Chairman and Chief Executive Officer at ServiceNow
Thank you very much, Darren. And I'll add my welcome to everyone joining today's call. ServiceNow had an outstanding third quarter. Looking at the top line results in constant currency, subscription revenue was 28.5% growth. cRPO growth was 25%. On profitability, operating margin was 26%. All three metrics are above our guidance, beating expectations once again.
ServiceNow had 69 Q3 deals greater than $1 million. Our US federal business had its best quarter ever in Q3. We saw strength across industries and business segments. Our performance was consistent globally, with Europe executing especially well this quarter. Our renewal rate remains best-in-class at 98%.
We are the largest organically grown enterprise software company. We have an unmatched combination of organic growth and profitability at scale. As these Q3 results demonstrate, we fully intend to maintain this leadership position.
Regarding the operating environment, in recent quarters, we said that secular tailwinds were stronger than macro crosswinds. They are. Nothing we saw in Q3 changes this core thesis. Digital technology is a deflationary force. The enterprise digital transformation market is validated. The investment thesis is stronger than ever. Hybrid multi-cloud deployments, adoption of a modern data infrastructure stack, cybersecurity and risk management, AI and data analytics, remote work and collaboration, these trends are not only durable, their relevance is expanding.
There'll be 750 million new applications built by 2025. In the US alone, nearly 100 million workers will remain in hybrid environments. 27 billion connected devices will drive more data into cloud over the next three years. And ServiceNow's platform directly addresses all these challenges, which translates to numerous growth vectors for our business.
I hear one thing from CEOs consistently. Anything we prioritize must generate results in weeks or months. This is the essence of the great reprioritization. In past decades, waves of enterprise systems were introduced to meet market challenges of those times -- operating systems, databases, applications.
What we see now is a generational shift from architectures built in the last century to platforms engineered for this one. If you look at the ERP market, we see customers at various stages of their move to the cloud. Some of the world's largest manufacturers, for example, are consolidating hundreds of old procurement processes into a modern workflow experience. This declutters the legacy environment, driving more than $1 billion in cost efficiencies for just one of our many ERP wins this quarter.
We could do it because ServiceNow was born in the cloud. We integrate with everyone. We meet our customers wherever they are, any environment, any organizational structure, any operating model. Where there is complexity, we simplify. We are fast to deploy, fast to generate ROI. In this need for speed environment, the ServiceNow platform is becoming the strategic center of gravity for our customers.
In light of this, today, we're announcing a new initiative, RiseUp with ServiceNow, to skill 1 million ServiceNow certified professionals by 2024. Our customers, partners and ServiceNow itself are all growing as ServiceNow workforces. We see opportunity everywhere. With RiseUp with ServiceNow, we'll give people the knowledge to seize it.
Overall, the demand environment is strong. The market opportunity is growing. The ecosystem is expanding. ServiceNow is a growth company on every level.
We see the growth across multiple buyer personas as customers consume more of our expanding solution portfolio. In Q3, both ITSM and ITOM were in 17 of our top 20 deals, with 6 deals each over $1 million. Security and risk were in 15 of the top 20, with 5 deals over $1 million. Customer and employee workflows were each in 12 of the top 20. Once again, we saw creator workflows in all the top 20 deals, with 9 deals over $1 million.
Customers view ServiceNow as mission-critical. The Defense Logistics Agency works with ServiceNow to support the global defense supply chain with automated workflows. Faced with the crisis of Hurricane Ian, the State of Florida worked with ServiceNow to deploy a mission-critical application to manage requests from people searching for their loved ones. In crisis situations, weeks to deploy isn't an option, which is why the state did it on ServiceNow in a few hours.
Deutsche Telekom provided KPN works with ServiceNow to reduce their order management process from three days to under a minute, saving millions.
Thank you. These stories are everywhere. In fact, one CEO who chose ServiceNow for the first time said it best. "To me personally, it's always easier to make a strategic partner decision when you trust the people on the other side of it."
In late September, we announced the ServiceNow Tokyo release. We delivered AI-powered task intelligence, which is all about making the customer service agent's life more productive, reducing manual effort, speeding time to resolution and improving the customer experience.
On the revenue-facing side, we delivered enhancements to order management, including support for bundling, configurable products and pricing models. We delivered major advances in field service operations and dispatch, with scheduled optimization and territory planning. These capabilities help our customers better manage their costs, but also their ESG footprint. At a moment when customer service is at the very top of C-level agenda, ServiceNow's net new innovation is driving and transforming the front office.
For technology leaders, we released a new service operations workspace which will deliver faster incident resolutions to keep people highly productive. And given the ongoing migration to the cloud, we released a new licensed cloud cost simulator, so leaders can model the cost benefits by moving from on-premise to cloud deployments.
The Tokyo release contains many more new features across each of our major workflow businesses, technology, customer, employee and creator. It is the latest demonstration that ServiceNow's products and engineering machine is the best in the world, the best in class, like no other.
And speaking of best-in-class, I've been lucky enough to learn from one of the greatest innovators of the 21st century. Fred Luddy and I have been on a multiyear journey together, one built on love and mutual respect. At this week's board meeting, I was honored to take on the role of Chairman, with Fred remaining an active member of our board for the long term. Fred remains the soul and inspiration of ServiceNow, and I'm honored to call him our founder and my personal friend.
In conclusion, we again delivered on our promise in Q3. We said the company would continue its fast growth in any operating environment. We did. We said that cRPO growth would accelerate during H2. As our Q4 guidance reflects, it is. We said that we preserved the benchmark near the rule of 60 for the full year in constant currency. We are on track. ServiceNow has the revenue growth, predictability of growth and sustainable business model. While others are managing the past, our engineers are innovating for the future.
The fundamental question facing enterprises today is this, can modernization wait? With the robust demand environment we see, the answer is a compelling no, it cannot. The stated ambition of ServiceNow remains. We will be the defining enterprise software company of the 21st century. We are firmly committed to that journey. We are focused on value creation for our customers, our partners, our colleagues and our shareholders.
Our confidence in Q4 extends to 2023 and beyond. Sales capacity and pipeline coverage are higher today than at any point this year. We have best-in-class sales and marketing efficiency. We have a highly differentiated platform. We have a business model that will be managed by design for net new innovation, growth and profitabilities you can count on
. With this growth and margin profile, operating near the rule of 60, ServiceNow is a unique asset and a premier company. We are hiring with an absolute focus on people who can innovate through code and who could sell solutions and who can help customers realize success.
The bottom line is this. When our customers work, the world works better for everyone. That's why the world works with ServiceNow. If we didn't do what we do, it wouldn't get done. The hallmark for ServiceNow is net new innovation.
And with that in mind, I thank you so much, and I'll hand things over to Gina.