ServiceNow, Inc.

Thank you for standing by. And welcome to the ServiceNow first quarter 2022 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, please press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. Darren Yip, Vice President of Investor Relations. You may begin your conference.

Good afternoon and thank you for joining ServiceNow's first quarter 2022 ratings call. Joining me are Bill McDermott, our President and Chief Executive Officer, and Gina Mastantino, our Chief Financial Officer. During today's call, we will review our first quarter 2022 results and discuss our guidance for the second quarter and full year 2022. Before we get started, we want to emphasize that some of the information discussed on this call, such as our guidance, is based on information as of today and contains forward-looking statements that involve risks, uncertainty, and assumptions. We undertake no duty or obligation to update such statements as a result of new information or future events. Please refer to today's earnings press release and our SEC filing including our most recent 10Q and 2021 10K for factors that may cause actual results to differ materially from forward looking statements. We'd also like to point out that we present non-GAAP measures in addition to and not as a substitute for financial measures calculated in accordance with GAAP. Unless otherwise noted, all financial measures and related growth rates we discussed today are non-GAAP, except for revenues, remaining performance obligations or RPO, current RPO, and cash and investment. To see the reconciliation between these non-GAAP and GAAP measures, please refer to today's earnings press release and investor presentation, both posted on our website at investors.servicenow.com. A replay of today's call will also be posted on our website. With that, I'll turn the call over to Bill.

Thank you very much, Darren, and good afternoon, everyone. We really appreciate you joining our call today. We're pleased to once again report results that firmly beat expectations. In January, we reported a stellar 2021. Today, we're following that up with a very strong Q1. The constant currency numbers speak for themselves. Subscription revenue growth was 29%. CRPO growth was 30.5%. Operating margins surpassed 25%. And all were above the high end of our guidance range. In fact, our RAISE guidance today, which Gina will cover shortly, also speaks for itself. As does the 52 deals, over one million in Q1, that were up 41% year over year. It's clear that the world is beginning to understand the power of this platform. We said in January that our fast growth would accelerate in Q1. It did. Now, three months later, We expect subscription revenue growth to accelerate for the full year. It will. We said that ServiceNow's fast growth would continue to be paired with the leverage of a global market leader. Now, with our accelerating revenue growth and free cash flow, we're already approaching the rule of 60 for the full year. We have strong adoption from existing and net new customers. Our rolling four-quarter pipeline remains ever strong. We're delivering predictable fast growth with exceptional free cash flow. Overall, we're super excited about the state of this business. We believe it sets us up really well for the remainder of 2022 and beyond. I do want to offer a few comments on what we're seeing in the broader marketplace. we've talked about a sustained demand environment for the enterprise. While there are significant challenges in the world, particularly in the Eastern European situation, we have not seen a material impact on our market. To the contrary, the challenges have underscored the urgency of investment in digital business. IDC continues to see a 23% year-over-year increase in the global public cloud market for 2022. We see similar indications of demand durability, which are consistent with or above the 10-year pre-COVID average. Leaders who do plan to adjust their technology budgets plan to increase investments in 2022. One leader put it well. He said, Bill, if we slow investment in the short term, we'll lose ground in the midterm, and we won't be in business for the long term, end quote. And the data tells the same story. The average tenure of a company in the S&P 500 has declined from 30 years in 1996 to 19 years in 2021. So it's very clear that business can no longer revert to a status quo posture, no matter the environment. We're now in a tech-to-compete world. If you look to our new customer acquisition, here's what resonates. Businesses are shifting investment to technologies that get them to the right outcomes faster. Cloud-native platforms like ServiceNow are seen as an elixir to speed up new revenue streams and better experiences for people. When we see increased focus on topics like supply chain, risk, security, ESG, All of these convert what was perceived headwinds into much stronger secular tailwinds for ServiceNow. So the world's biggest problems are really ServiceNow's biggest opportunities. And it all adds up to what we said consistently. The technology architecture is now the business architecture. This is the era for digital business. Our businesses are firing on all cylinders in this environment. Behind great experiences are great workflows, which underscores the unique extensibility of the ServiceNow platform. So here it is. Our core technology workflows business performed well in Q1. ITSM was in 11 of our top 20 deals, which continued strong adoption of ITSM Pro. We continue to see strong attach rates from ITOM, in 13 of our top 20 deals. Security and risk had a great quarter, with a combined 13 deals in the top 20. Global biotech innovator, Regeneron, works with ServiceNow to increase productivity while decreasing costs. Global financial leader, RBC, works with ServiceNow for cloud and asset tracking. I'd also like to thank RBC for administering the ServiceNow Racial Equality Fund. The only way for companies to transform the customer experience is to fully integrate their employee experience. Customer workflows continue to see strong demand, particularly with our vertical SKUs. Barclays works with ServiceNow to automate cross agency case management in compliance with EU data privacy requirements. In this post-pandemic economy, many businesses are creating direct-to-consumer business models. Companies like Telefonica Brazil work with ServiceNow to better serve their next generation customers. Employee workflows were also strong in the quarter. HR was in 14 of the top 20 deals. Global healthcare solutions company Amerisource Bergen works with ServiceNow to transform their employee experience. In the digital business era, differentiation can't be bought. It must be built. IDC now forecasted 750 million net new applications will be created between 2023 and 2025. With the unprecedented demand for net new innovation, together with a global shortage of professional developers, low code application development is a massive market opportunity. While tech leaders see the value of citizen developers, they don't want to sacrifice the enterprise-grade governance and security. This is what gives ServiceNow a unique differentiation in the low-code market. Look at Daiichi Life Insurance, one of the world's largest insurance companies, which is standardized on App Engine for all low-code application developments. With creator workflows in 16 of the top 20 Q1 deals, we see this trend accelerating. A leading manufacturer of print inks, DIC, works with ServiceNow as their new citizen developer platform, one of many such examples. Here's a key takeaway. Businesses are no longer in the mood to experiment. They go with what they know works. which is why the world works with ServiceNow. We are the only one with a fully integrated platform architecture that can address every C-suite business challenge. Because enterprises are so focused now on fast time to value, our new customer success subscription offering, ServiceNow Impact, also saw a strong demand in Q1. And as ever, the ServiceNow platform is the foundation for our ongoing success. We're encouraged by the extremely favorable reception from our San Diego platform release. In particular, users love the Next experience, which streamlines navigation, makes search intelligent, and simplifies personalization all on our platform. We also unveiled a new automation engine, which makes it simple for users to do robotics, process automation on the ServiceNow platform. Only ServiceNow can help businesses unify their approach to hyper automation. We now orchestrate AI, RPA, and other key technologies on a single low-code platform. Fred Luddy founded our company in San Diego, so this release was an especially proud moment for all of us. I'd like to personally salute our product and engineering teams for the transformational work they delivered in our San Diego release. Congratulations, team. Outstanding job. Looking forward, we see many positive developments that affirm our confidence in this business. Investment from our partner ecosystem continues to accelerate nicely. Thierry Delaporte, CEO of Wipro, said the following. Bill, we couldn't be more excited about the potential of ServiceNow. You bring a whole new dimension to customer success and technology innovation. We are all in. This outstanding partnership with Wipro is only just getting started. We also have our signature event series, Knowledge 22, taking place in May. Each of four locations will demonstrate the high enthusiasm of the growing ServiceNow community. We will have showcases in The Hague, New York City, Sydney, and Las Vegas, in addition to a fully digital experience. So please join us. So in closing, we had a great Q1. Everything is lined up for us to follow suit in Q2 and for the full year. We're taking steps forward every day to our stated milestone, 10 billion plus by 2024, 15 billion plus. by 2026 and beyond. It's worth reiterating at this time that we remain on track to be the fastest ever to hit those thresholds. Finally, beyond the business results, I'd like to offer the heartfelt support of our more than 18,000 ServiceNow colleagues worldwide to those confronting humanitarian crisis, especially in Ukraine. Like so many of our customers and peers, ServiceNow is pursuing numerous opportunities to support relief efforts. By continuing to do well, we confer to commit our company to doing good. This is firmly aligned to our purpose of making the world work better for everyone. Herein lies our path to be the defining enterprise software company of the 21st century. Ladies and gentlemen, we are a company on the move. I'd like to thank you again for your time and your trust and service now. We're looking forward to addressing any questions you may have. And I'll now hand it over to our great CFO, Gina Mazzantuno. Gina?