ServiceNow, Inc. (NYSE:NOW) Q3 2019 Earnings Conference Call - Final Transcript

Oct 23, 2019 • 05:00 pm ET


ServiceNow, Inc. (NYSE:NOW) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the ServiceNow Q3 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Lisa Banks, Vice President of Investor Relations. Thank you. Please go ahead, madam.

Lisa Banks

Thank you. Good afternoon and thank you for joining us for ServiceNow's Third Quarter 2019 Earnings Conference Call. On the call with me today are: John Donahoe, our President and Chief Executive Officer and Bill McDermott, our incoming, President and Chief Executive Officer.

During today's call, we will review our third quarter financial results and discuss our financial guidance for the full year 2019. We'd like to point out that the company reports non-GAAP results in addition to and not as a substitute for or superior to financial measures calculated in accordance with GAAP.

All financial figures we will discuss today are non-GAAP, except for revenues and remaining performance obligation. To see the reconciliation between these non-GAAP and GAAP results, please refer to our press release filed earlier today, our investor presentation and for future -- and for prior quarters previously filed press releases, all of which including a replay of today's call are posted at

We may make forward-looking statements on this conference call, which are subject to risks, uncertainties and assumptions. Please refer to the press release and risk factors in our SEC filings, including our most recent Annual Report on Form 10-K and quarterly report on Form 10-Q for information on risks and uncertainties that may cause actual results to differ materially from those set forth in such forward-looking statements.

I would now like to turn the call over to John.

John J. Donahoe

Thanks, Lisa. Good afternoon everyone and thank you for joining us in today's call. Given our announcement yesterday, here's how we're approaching our call today. First, I'll give a brief overview of Q3 results in our 2019 annual guidance. Second, I'll provide a little more insight of my decision to leave ServiceNow and accept an opportunity to lead a company that I have been associated with and admired for a very long time.

And finally before taking questions. You'll hear from Bill who will provide a little more context and why he chose ServiceNow and the opportunities he sees ahead. So let's start first with our third quarter results, we delivered another strong quarter, continuing our focus on driving customer success. Subscription revenues were $835 million, representing 35% year-over-year adjusted growth. This exceeded the midpoint of our previous guidance by $9 million including the impact of FX.

Subscription billings were 864 million representing 29% year-over-year adjusted growth, this exceeded the midpoint of our previous guidance by 10 million excluding the impacts of FX and duration. Our remaining performance obligations ended the third quarter at approximately $5.6 billion, representing 36% year-over-year adjusted growth. Current RPO was approximately $2.8 billion once again,