Bill McDermott
Chairman and Chief Executive Officer at ServiceNow
Thank you very much, Darren, and thank you everyone for joining us today.
ServiceNow had an outstanding first quarter. Subscription revenue grew 27% in constant currency, which was 150 basis points above the high-end of our guidance. cRPO grew 25% in constant currency, 100 basis points above our guidance. Operating margin was 26%, two full points above our guidance. We had 66 deals greater than $1 million in net new ACV. We saw strong sustained demand for ServiceNow's platform. In January, we committed the company to performing beyond expectations. We said it, we did. Our Q2 guidance reflects our strong conviction in the fundamentals of this business. We remain laser-focused on net new innovation, new business growth, and profitability. ServiceNow is a growth company that consistently executes in any environment, and we will continue to do exactly that, execute.
Looking at the big picture, there's no question this remains a complicated macro environment. C-level leaders are managing an endless array of headlines and mixed signals. When you filter out all that noise, it comes down to one simple reality. There is an app for everything, but nobody wants every app. This consolidation is a tailwind for ServiceNow as the intelligent platform for end-to-end digital transformation. We are now seeing conversations up-level to business transformation. This is bringing CEOs directly into the process as principal executive sponsors.
Nearly 40% of CEOs think their company will no longer be economically viable in a decade if they continue on the current path. They aren't interested in turf battles between departments, they want enterprise-level investment to drive business impact. This isn't merely an inspection of what historically has been a big call center, this is CEOs engaging on a strategic level and insisting on a clear roster of technology partners to drive very specific business outcomes. For example, when it comes to technology in the age of generative AI, it's a build, buy, operate conversation. They're looking for a single platform that can orchestrate the entire technology value chain, ServiceNow does just that. Businesses are also working hard to transform their customer experience. The AI opportunity here is when you integrate the front, middle, and back-offices to better serve that customer. This is a ServiceNow core competency.
On the internal side, it's about reducing the number of touch points for employees to get work done. People can't maximize their potential by juggling multiple systems with different user experiences. Our customers use ServiceNow as the one-stop digital hub to create a consumer-grade experience at work. Whether it's efficiency, productivity, cost take-out or business model innovation, ServiceNow has never been more relevant. This is the message I hear directly from CEOs, who know they need to shake things up and they want our help to do it.
Once again, these secular trends are fueling ServiceNow. About 70% of global tech equity value comes from firms that rely on network effects, and we see growing platform adoption across all of our businesses. ITSM was in 18 of our top 20 deals with three deals over $1 million. ITOM was in 14 of the top 20 with five deals over $1 million. With increased focus on cost take-out, ITAM had a very strong quarter in 14 of our top 20 with three deals over $1 million. Security and risk were in 12 of the top 20 with three deals over $1 million. Customer Workflows was hot in Q1 in 18 of the top 20 with nine deals over $1 million. And this is worth emphasizing because ServiceNow is more relevant than ever as businesses invest in a differentiated experience for their end consumers. Very exciting indeed what we're doing with Customer Service Management. Employee Workflows was in 10 of the top 20 with four deals over $1 million. Creator Workflows was in 18 of the top 20 with three deals over $1 million.
Major global brands continue to accelerate their own transformations by working with ServiceNow, Marriott, Grupo Bimbo, Navy Federal Credit Union, Travelers, the US Air Force, and Schneider Electric, just to name a few. Look at banking as one example. PNC works with ServiceNow to modernize the way it manages disputes, which will reduce losses and improve case closures. We also saw major co-innovation milestones in the quarter. For example, ServiceNow and AT&T have created a global telecom product to help communication service providers manage 5G and fiber network inventory. Q1 was also the latest step forward for our organic innovation machine.
The ServiceNow Utah release was engineered to drive faster business outcomes for our customers. The release includes AI-powered process mining with robotic process automation capabilities, additional search enhancements, expanded workforce optimization, and health and safety incident management. These are all designed to help increase automation, simplify experiences, and offer greater organizational agility. It bears repeating that while customers are aware of market excitement for individual technologies, like generative AI, they expect a platform strategy to integrate the various tools. ServiceNow had AI, process mining, RBA, low-code, and many other technologies build natively into a single workflow automation platform. Of course, we will have much more to say about all of this at our Knowledge event in Las Vegas on May 16th. I hope you can join us. I'd also like to extend a warm welcome to Deborah Black, Vice President, Engineering at Netflix, who is the newest member of ServiceNow's Board of Directors. We're so proud to have Debbie's leadership on our journey to be the defining enterprise software company of the 21st century.
In closing, I'll simply reiterate things we've said consistently. First, businesses need ServiceNow. Enterprise software is mission-critical. The demand environment is robust. Second, ServiceNow is a unique company performing at a very high level. We are delivering strong growth, aggressively managing costs, and creating immense shareholder value. The Company has momentum everywhere. We are performing very well across the Best Places to Work scorecards, including Glassdoor. Our brand recognition is increasing, as we rise on lists like Fortune's Most Admired Companies. Our market opportunity is expanding. And this is the early days of a truly generational growth story.
Finally, we know that trust is the ultimate human currency. What we have here is a platform, a culture, and company that is built entirely on trust. The results tell that story. We just eclipsed the $2 billion threshold in a single quarter, and we were the fastest ever to do that on an organic basis. This is about a fast growth, durable, predictable cloud business model. This will be the red thread at our Financial Analyst Day in a few weeks. We look forward to seeing you all there. Businesses work with ServiceNow, people work with ServiceNow, the world works with ServiceNow, and we're only getting started.
I'd like to thank you very much for your time today. Looking forward to your questions. And for now, I'll hand things over to Gina.