Bill McDermott
President and Chief Executive Officer at ServiceNow
Thank you, Darren, and hello, everyone. We appreciate you joining us for today's call. ServiceNow's Q2 results once again beat expectations on the top line and the bottom line. Revenue growth was 29.5% at constant currency. Operating margin was 23%. Both results were above our guidance for the quarter. Our 99% renewal rate remains the industry's benchmark. We had 54 deals over $1 million. Our 27% constant currency cRPO growth is also strong. And looking forward for a moment, once you factor the large renewal cohort effect in Q3, our full year cRPO outlook is also strong. Like other premier technology companies, we are managing through the current macro.
As you'll hear from Gina, we're simply returning to the outlook we originally set for you in January of this year on a constant currency basis. Unlike others, while the currency effect also applies pressure on our margin, ServiceNow will maintain our full year margin guidance of 25%. We will absorb the impact through disciplined cost management as we run more efficiently on the ServiceNow platform. Looking beyond 2022, our confidence in our midterm aspirations, which we raised earlier this year to $11 billion plus by 2024 and $16 billion plus by 2026 is rock solid.
In short, ServiceNow's iron-clad fundamentals will not waver. The secular digital transformation tailwinds are blowing stronger than the macro crosswinds. ServiceNow generates an unmatched combination of organic growth and profitability at scale. We believe there is a generational value creation opportunity here on every level of our company. Therefore, we are hiring, expanding and investing for the future. Growth companies don't get stronger than this one.
Before I hand things over to Gina, let me offer some additional color to underscore the state of the business. Enterprise software is an all-weather industry. Some businesses out there are prioritizing enhanced productivity to lower costs. Others are evolving business models to stimulate growth. All of them know full well that digital technology is the only answer. That's why the demand environment to software is consistent and durable. Market research from IDC and several prestigious institutions on this call, I might add, have all affirmed the stability of technology budgets.
We also see consolidation of enterprise software as buyers shift further away from experimentation with unsustainable solutions. So when you think about the technology sector, they're on niche vendors, legacy leaders and platforms. ServiceNow is a platform company with strong demand in a fast-changing world. And this is consistent with what we see from our customers. It's all about reprioritization. Customers are making significant investments with fewer platforms to drive faster ROI. As this process unfolds, while sales cycles can lengthen, deal sizes get bigger as more materials are negotiated into those agreements. And we at ServiceNow, are on the right side of the great reprioritization.
One customer summed things up well. She said, "We have a capacity challenge, not for ServiceNow, but for all the others that want to be like ServiceNow. It's time to standardize on the platforms we trust for the long haul." The current macro environment likely will move overnight, neither will the theme for automation as companies need to make money, save money and differentiate, and they need to do all of that really fast. Time has become the greatest asset of business. When you look at our results and our opportunity, it's clear evidence that digital transformation is the only way forward. ServiceNow is helping our customers innovate to win.
Our ability to execute is another key point of confidence. This is a proven team. And what's happening here is about more than great business results. It's about honoring Fred Luddy's founding vision, to change the paradigm of enterprise software. That's why, from a technology perspective, ServiceNow has maintained a fully integrated workflow automation platform that gives everyone the great experiences they deserve. With artificial intelligence, robotic process automation, process mining and low-code capabilities all embedded in our architecture, we make hyperautomation about people.
With 750 million net new applications being built on the horizon, ServiceNow is leading the low-code revolution, our born in the cloud suite of applications stretches across the enterprise end to end. And all of our businesses are performing extremely well. In Q2, ITSM was in 12 of the top 20 deals with seven deals over $1 million. ITOM was in 13 of the top 20, nine deals over $1 million. Customer workflows was in 14 of the top 20. Employee workflows, 13 of the top 20, and creative workflows was in a remarkable 20 of the top 20.
World-class brands like Dun & Bradstreet, Banco Bradesco, Virgin Media Ireland and CDW are some of the many selecting or expanding on ServiceNow. Adobe works with ServiceNow to transform the way it serves employees, driving 30% faster care resolutions for everyday requests. NTT Data works with ServiceNow to generate end-to-end visibility of their ESG performance, and they also provide ServiceNow's ESG solution to their own customers. Things Hawaiian works with ServiceNow to streamline its end-to-end procurement operations. Frankly, ServiceNow has become the platform for digital business.
And looking at SaaS businesses across the industry that have built $200 million or greater in ACV businesses, it's important to call out that ServiceNow has actually accomplished that milestone with 11 businesses in our current portfolio. And several of these businesses achieved that $200 million-plus figure faster than many prominent publicly traded software companies. So we see countless opportunities to build on this with expansion into additional adjacencies, and most of these adjacencies will be built on our platform like you're seeing with ERP workflows.
Others might operate as integrated portfolio businesses that benefit from our strong installed base across the Global 2000. And one example here is Lightstep, which is delivering observability and incident response to some of the world's most innovative companies. Overall, ServiceNow is hitting its stride as a platform, as a business architecture and as a commercialization engine. And next up is our Tokyo platform release coming in September. I'm heading to Tokyo personally, and this will be a major milestone in our growing commitment to the Japan market and our pursuit of our annual objectives.
The final point I'd like to stretch -- stress is this fast-expanding ServiceNow ecosystem. This is happening with some of our most strategic partners. Through our partnership with Microsoft, our technology workflows help customers streamline the migration of existing workloads to Azure. This is opening additional addressable market to ServiceNow by creating an expanded co-sell motion with Microsoft enterprise sales and public sector teams. This is about incremental net new revenue growth. We are not opportunity constrained. The need for digital transformation continues to grow, and enterprise software remains a defining deflationary force in this marketplace.
The ecosystem effect also applies to the talent marketplace. There's a massive opportunity to talented professionals who aspire to build their future on ServiceNow. And as an employer, while others in the tech industry are slowing or even stopping hiring, ServiceNow is hiring. We are hiring. We are doubling down on our talent brand. And that's a reflection of our deep belief and the amazing potential of this company. Our customers and partners are also expanding their ServiceNow workforces at a record clip, which is another indication of the expansive cross-enterprise adoption we are seeing for the ServiceNow platform.
Finally, ServiceNow's Impact solution is a critical piece of our ecosystem strategy. We are setting a new standard with respect to fast deployment and value realization. The faster we implement, the more we expand the use of the platform. It all adds up to a virtual cycle for stakeholders and for ServiceNow. In closing, we are confronting reality but not conforming to it. Our Q2 beat on the top line and the bottom line reinforces who we are. The digital transformation imperative will not shift to the sidelines.
I would like to thank our customers, our partners and our shareholders for their continued trust and confidence in ServiceNow. We're proud to help you make the world work better for everyone. We will continue full speed on our growth journey to be the defining enterprise software company of the 21st century. We are resolute because now as ever, the world works with ServiceNow.
With that, I'll hand things over to Gina. Gina, over to you.
