The total RPO reached $22.1 billion, representing a 25% increase YoY, indicating strong future revenue visibility. This growth is driven by factors such as contract duration and the timing of contract renewals.

ServiceNow signed a definitive agreement to acquire Moveworks, a privately-held company that provides agentic AI assistants, for approximately $2.9 billion. This acquisition is expected to close during the second half of 2025 and will enhance ServiceNow's AI capabilities.

The number of customers with ACV (Annual Contract Value) greater than $5 million increased to 508, up from 425 in the prior year. This indicates a growing customer base and demonstrates the value customers are receiving from the Now Platform.

The renewal rate remained consistent at 98%, indicating strong customer satisfaction and effective management of customer relationships. This high renewal rate contributes to the stability and predictability of future revenues.

Sales and marketing expenses increased by $131 million YoY, but the percentage of revenue decreased slightly, indicating improved sales productivity and marketing efficiencies. This suggests effective management of sales and marketing investments.

The company disclosed an internal investigation into potential compliance issues related to a government contract, resulting in the resignation of the President and Chief Operating Officer. This demonstrates management's commitment to addressing compliance concerns, although the ultimate impact is uncertain.

The company is closely monitoring the ongoing conflicts in Russia/Ukraine and the Middle East, but does not believe these conflicts will have a material impact on the 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.

The Company initiated an internal investigation, with the assistance of outside legal counsel, into the validity of these claims that concern the hiring of the Chief Information Officer of the U.S. Army as the Company's Head of Global Public Sector in March 2023. As a result of the investigation, the Company's board of directors determined that the Company's President and Chief Operating Officer and the hired individual violated Company policy regarding a possible conflict relating to such individual's hiring

Fluctuations in foreign currency exchange rates as of the balance sheet date will cause variability in our RPO. 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.

Subscription revenues increased by $482 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily driven by increased purchases by new and existing customers. This indicates a strong competitive position and ability to attract and retain customers.

We expect R&D expenses for the year ending December 31, 2025 to increase in absolute dollars but remain relatively flat as a percentage of revenue compared to the year ended December 31, 2024, as we continue to improve the existing functionality of our services, develop new applications to fill market needs and enhance our core platform.

In April 2025, we signed a definitive agreement to acquire Logik.ai, a provider of an Al-powered, composable Configure, Price, Quote (“CPQ”) solution. The determination of the final value of the purchase consideration, payable in a combination of equity and cash, will depend on the Company's stock price as of the close of the transaction, subject to customary purchase price adjustments. The acquisition is subject to customary regulatory approvals and closing conditions.

Cost of professional services and other revenues increased by $11 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily driven by an increase in partner ecosystem spend to further help accelerate customer value realization. Our professional services and other gross loss percentage was 8% for the three months ended March 31, 2025, compared to a gross profit percentage of 1% for the three months ended March 31, 2024, and was primarily driven by partner ecosystem spend to further help accelerate customer value realization increasing at a faster rate than revenue.

G&A expenses increased by $7 million YoY, but the percentage of revenue decreased slightly, indicating improved G&A productivity. This suggests effective management of administrative costs.

We have entered into a non-cancellable agreement with an information technology equipment provider, under which we have committed to spend $1.9 billion through 2028 on capital expenditures to expand our data centers.

Research and development (“R&D”) expenses increased by $97 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to increased headcount, resulting in an increase in personnel-related costs including stock-based compensation and overhead expenses of $83 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

In March 2025, ServiceNow signed a definitive agreement to acquire Moveworks, a privately-held company that provides agentic Al assistants, for approximately $2.9 billion. The acquisition is expected to close during the second half of 2025, subject to customary regulatory approvals and closing conditions.

In April 2025, ServiceNow signed a definitive agreement to acquire Logik.ai, a provider of an Al-powered, composable Configure, Price, Quote (“CPQ”) solution. The acquisition is subject to customary regulatory approvals and closing conditions.

During the three months ended March 31, 2025, the Company repurchased 0.3 million shares of its common stock for $298 million. As of March 31, 2025, approximately $3.0 billion of the authorized amount under the share repurchase program remained available for future repurchases.

The company is allocating capital towards strategic acquisitions such as Moveworks and Logik.ai to enhance its AI capabilities and expand its product offerings. These acquisitions are expected to contribute to future growth and market leadership.

We have entered into a non-cancellable agreement with an information technology equipment provider, under which we have committed to spend $1.9 billion through 2028 on capital expenditures to expand our data centers.

The provided 10-Q filing does not contain specific details regarding environmental commitments, social responsibility initiatives, or governance practices. Further information would be needed to assess the company's ESG performance.

Additionally, other macroeconomic events, including interest rates, global inflation and tariffs, 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 are closely monitoring the ongoing conflicts in Russia/Ukraine and the Middle East. 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.

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.