization and $0.47B of share-based compensation. Working capital and other items added $0.59B. Capital expenditures of $0.20B left free cash flow of $1.5B.
Questions
What was ServiceNow's revenue in the first quarter 2025?
ServiceNow (NOW) reported revenue of $3.1B for the first quarter 2025 (Q1 2025), +19% from a year earlier and +4% from the quarter before.
Was ServiceNow profitable in the first quarter 2025?
Operating profit was $451M (14.6% of revenue) and net earnings $460M.
Source: ServiceNow 10-Q on SEC EDGAR.