Analysis of Revenues
Revenues as Reported
ServiceNow Inc., income statement, revenues
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Revenues demonstrate a consistent upward trajectory over the five-year period. This growth is primarily driven by the subscription component, while professional services and other revenues exhibit a more moderate increase. Overall revenue growth appears to be accelerating in recent years.
- Subscription Revenue
- Subscription revenue increased steadily from US$5,573 million in 2021 to US$12,883 million in 2025. The growth rate appears to be increasing, with larger absolute increases observed in later years. Specifically, the increase from 2021 to 2022 was US$1,318 million, while the increase from 2023 to 2024 was US$1,966 million, and from 2024 to 2025 was US$2,237 million. This suggests a strengthening demand for subscription-based offerings.
- Professional Services and Other Revenue
- Professional services and other revenue experienced more modest growth, rising from US$323 million in 2021 to US$395 million in 2025. There was a slight decrease observed between 2022 and 2023 (US$354 million to US$291 million), but this was followed by increases in subsequent years. While positive, the contribution of this segment to overall revenue remains relatively small compared to subscription revenue.
- Total Revenues
- Total revenues mirrored the trend in subscription revenue, increasing from US$5,896 million in 2021 to US$13,278 million in 2025. The compound annual growth rate (CAGR) appears substantial, indicating strong overall performance. The largest year-over-year increase occurred between 2023 and 2024, with a US$2,013 million increase. The increase from 2024 to 2025 was US$2,294 million, continuing the acceleration.
- Revenue Composition
- The proportion of revenue derived from subscriptions consistently increased over the period. In 2021, subscription revenue represented approximately 94.5% of total revenue. By 2025, this figure rose to approximately 97.0%. This indicates a strategic shift towards a subscription-based business model and increasing reliance on recurring revenue streams. Professional services and other revenue correspondingly decreased as a percentage of total revenue.
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