Strong Subscription Revenue Growth
Subscription revenue grew 20.5% year-over-year in constant currency, which was 1 full point above the high end of guidance.
Operating Margin and Free Cash Flow Margin Exceed Expectations
Operating margin was 33.5%, 3 full points above guidance. Free cash flow margin was 17.5%, up 50 basis points year-over-year.
AI Products Drive Growth
AI products are on pace to exceed $0.5 billion in ACV this year, with Now Assist deal volume more than quadrupling quarter-over-quarter.
Federal Business Success
U.S. federal business surpassed net new ACV expectations for the quarter, growing over 30% year-over-year.
Increased Guidance for 2025
Raised 2025 subscription revenue guidance by $55 million and full-year operating margin target to 31%.