ServiceNow has unveiled strong financial results for Q4 2023, showing significant growth across all top-line metrics. It has also declared a number of new strategic partnerships. These robust results mark an important period for the company, particularly following the introduction of its Now Assist GenAI line.
The company's Q4 subscription revenues reached $2.365 billion, representing a 25.5% year-over-year growth in constant currency. The revenues surpassed the projections by 200 basis points above the top end of the company's guidance. Overall, the total revenues for the final quarter stood at $2,437 million. This suggests a 26% year-on-year growth, or 24% in constant currency.
Significant growth was also reflected in its full-year performance for 2023. ServiceNow reported a total full-year subscription revenue of $8.68 billion. This equates to a 25.5% growth in constant currency. Deals worth over $1 million in net new annual contract value (NNACV) saw an approximately 30% jump within 2023.
Credit is due in part to a successful product launch. The period following the introduction of the Now Assist GenAI portfolio, a line within the Service AI division, saw the largest net-new ACV contribution for the first quarter of any new product family release, boosting the overall positive financial trend.
In alignment with their financial results, ServiceNow has also revealed an array of strategic alliances. One noteworthy collaboration is a five-year agreement with payments giant Visa, marking an effort to innovate payment services experiences. The initial phase comprises the opening of ServiceNow Disputes Management, Built with Visa. This serves as an interconnected platform tailored to dispute resolution.
Moreover, ServiceNow has deepened its strategic alliance with leading advisory firm EY in a bid to encourage the responsible usage of AI for enterprise customers. This collaboration is set to deliver combined solutions for AI governance and compliance alongside AI-enhanced experiences for EY's clients and employees. New partner specialisations have further reinforced ServiceNow's commitment to its growing ecosystem, with a focus on Service Operations, serving the Customer, and powering the Employee.
In conclusion, ServiceNow's Q4 2023 financial results have soared beyond predictions across all growth and profitability metrics. The success was also underpinned by the largest net-new ACV contribution for the first quarter of any new product family and is complimented by exciting new partnerships that extend the company's ecosystem. It appears, undoubtedly, that ServiceNow remains ever-committed to digital workflow innovation.