ServiceNow (NOW) risk factors, FY2025 10-K

Risks Related to Our Ability to Grow Our Business

1. 01Laws, regulations and customer expectations regarding the use, storage and movement of data may restrict our ability to continue to optimize our platform35% rewritten
2. 02A failure to innovate and adapt how we offer our products in response to rapidly evolving technological changes and in the midst of an intensely competitive market may harm our competitive position and business prospects34% rewritten
3. 03We may not successfully increase our penetration of international markets or manage risks associated with foreign markets
4. 04Incorporating AI technology into our offerings may result in operational, legal, regulatory, ethical and other challenges44% rewritten
5. 05We rely on our network of partners for an increasing portion of our revenues, and if these partners fail to perform, our business may be harmed
6. 06Doing business with the public sector and heavily-regulated entities subjects us to risks related to government procurement processes, regulations and contracting requirements
7. 07If we fail to comply with applicable anti-corruption and anti-bribery laws, export control laws, economic and trade sanctions laws, or other global trade laws, we could be subject to penalties and civil and/or criminal sanctions and our business could be materially adversely affected
8. 08Our customer deals are becoming more complex, which tend to involve longer, more expensive sales cycles, increased pricing pressure, and implementation and configuration challenges
9. 09As we acquire or invest in companies and technologies, we may not realize the expected business or financial benefits and the acquisitions and investments may divert our management’s attention and result in additional shareholder dilution or costs

Risks Related to the Operation of Our Business

1. 10Actual or perceived cybersecurity events experienced by us or our third-party service providers may create the perception that our platform is not secure, and we may lose customers or incur significant liabilities
2. 11We may lose key members of our management team or qualified employees or may not be able to attract and retain the employees we need
3. 12Delays in the release of, or actual or perceived defects in, our products may slow the adoption of our latest technologies, reduce our ability to efficiently provide services, decrease customer satisfaction and adversely impact future product sales
4. 13Disruptions or defects in our services could damage our customers’ businesses, subject us to substantial liability and harm our business42% rewritten
5. 14Delays in improving our information systems and processes could interfere with our ability to support our existing and growing base of customers and employees as we scale22% rewritten
6. 15We may not be able to protect or enforce our IP rights
7. 16Our use of open-source software could harm our ability to sell our products and services and subject us to possible litigation
8. 17Various factors, including our customers’ business, integration, migration, compliance and security requirements or errors by us, our partners or our customers, may cause implementations of our products to be delayed, inefficient or otherwise unsuccessful22% rewritten
9. 18Our failure or perceived failure to achieve our corporate sustainability goals or maintain corporate sustainability practices that meet evolving stakeholder expectations could adversely affect us57% rewritten
10. 19We may face natural disasters, including climate change, and other events beyond our control21% rewritten

Risks Related to the Financial Performance or Financial Position of Our Business

1. 20Because we generally recognize revenues from our subscription services over the subscription term, a decrease in new subscriptions or renewals may not be immediately reflected in our operating results
2. 21As our business grows, we expect our revenue growth rate to decline over the long term
3. 22Changes in our effective tax rate or disallowance of our tax positions may adversely affect our business58% rewritten
4. 23We may be adversely affected by our debt service obligations

Risks Related to General Economic and Political Conditions

1. 24Our industry and business may be harmed by global economic and political conditions
2. 25We may be harmed by foreign currency exchange rate fluctuations

Risks Related to Ownership of Our Common Stock

1. 26Our stock price is likely to continue to be volatile
2. 27Our stock price is likely to continue to be volatile and subject to wide fluctuations
3. 28Provisions in our governing documents or Delaware law might discourage, delay or prevent a change of control or changes in our management and, therefore, depress our stock price20% rewritten