What drove ServiceNow's operating profit surge in Q1 2024?

ServiceNow's operating profit surge in Q1 2024 can be attributed to Strong Revenue Growth and Disciplined Spending:

1. Revenue Growth: ServiceNow's operating revenue for Q1 2024 was $2.6 billion, with subscription revenues improving by 27.2% year-over-year to $2.37 billion. This growth was driven by strong demand for ServiceNow's core products, including ITSM, ITOM, and ITAM, which saw double-digit deals over $1 million. The company also reported 168 deals worth more than $1 million in net new annual contract value, up 33% year-over-year.
2. Operating Margin Expansion: ServiceNow's non-GAAP operating margin expanded by 300 basis points year-over-year to 27.7% in Q1 2024. This improvement was due to strong top-line growth and disciplined spending, as the company managed to decrease operating expenses as a percentage of revenues.

In summary, ServiceNow's operating profit surge in Q1 2024 was driven by strong revenue growth, particularly in subscription revenues, and improved operating margin due to disciplined spending.