ServiceNow (NOW) 10-Q 25 Oct 23 2023 Q3 Quarterly report Financial data

Cover

Cover shares in Millions	9 Months Ended
	Sep. 30, 2023 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-35580
Entity Registrant Name	SERVICENOW, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-2056195
Entity Address, Address Line One	2225 Lawson Lane
Entity Address, City or Town	Santa Clara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95054
City Area Code	408
Local Phone Number	501-8550
Title of 12(b) Security	Common stock, par value $0.001 per share
Trading Symbol	NOW
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Shares of common stock, outstanding (in shares)	205
Entity Central Index Key	0001373715
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 1,112	$ 1,470
Short-term investments	2,955	2,810
Accounts receivable, net	1,168	1,725
Current portion of deferred commissions	417	369
Prepaid expenses and other current assets	394	280
Total current assets	6,046	6,654
Deferred commissions, less current portion	807	742
Long-term investments	2,939	2,117
Property and equipment, net	1,199	1,053
Operating lease right-of-use assets	699	682
Intangible assets, net	242	232
Goodwill	1,204	824
Deferred tax assets	1,505	636
Other assets	450	359
Total assets	15,091	13,299
Current liabilities:
Accounts payable	69	274
Accrued expenses and other current liabilities	1,001	975
Current portion of deferred revenue	4,440	4,660
Current portion of operating lease liabilities	91	96
Total current liabilities	5,601	6,005
Deferred revenue, less current portion	46	70
Operating lease liabilities, less current portion	682	650
Long-term debt, net	1,487	1,486
Other long-term liabilities	93	56
Total liabilities	7,909	8,267
Commitments and contingencies
Stockholders’ equity:
Common stock	0	0
Treasury stock, at cost	(282)	0
Additional paid-in capital	5,847	4,796
Accumulated other comprehensive loss	(157)	(102)
Retained earnings	1,774	338
Total stockholders’ equity	7,182	5,032
Total liabilities and stockholders’ equity	$ 15,091	$ 13,299

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues:
Total revenues		$ 2,288	$ 1,831	$ 6,534	$ 5,305
Cost of revenues:
Total cost of revenues	[1]	496	400	1,405	1,158
Gross profit		1,792	1,431	5,129	4,147
Operating expenses:
Sales and marketing	[1]	799	697	2,454	2,092
Research and development	[1]	549	456	1,562	1,314
General and administrative	[1]	213	187	621	541
Total operating expenses	[1]	1,561	1,340	4,637	3,947
Income from operations		231	91	492	200
Interest income		82	26	216	43
Other expense, net		(14)	(15)	(47)	(27)
Income before income taxes		299	102	661	216
Provision for (benefit from) income taxes		57	22	(775)	41
Net income		$ 242	$ 80	$ 1,436	$ 175
Net income per share - basic (in USD per share)		$ 1.18	$ 0.39	$ 7.04	$ 0.87
Net income per share - diluted (in USD per share)		$ 1.17	$ 0.39	$ 7	$ 0.86
Weighted-average shares used to compute net income per share - basic (in shares)		204,464	202,045	203,961	201,026
Weighted-average shares used to compute net income per share - diluted (in shares)		206,277	203,121	205,194	203,350
Other comprehensive loss:
Foreign currency translation adjustments		$ (64)	$ (51)	$ (51)	$ (125)
Unrealized loss on investments, net of tax		(2)	(21)	(4)	(81)
Other comprehensive loss		(66)	(72)	(55)	(206)
Comprehensive income (loss)		176	8	1,381	(31)
Subscription
Revenues:
Total revenues		2,216	1,742	6,315	5,031
Cost of revenues:
Total cost of revenues	[1]	420	301	1,163	863
Professional services and other
Revenues:
Total revenues		72	89	219	274
Cost of revenues:
Total cost of revenues	[1]	$ 76	$ 99	$ 242	$ 295
[1]Includes stock-based compensation as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenues: Subscription $ 52 $ 41 $ 148 $ 116 Professional services and other 11 17 40 51 Operating expenses: Sales and marketing 132 119 378 337 Research and development 150 127 430 368 General and administrative 68 57 195 166

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Cost of revenues | Subscription
Share-based compensation expense	$ 52	$ 41	$ 148	$ 116
Cost of revenues | Professional services and other
Share-based compensation expense	11	17	40	51
Sales and marketing
Share-based compensation expense	132	119	378	337
Research and development
Share-based compensation expense	150	127	430	368
General and administrative
Share-based compensation expense	$ 68	$ 57	$ 195	$ 166

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Millions	Total	Cumulative Effect, Period Of Adoption, Adjustment	Common Stock	Treasury Stock	Additional Paid-in Capital	Additional Paid-in Capital Cumulative Effect, Period Of Adoption, Adjustment	Retained Earnings	Retained Earnings Cumulative Effect, Period Of Adoption, Adjustment	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2021			199,608
Beginning balance at Dec. 31, 2021	$ 3,695	$ (2)	$ 0		$ 3,665	$ (19)	$ (4)	$ 17	$ 34
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued under employee stock plans (in shares)	2,200		2,154
Common stock issued under employee stock plans	$ 177				177
Common stock repurchased	0
Taxes paid related to net share settlement of equity awards	(352)				(352)
Stock-based compensation	1,036				1,036
Settlement of 2022 warrants (in shares)			603
Settlement of 2022 Notes conversion feature	(233)				(233)
Benefit from exercise of 2022 Note Hedge	233				233
Other comprehensive loss, net of tax	(206)								(206)
Net income	175						175
Ending balance (in shares) at Sep. 30, 2022			202,365
Ending balance at Sep. 30, 2022	4,523		$ 0		4,507		188		(172)
Beginning balance (in shares) at Jun. 30, 2022			201,614
Beginning balance at Jun. 30, 2022	4,194		$ 0		4,186		108		(100)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued under employee stock plans (in shares)			751
Common stock issued under employee stock plans	71				71
Common stock repurchased	0
Taxes paid related to net share settlement of equity awards	(111)				(111)
Stock-based compensation	361				361
Other comprehensive loss, net of tax	(72)								(72)
Net income	80						80
Ending balance (in shares) at Sep. 30, 2022			202,365
Ending balance at Sep. 30, 2022	4,523		$ 0		4,507		188		(172)
Beginning balance (in shares) at Dec. 31, 2022			202,882
Beginning balance at Dec. 31, 2022	$ 5,032		$ 0	$ 0	4,796		338		(102)
Beginning balance, treasury (in shares) at Dec. 31, 2022				0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued under employee stock plans (in shares)	2,200		2,173
Common stock issued under employee stock plans	$ 193				193
Common stock repurchased (in shares)				(500)
Common stock repurchased	(282)			$ (282)
Taxes paid related to net share settlement of equity awards	(333)				(333)
Stock-based compensation	1,191				1,191
Settlement of 2022 Notes conversion feature	0
Benefit from exercise of 2022 Note Hedge	0
Other comprehensive loss, net of tax	(55)								(55)
Net income	1,436						1,436
Ending balance (in shares) at Sep. 30, 2023			205,055
Ending balance at Sep. 30, 2023	7,182		$ 0	$ (282)	5,847		1,774		(157)
Ending balance, treasury (in shares) at Sep. 30, 2023				(500)
Beginning balance (in shares) at Jun. 30, 2023			204,267
Beginning balance at Jun. 30, 2023	6,926		$ 0	$ 0	5,485		1,532		(91)
Beginning balance, treasury (in shares) at Jun. 30, 2023				0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued under employee stock plans (in shares)			788
Common stock issued under employee stock plans	$ 76				76
Common stock repurchased (in shares)	(500)			(500)
Common stock repurchased	$ (282)			$ (282)
Taxes paid related to net share settlement of equity awards	(127)				(127)
Stock-based compensation	413				413
Other comprehensive loss, net of tax	(66)								(66)
Net income	242						242
Ending balance (in shares) at Sep. 30, 2023			205,055
Ending balance at Sep. 30, 2023	$ 7,182		$ 0	$ (282)	$ 5,847		$ 1,774		$ (157)
Ending balance, treasury (in shares) at Sep. 30, 2023				(500)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income	$ 1,436	$ 175
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	408	315
Amortization of deferred commissions	333	261
Stock-based compensation	1,191	1,038
Deferred income taxes	(874)	(3)
Other	(13)	9
Changes in operating assets and liabilities, net of effect of business combinations:
Accounts receivable	552	445
Deferred commissions	(453)	(369)
Prepaid expenses and other assets	(183)	(73)
Accounts payable	(188)	116
Deferred revenue	(217)	(156)
Accrued expenses and other liabilities	(199)	(197)
Net cash provided by operating activities	1,793	1,561
Cash flows from investing activities:
Purchases of property and equipment	(433)	(406)
Business combinations, net of cash acquired	(282)	(57)
Purchases of investments	(3,805)	(2,811)
Purchases of non-marketable investments	(56)	(138)
Sales and maturities of investments	2,868	1,700
Other	(15)	3
Net cash used in investing activities	(1,723)	(1,709)
Cash flows from financing activities:
Repayments of convertible senior notes attributable to principal	0	(94)
Proceeds from employee stock plans	193	177
Repurchases of common stock	(282)	0
Taxes paid related to net share settlement of equity awards	(333)	(352)
Net cash used in financing activities	(422)	(269)
Foreign currency effect on cash, cash equivalents and restricted cash	(4)	(61)
Net change in cash, cash equivalents and restricted cash	(356)	(478)
Cash, cash equivalents and restricted cash at beginning of period	1,475	1,732
Cash, cash equivalents and restricted cash at end of period	1,119	1,254
Cash, cash equivalents and restricted cash at end of period:
Cash and cash equivalents	1,112	1,248
Restricted cash included in prepaid expenses and other current assets	7	6
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows	1,119	1,254
Supplemental disclosures of other cash flow information:
Interest paid	23	23
Income taxes paid, net of refunds	103	33
Non-cash investing and financing activities:
Settlement of 2022 Notes conversion feature	0	233
Benefit from exercise of 2022 Note Hedge	0	233
Property and equipment included in accounts payable, accrued expenses and other liabilities	$ 63	$ 34

Description of the Business

Description of the Business	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Business	Description of the BusinessServiceNow was founded on a simple premise: a better technology platform will help work flow better. We help global enterprises across industries, universities and governments to digitize their workflows. We organize our workflow applications along four primary areas: Technology, Customer and Industry, Employee and Creator. The products under each of our workflows help customers connect, automate and empower work across systems and silos to enable great outcomes for businesses and great experiences for people. The Now Platform integrates with our customers’ cloud platforms and systems of choice, allowing our customers to deliver workflows across their current and future preferred systems of record and collaboration platforms.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by United States (“U.S.”) generally accepted accounting principles (“GAAP”) for complete financial statements due to the permitted exclusion of certain disclosures for interim reporting. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary under GAAP for fair statement of results for the interim periods presented have been included. As a result of displaying amounts in millions, rounding differences may exist in the condensed consolidated financial statements and footnote tables. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for other interim periods or future years. The condensed consolidated balance sheet as of December 31, 2022 is derived from audited consolidated financial statements; however, it does not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on January 31, 2023. Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with GAAP, and include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Such management estimates and assumptions include, but are not limited to, standalone selling price for each distinct performance obligation included in customer contracts with multiple performance obligations, the period of benefit for deferred commissions, valuation of intangible assets, the useful life of property and equipment and identifiable intangible assets, stock-based compensation expense and income taxes. Actual results could differ from those estimates. Significant Accounting Policies There were no significant changes to our significant accounting policies disclosed in “Note 2 – Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on January 31, 2023. Concentration of Credit Risk and Significant Customers Credit risk arising from accounts receivable is mitigated to a certain extent due to our large number of customers and their dispersion across various industries and geographies. As of September 30, 2023, we had one customer, a U.S. federal channel partner and systems integrator, that represented 26% of our accounts receivable balance. Based on our periodic credit evaluations, there have been no historical collection concerns with this customer. As of December 31, 2022, there were no customers that represented more than 10% of our accounts receivable balance. There were no customers that individually exceeded 10% of our total revenues in any of the periods presented. For purposes of assessing concentration of credit risk and significant customers, a group of customers under common control or customers that are affiliates of each other are regarded as a single customer. Prior Period Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications did not result in a restatement of prior period condensed consolidated financial statements.

Investments

Investments	9 Months Ended
	Sep. 30, 2023
Debt Securities, Available-for-Sale [Abstract]
Investments	Investments Marketable Debt Securities The following is a summary of our available-for-sale debt securities recorded within short-term and long-term investments on the condensed consolidated balance sheets (in millions): September 30, 2023 Amortized Gross Gross Estimated Available-for-sale debt securities: Commercial paper $ 475 $ — $ (1) $ 474 Corporate notes and bonds 3,324 — (33) 3,291 Certificates of deposit 112 — — 112 U.S. government and agency securities 1,958 — (22) 1,936 Mortgage-backed and asset-backed securities 103 — (22) 81 Total available-for-sale debt securities $ 5,972 $ — $ (78) $ 5,894 December 31, 2022 Amortized Gross Gross Estimated Available-for-sale debt securities: Commercial paper $ 558 $ — $ (2) $ 556 Corporate notes and bonds 3,414 — (52) 3,362 Certificates of deposit 162 — — 162 U.S. government and agency securities 768 — (2) 766 Mortgage-backed and asset-backed securities 98 — (17) 81 Total available-for-sale debt securities $ 5,000 $ — $ (73) $ 4,927 As of September 30, 2023, the contractual maturities of our available-for-sale debt securities, excluding those securities classified within cash and cash equivalents on the condensed consolidated balance sheet and mortgage-backed and asset-backed securities that do not have a single maturity, did not exceed 36 months. The fair values of available-for-sale debt securities, by remaining contractual maturity, are as follows (in millions): September 30, 2023 Due within 1 year $ 2,955 Due in 1 year through 5 years 2,858 Instruments not due in single maturity 81 Total $ 5,894 As of September 30, 2023 and December 31, 2022, the fair value of available-for-sale debt securities in a continuous unrealized loss position totaled $5,289 million and $4,232 million, respectively. As of September 30, 2023, unrealized losses of $41 million from available-for-sale debt securities is from securities in a continuous unrealized loss position greater than 12 months. For all available-for-sale debt securities that were in unrealized loss positions, we have determined that it is more likely than not we will hold the securities until maturity or a recovery of the cost basis. Unrealized losses on available-for-sale debt securities were due primarily to changes in market interest rates, and credit-related impairment losses were not material as of September 30, 2023. Non-Marketable Equity Investments As of September 30, 2023 and December 31, 2022, the total amount of non-marketable equity investments in privately held companies included in other assets on our condensed consolidated balance sheets was $288 million and $252 million, respectively. These balances include a $100 million investment in the common and preferred shares of Celonis SE, a privately held company that develops and sells process mining software. Our non-marketable equity investments are accounted for using the measurement alternative, which measures the investments at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes resulting from the issuance of similar or identical securities in an orderly transaction by the same issuer. Determining whether an observed transaction is similar to a security within our portfolio requires judgment based on the rights and preferences of the securities. Recording upward and downward adjustments to the carrying value of our non-marketable equity investments as a result of observable price changes requires quantitative assessments of the fair value of our non-marketable equity investments using various valuation methodologies and involves the use of estimates. The adjustments made during the three and nine months ended September 30, 2023 and 2022 are immaterial. We classify these fair value measurements as Level 3 within the fair value hierarchy.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of September 30, 2023 (in millions): Level 1 Level 2 Total Cash equivalents: Money market funds $ 457 $ — $ 457 Commercial paper — 36 36 Corporate notes and bonds — 1 1 Deposits 291 — 291 U.S. government and agency securities — 64 64 Marketable securities: Commercial paper — 474 474 Corporate notes and bonds — 3,291 3,291 Certificates of deposit — 112 112 U.S. government and agency securities — 1,936 1,936 Mortgage-backed and asset-backed securities — 81 81 Total $ 748 $ 5,995 $ 6,743 The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of December 31, 2022 (in millions): Level 1 Level 2 Total Cash equivalents: Money market funds $ 738 $ — $ 738 Commercial paper — 36 36 Corporate notes and bonds — 10 10 Certificates of deposit — 2 2 Deposits 124 — 124 U.S. government and agency securities — 8 8 Marketable securities: Commercial paper — 556 556 Corporate notes and bonds — 3,362 3,362 Certificates of deposit — 162 162 U.S. government and agency securities — 766 766 Mortgage-backed and asset-backed securities — 81 81 Total $ 862 $ 4,983 $ 5,845 We determine the fair value of our security holdings based on pricing from our service providers and market prices from industry-standard independent data providers. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs), pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) or using unobservable inputs that are supported by little or no market activity (Level 3 inputs). Our non-marketable equity investments are not included in the table above and are discussed in Note 3. See Note 8 for the fair value measurement of our derivative contracts and Note 10 for the fair value measurement of our long-term debt, which are also not included in the table above. Our marketable equity investments are classified within Level 1 and are immaterial as of September 30, 2023 and December 31, 2022.

Business Combinations

Business Combinations	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Business Combinations	Business Combinations On July 17, 2023, we acquired all outstanding shares of G2K Group GmbH, an artificial intelligence powered platform, for $464 million in a cash transaction. The consideration is paid in two installments. The first installment was made at the close of the transaction in July 2023. The second installment will be paid in February 2024 and is recognized as accrued expenses and other current liabilities, which is a non-cash financing activity as of September 30, 2023. The acquisition is intended to enhance our Now Platform with the acquired smart Internet of Things (“IoT”) technology, enabling businesses to intelligently action digital and in-store data with enterprise-grade workflows. The purchase price was preliminarily allocated based on the estimated fair value of the developed technology intangible asset of $75 million (six-year estimated useful life), net tangible liabilities of $1 million, deferred tax liabilities of $23 million and goodwill of $413 million, which is not deductible for income tax purposes. Goodwill is primarily attributed to the value expected from synergies resulting from the business combination. The fair values assigned to tangible and intangible assets acquired, liabilities assumed and income taxes payable and deferred taxes are based on management’s estimates and assumptions. The provisional measurements of fair value for certain assets and liabilities, which encompass primarily deferred taxes and income taxes payable, may be subject to change as additional information is received. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. We have included the financial results of the business combination in the condensed consolidated financial statements from the date of acquisition, which was not material. During the nine months ended September 30, 2022, we completed an acquisition for total consideration of $57 million primarily to enhance our products with the acquired technology and engineering workforce. The acquisition was not material to our condensed consolidated financial statements.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill balance consists of the following (in millions): Carrying Amount Balance as of December 31, 2022 $ 824 Goodwill acquired 413 Foreign currency translation adjustments (33) Balance as of September 30, 2023 $ 1,204 `Intangible assets consist of the following (in millions): September 30, 2023 December 31, 2022 Developed technology $ 507 $ 434 Patents 72 72 Other 11 15 Intangible assets, gross 590 521 Less: accumulated amortization (348) (289) Intangible assets, net $ 242 $ 232 The weighted-average useful life of the acquired developed technology for the nine months ended September 30, 2023 and 2022 was approximately five years. Amortization expense for intangible assets for the three months ended September 30, 2023 and 2022 was $21 million and $20 million, respectively, and for the nine months ended September 30, 2023 and 2022 was $63 million and $60 million, respectively. The following table presents the estimated future amortization expense related to intangible assets held at September 30, 2023 (in millions): Years Ending December 31, Remainder of 2023 $ 22 2024 82 2025 62 2026 33 2027 19 Thereafter 24 Total future amortization expense $ 242

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment, net consists of the following (in millions): September 30, 2023 December 31, 2022 Computer equipment $ 1,902 $ 1,606 Computer software 94 82 Leasehold and other improvements 280 226 Furniture and fixtures 89 81 Construction in progress 14 53 Property and equipment, gross 2,379 2,048 Less: Accumulated depreciation (1,180) (995) Property and equipment, net $ 1,199 $ 1,053

Derivative Contracts

Derivative Contracts	9 Months Ended
	Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Contracts	Derivative Contracts As of September 30, 2023 and December 31, 2022, we had foreign currency forward contracts with total notional values of $1,592 million and $1,360 million, respectively, which are not designated as hedging instruments. Our foreign currency forward contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates. Outstanding foreign currency forward contracts are recorded at gross fair value as prepaid expenses and other current assets as well as accrued expenses and other current liabilities on the condensed consolidated balance sheets. The gross fair value of these foreign currency forward contracts was immaterial as of September 30, 2023 and December 31, 2022. The gains (losses) recognized for these foreign currency forward contracts were immaterial for each of the three and nine months ended September 30, 2023 and 2022.

Deferred Revenue and Performanc

Deferred Revenue and Performance Obligations	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Deferred Revenue and Performance Obligations	Deferred Revenue and Performance Obligations Revenues recognized during the three months ended September 30, 2023 and 2022 from amounts included in deferred revenue as of June 30, 2023 and 2022 were $2.0 billion and $1.6 billion, respectively. Revenues recognized during the nine months ended September 30, 2023 and 2022 from amounts included in deferred revenue as of December 31, 2022 and 2021 were $4.1 billion and $3.3 billion, respectively. Remaining Performance Obligations Transaction price allocated to remaining performance obligations (“RPO”) represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancellable amounts that will be invoiced and recognized as revenues in future periods. RPO excludes contracts that are billed in arrears, such as certain time and materials contracts, as we apply the “right to invoice” practical expedient under relevant accounting guidance. As of September 30, 2023, the total non-cancellable RPO under our contracts with customers was $14.4 billion and we expect to recognize revenues on approximately 52% of these RPO over the following 12 months. The majority of the non-current RPO will be recognized over the next 13 to 36 months.

Debt

Debt	9 Months Ended
	Sep. 30, 2023
Convertible Notes Payable [Abstract]
Debt	Debt For the periods ended September 30, 2023 and December 31, 2022, the carrying value of our outstanding debt was $1,487 million and $1,486 million, respectively, net of unamortized debt discount and issuance costs of $13 million and $14 million, respectively. We consider the fair value of the 2030 Notes at September 30, 2023 and December 31, 2022 to be a Level 2 measurement. The estimated fair value of the 2030 Notes based on the closing trading price per $100, was $1,152 million and $1,144 million at September 30, 2023 and December 31, 2022, respectively. 2030 Notes In August 2020, we issued 1.40% fixed rate ten-year notes with an aggregate principal amount of $1.5 billion due on September 1, 2030 (the “2030 Notes”). The 2030 Notes were issued at 99.63% of principal and we incurred $13 million for debt issuance costs. The effective interest rate for the 2030 Notes was 1.53% and included interest payable, amortization of debt issuance cost and amortization of debt discount, as applicable. Interest is payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2021, and the entire outstanding principal amount is due at maturity on September 1, 2030. The 2030 Notes are unsecured obligations and the indentures governing the 2030 Notes contain customary events of default and covenants that, among others and subject to exceptions, restrict our ability to incur or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified properties. 2022 Notes, Note Hedge and Warrants In May and June 2017, we issued an aggregate of $782.5 million of 0% convertible senior notes (the “2022 Notes”), which were converted prior to or settled on June 1, 2022, in accordance with their terms. Convertible Date Initial Conversion Price per Share Initial Conversion Rate per $1,000 Par Value Initial Number of Shares (in millions) 2022 Notes February 1, 2022 $ 134.75 7.42 shares 6 To minimize the impact of potential economic dilution upon conversion of the 2022 Notes, we entered into convertible note hedge transactions (the “2022 Note Hedge”) with certain investment banks, with respect to our common stock concurrently with the issuance of the 2022 Notes. The 2022 Note Hedge offset the dilution and cash payments in excess of the principal amount of the converted 2022 Notes and expired upon the maturity date of the 2022 Notes, which was on June 1, 2022. Purchase Initial Shares Shares as of September 30, 2023 (in millions) 2022 Note Hedge $ 128 6 — Separately, we entered into warrant transactions with certain investment banks, whereby we sold warrants to acquire 6 million shares of our common stock with aggregate proceeds of $54 million (the “2022 Warrants”). The 2022 Warrants were separate transactions and were not remeasured through earnings each reporting period. The 2022 Warrants were not part of the 2022 Notes or 2022 Note Hedge. During the quarter ended June 30, 2022, we entered into unwind agreements to settle the remaining portion of the 2022 Warrants by delivering an aggregate of 0.6 million shares of our common stock. Accordingly, the 2022 Warrants were no longer outstanding as of June 30, 2022.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The following table shows the components of accumulated other comprehensive loss, net of tax, in the stockholders’ equity section of our condensed consolidated balance sheets (in millions): September 30, 2023 December 31, 2022 Foreign currency translation adjustment $ (76) $ (25) Net unrealized loss on investments (81) (77) Accumulated other comprehensive loss $ (157) $ (102) Reclassification adjustments out of accumulated other comprehensive loss into net income were not material for all periods presented.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Common Stock We are authorized to issue a total of 600 million shares of common stock as of September 30, 2023. Holders of our common stock are not entitled to receive dividends unless declared by our board of directors. As of September 30, 2023, we had 204.6 million shares of common stock outstanding and had reserved shares of common stock for future issuance as follows (in thousands): September 30, 2023 Stock plans: Options outstanding 1,158 RSUs (1) 6,964 Shares of common stock available for future grants: Amended and Restated 2021 Equity Incentive Plan (2) 11,934 Amended and Restated 2012 Employee Stock Purchase Plan (2) 8,508 Total shares of common stock reserved for future issuance 28,564 (1) Represents the number of shares issuable upon settlement of outstanding restricted stock units (“RSUs”) and performance-based RSUs (“PRSUs”), as discussed in Note 13. (2) Refer to Note 13 for a description of these plans. We issued a total of 2.2 million shares for each of the nine months ended September 30, 2023 and 2022, from stock option exercises, vesting of RSUs, net of employee payroll taxes, and purchases from the employee stock purchase plan (“ESPP”). Treasury Stock In May 2023, our board of directors authorized a program to repurchase up to $1.5 billion of our common stock (the “Share Repurchase Program”). Under this new program, we may repurchase our common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions. The Share Repurchase Program does not have a fixed expiration date, may be suspended or discontinued at any time, and does not obligate us to acquire any amount of common stock. The timing, manner, price, and amount of any repurchases will be determined by us at our discretion and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations. During the three months ended September 30, 2023, the Company repurchased 0.5 million shares of its common stock for $282 million. All repurchases were made in open market transactions. Repurchases of common stock are recognized as treasury stock and held for future issuance. As of September 30, 2023, approximately $1.2 billion of the originally authorized amount under the Share Repurchase Program remained available for future repurchases.

Equity Awards

Equity Awards	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Equity Awards	Equity Awards We currently have three equity incentive plans: 2012 Equity Incentive Plan (the “2012 Plan”), amended and restated 2021 Equity Incentive Plan (the “Restated 2021 Plan”) and 2022 New-Hire Equity Incentive Plan (the “2022 Plan”). The 2012 Plan was terminated in connection with the approval of the 2021 Plan on June 7, 2021 but continues to govern the terms of outstanding equity awards that were granted prior to the termination of the 2012 Plan. As of June 7, 2021, we no longer grant equity awards pursuant to the 2012 Plan. The Restated 2021 Plan was approved by the shareholders on June 1, 2023 to increase shares available for future grants by approximately 10 million shares. Upon effectiveness of the Restated 2021 Plan, the 2022 Plan was terminated, and no additional awards under the 2022 Plan have been made since the effective date of the Restated 2021 Plan. Outstanding equity awards under the 2022 Plan continue to be subject to the terms and conditions of the 2022 Plan. The Restated 2021 Plan and the 2012 Plan provide for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, RSUs, performance-based stock awards and other forms of equity compensation (collectively, “equity awards”). The 2022 Plan permits the grant of any of the foregoing awards with the exception of incentive stock options. In addition, the 2022 Plan, the Restated 2021 Plan and the 2012 Plan provide for the grant of performance cash awards. Incentive stock options may be granted only to employees. All other equity awards may be granted to employees, including officers, as well as directors and consultants. Our Amended and Restated 2012 Employee Stock Purchase Plan (the “2012 ESPP”) authorizes the issuance of shares of common stock pursuant to purchase rights granted to our employees. The price at which common stock is purchased under the 2012 ESPP is equal to 85% of the fair market value of our common stock on the first or last day of the offering period, whichever is lower. Offering periods are six months long and begin on February 1 and August 1 of each year. The number of shares of common stock reserved for issuance will not be increased without shareholder approval. Stock Options A summary of stock option activity for the nine months ended September 30, 2023 was as follows: Number of Weighted- Weighted- Aggregate (in thousands) (in years) (in millions) Outstanding at December 31, 2022 1,237 $ 590.36 Exercised (24) $ 66.20 $ 11 Forfeited (55) $ 626.10 Outstanding at September 30, 2023 1,158 $ 599.26 7.7 $ 68 Vested and expected to vest as of September 30, 2023 940 $ 582.46 7.6 $ 67 Vested and exercisable as of September 30, 2023 149 $ 193.82 5.2 $ 54 Aggregate intrinsic value represents the difference between the estimated fair value of our common stock and the exercise price of outstanding, in-the-money options. The total fair value of stock options vested during the nine months ended September 30, 2023 was $5 million. No stock options were granted during the nine months ended September 30, 2023. As of September 30, 2023, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options was $30 million. The weighted-average remaining vesting period of unvested stock options at September 30, 2023 was approximately one year. RSUs A summary of RSU activity for the nine months ended September 30, 2023 was as follows: Number of Weighted-Average Grant-Date Fair Value (in thousands) Outstanding at December 31, 2022 5,737 $ 505.79 Granted 3,951 $ 472.32 Vested (2,338) $ 469.05 Forfeited (386) $ 507.13 Outstanding at September 30, 2023 6,964 $ 499.57 Expected to vest as of September 30, 2023 6,135 RSUs outstanding as of September 30, 2023 were comprised of 6.5 million RSUs with only service conditions and 0.5 million RSUs with both service and performance conditions, including certain RSUs with additional market conditions. The total intrinsic value of the RSUs vested was $1.2 billion for the nine months ended September 30, 2023. As of September 30, 2023, the aggregate intrinsic value of RSUs outstanding was $3.9 billion and RSUs expected to vest was $3.4 billion. PRSUs with service, performance and market vesting criteria are considered as eligible to vest when approved by the compensation committee of our board of directors in January of the year following the grant. The ultimate number of shares eligible to vest for PRSUs range from 0% to 200% of the target number of shares depending on achievement relative to the performance metrics and, for certain PRSUs, depend on our total shareholder return relative to that of the S&P 500 index over the applicable measurement period. The eligible shares subject to PRSUs granted during the nine months ended September 30, 2023 will vest in February of the following year and semi-annually for the remaining two years contingent on each holder’s continuous status as a service provider on the applicable vesting dates. The number of PRSUs granted included in the table above reflects the shares that could be eligible to vest at 100% of target for PRSUs and includes adjustments for over or under achievement for PRSUs granted in the prior year. We recognized $111 million and $91 million of stock-based compensation, net of actual and estimated forfeitures, associated with PRSUs on a graded vesting basis during the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested RSUs was $2.7 billion, and the weighted-average remaining vesting period was approximately three years.

Net Income Per Share

Net Income Per Share	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share Basic net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for the effects of dilutive shares of common stock, which are comprised of outstanding stock options, RSUs, ESPP obligations, the 2022 Notes and the 2022 Warrants. Stock awards with performance or market conditions are included in dilutive shares to the extent all conditions are met. The potentially dilutive shares of common stock are computed using the treasury stock method or the as-if converted method, as applicable. The effects of outstanding stock options, RSUs, ESPP obligations, 2022 Notes and 2022 Warrants are excluded from the computation of diluted net income per share in periods in which the effect would be antidilutive. The following tables present the calculation of basic and diluted net income per share attributable to common stockholders (in millions, except for number of shares reflected in thousands and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income $ 242 $ 80 $ 1,436 $ 175 Denominator: Weighted-average shares outstanding - basic 204,464 202,045 203,961 201,026 Weighted-average effect of potentially dilutive securities: Common stock options 122 120 118 146 RSUs 1,674 956 1,113 1,598 ESPP obligations 17 — 2 — 2022 Notes settlements — — — 375 Settlement of 2022 Warrants — — — 205 Weighted-average shares outstanding - diluted 206,277 203,121 205,194 203,350 Net income per share - basic $ 1.18 $ 0.39 $ 7.04 $ 0.87 Net income per share - diluted $ 1.17 $ 0.39 $ 7.00 $ 0.86 Common stock options, RSUs and ESPP obligations excluded from diluted net income per share because their effect would have been anti-dilutive 3,068 5,255 3,647 4,836

Provision for (Benefit from) In

Provision for (Benefit from) Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Provision for (Benefit from) Income Taxes	Provision for (Benefit from) Income Taxes We compute our provision for income taxes by applying the estimated annual effective tax rate to year-to-date income from recurring operations and adjust the provision for discrete tax items recorded in the period. The income tax provision was $57 million for the three months ended September 30, 2023, and our income tax benefit was $775 million for the nine months ended September 30, 2023. The income tax provision was primarily attributable to the mix of earnings and losses in countries with differing statutory tax rates, tax deductible research and development costs and the valuation allowance release through the effective tax rate. The income tax benefit was primarily attributable to the release of the valuation allowance of certain U.S. federal and state deferred tax assets. We regularly assess the need for a valuation allowance against our deferred tax assets. In making that assessment, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. As of June 30, 2023, we achieved cumulative U.S. income during the prior twelve quarters when considering pre-tax income adjusted for permanent differences and other comprehensive losses. Based on all available positive and negative evidence, having demonstrated sustained profitability which is objective and verifiable, and taking into account anticipated future earnings, we concluded it is more likely than not that our U.S. federal and state deferred tax assets will be realizable, with the exception of California. We continue to maintain a valuation allowance against our California deferred tax assets due to the uncertainty regarding realizability of these deferred tax assets as they have not met the “more likely than not” realization criteria, particularly as we expect research and development tax credit generation to exceed our ability to use the credits in future years. When a change in valuation allowance is recognized during an interim period, the change in valuation allowance resulting from current year income is included in the annual effective tax rate and the release of valuation allowance supported by projections of future taxable income is recorded as a discrete tax benefit in the interim period. Of the $1.2 billion valuation allowance as of December 31, 2022, we released $843 million as a discrete tax benefit and $142 million as part of the effective tax rate during the nine months ended September 30, 2023. $65 million of the valuation allowance will be released during the fourth quarter of 2023, and we will continue to maintain a valuation allowance of $177 million against our California deferred tax assets. We will continue to monitor the need for a valuation allowance against our deferred tax assets on a quarterly basis. Our income tax provision was $22 million and $41 million for the three and nine months ended September 30, 2022, respectively. The income tax provision was primarily attributable to the mix of earnings and losses in countries with differing statutory tax rates and the valuation allowance in the United States. We are subject to taxation in the United States and foreign jurisdictions. As of September 30, 2023, our tax years 2004 to 2022 remain subject to examination in most jurisdictions.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Operating Leases For some of our offices and data centers, we have entered into non-cancellable operating lease agreements with various expiration dates through 2035. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into our determination of lease payments. Total operating lease costs were $33 million and $96 million, excluding short-term lease costs, variable lease costs and sublease income, each of which were immaterial, for the three and nine months ended September 30, 2023, respectively. Total operating lease costs were $28 million and $84 million, excluding short-term lease costs, variable lease costs and sublease income, each of which were immaterial, for the three and nine months ended September 30, 2022, respectively. For the nine months ended September 30, 2023 and 2022, total cash paid for amounts included in the measurement of operating lease liabilities was $61 million and $56 million, respectively. Operating lease liabilities arising from obtaining operating right-of-use assets totaled $93 million and $73 million for the nine months ended September 30, 2023 and 2022, respectively, of which the increase is largely related to additional office facilities located in Dublin, Ireland in line with the original commitment. As of September 30, 2023, the weighted-average remaining lease term is approximately nine years, and the weighted-average discount rate is 4%. Maturities of operating lease liabilities as of September 30, 2023 are presented in the table below (in millions): Remainder of 2023 $ 28 2024 107 2025 118 2026 96 2027 80 Thereafter 490 Total operating lease payments 919 Less: imputed interest (146) Present value of operating lease liabilities $ 773 As of September 30, 2023, we have no operating leases that have not yet commenced. Other Commitments Other contractual commitments consist of data center and IT operations and sales and marketing activities related to our daily business operations. There were no material contractual obligations that were entered into during the nine months ended September 30, 2023 that were outside the ordinary course of business. During the three months ended September 30, 2022, we entered into a non-cancellable, $500 million agreement with Microsoft to purchase cloud services over five years, as we accelerate Azure adoption for mutual customers. In addition to the amounts above, the repayment of our 2030 Notes with an aggregate principal amount of $1.5 billion is due on September 1, 2030. Refer to Note 10 for further information regarding our 2030 Notes. Further, $45 million of unrecognized tax benefits have been recorded as liabilities as of September 30, 2023. Legal Proceedings From time to time, we are party to litigation and other legal proceedings in the ordinary course of business. While the results of any litigation or other legal proceedings are uncertain, management does not believe the ultimate resolution of any pending legal matters is likely to have a material adverse effect on our financial position, results of operations or cash flows, except for those matters for which we have recorded a loss contingency. We accrue for loss contingencies when it is both probable that we will incur the loss and when we can reasonably estimate the amount of the loss or range of loss. Generally, our subscription agreements require us to defend our customers for third-party intellectual property infringement and other claims. Any adverse determination related to intellectual property claims or other litigation could prevent us from offering our services and adversely affect our financial condition and results of operations. Indemnification Provisions Our agreements include provisions indemnifying customers against intellectual property and other third-party claims. In addition, we have entered into indemnification agreements with our directors, executive officers and certain other officers that will require us, among other things, to indemnify them against certain liabilities that may arise as a result of their affiliation with us. We have not incurred any costs as a result of such indemnification obligations and have not recorded any liabilities related to such obligations in the condensed consolidated financial statements.

Information about Geographic Ar

Information about Geographic Areas and Products	9 Months Ended
	Sep. 30, 2023
Segments, Geographical Areas [Abstract]
Information about Geographic Areas and Products	Information about Geographic Areas and Products Revenues by geographic area, based on the location of our users, were as follows for the periods presented (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 North America (1) $ 1,452 $ 1,209 $ 4,165 $ 3,464 EMEA (2) 585 432 1,664 1,299 Asia Pacific and other 251 190 705 542 Total revenues $ 2,288 $ 1,831 $ 6,534 $ 5,305 Property and equipment, net by geographic area were as follows (in millions): September 30, 2023 December 31, 2022 North America (3) $ 786 $ 664 EMEA (2) 257 221 Asia Pacific and other 156 168 Total property and equipment, net $ 1,199 $ 1,053 (1) Revenues attributed to the United States were 94% of North America revenues for each of the three and nine months ended September 30, 2023 and 2022. (2) Europe, the Middle East and Africa (“EMEA”). (3) Property and equipment, net attributed to the United States was 83% and 85% of property and equipment, net attributable to North America as of September 30, 2023 and December 31, 2022, respectively. Subscription revenues consist of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Digital workflow products $ 1,961 $ 1,534 $ 5,587 $ 4,437 ITOM products 255 208 728 594 Total subscription revenues $ 2,216 $ 1,742 $ 6,315 $ 5,031

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net income	$ 242	$ 80	$ 1,436	$ 175

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	9 Months Ended
	Sep. 30, 2023 shares	Sep. 30, 2023 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Gina Mastantuono [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		Gina Mastantuono, our Chief Financial Officer, adopted a trading plan on July 28, 2023. The plan, which expires May 24, 2024, provides for the sale of (i) 317 shares of our common stock and (ii) 100% of the (net) shares resulting from the vesting of 8,019 additional (gross) shares of our common stock during the plan period (net shares are net of tax withholding).
Name	Gina Mastantuono
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	July 28, 2023
Arrangement Duration	301 days
William R. McDermott [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		William R. McDermott, our Chief Executive Officer, adopted a trading plan on August 31, 2023. The plan, which expires February 18, 2025, provides for the sale of (i) 30,489 shares of our common stock and (ii) 100% of the (net) shares resulting from the vesting of 9,986 additional (gross) shares of our common stock during the plan period (net shares are net of tax withholding).
Name	William R. McDermott
Title	Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 31, 2023
Arrangement Duration	537 days
Paul E. Chamberlain [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		Paul E. Chamberlain, a member of our board of directors, adopted a trading plan on August 21, 2023. The plan, which expires September 3, 2024, provides for the sale of 540 shares of our common stock.
Name	Paul E. Chamberlain
Title	board of directors,
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 21, 2023
Arrangement Duration	379 days
Aggregate Available	540	540
Gina Mastantuono Rule Trading Arrangement, Common Stock [Member] | Gina Mastantuono [Member]
Trading Arrangements, by Individual
Aggregate Available	317	317
Gina Mastantuono Rule Trading Arrangement, 100% Vesting Of Additional Common Stock [Member] | Gina Mastantuono [Member]
Trading Arrangements, by Individual
Aggregate Available	8,019	8,019
William R. McDermott Rule Trading Arrangement, Common Stock [Member] | William R. McDermott [Member]
Trading Arrangements, by Individual
Aggregate Available	30,489	30,489
William R. McDermott Rule Trading Arrangement, 100% Vesting Of Additional Common Stock [Member] | William R. McDermott [Member]
Trading Arrangements, by Individual
Aggregate Available	9,986	9,986

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by United States (“U.S.”) generally accepted accounting principles (“GAAP”) for complete financial statements due to the permitted exclusion of certain disclosures for interim reporting. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary under GAAP for fair statement of results for the interim periods presented have been included. As a result of displaying amounts in millions, rounding differences may exist in the condensed consolidated financial statements and footnote tables. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for other interim periods or future years. The condensed consolidated balance sheet as of December 31, 2022 is derived from audited consolidated financial statements; however, it does not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on January 31, 2023.
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with GAAP, and include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation.
Use of Estimates	Use of EstimatesThe preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Such management estimates and assumptions include, but are not limited to, standalone selling price for each distinct performance obligation included in customer contracts with multiple performance obligations, the period of benefit for deferred commissions, valuation of intangible assets, the useful life of property and equipment and identifiable intangible assets, stock-based compensation expense and income taxes. Actual results could differ from those estimates.
Concentration of Credit Risk and Significant Customers	Concentration of Credit Risk and Significant Customers Credit risk arising from accounts receivable is mitigated to a certain extent due to our large number of customers and their dispersion across various industries and geographies. As of September 30, 2023, we had one customer, a U.S. federal channel partner and systems integrator, that represented 26% of our accounts receivable balance. Based on our periodic credit evaluations, there have been no historical collection concerns with this customer. As of December 31, 2022, there were no customers that represented more than 10% of our accounts receivable balance. There were no customers that individually exceeded 10% of our total revenues in any of the periods presented. For purposes of assessing concentration of credit risk and significant customers, a group of customers under common control or customers that are affiliates of each other are regarded as a single customer.
Prior Period Reclassifications	Prior Period ReclassificationsCertain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications did not result in a restatement of prior period condensed consolidated financial statements
Fair Value Measurements	We determine the fair value of our security holdings based on pricing from our service providers and market prices from industry-standard independent data providers. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs), pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) or using unobservable inputs that are supported by little or no market activity (Level 3 inputs).
Legal Proceedings	Legal Proceedings From time to time, we are party to litigation and other legal proceedings in the ordinary course of business. While the results of any litigation or other legal proceedings are uncertain, management does not believe the ultimate resolution of any pending legal matters is likely to have a material adverse effect on our financial position, results of operations or cash flows, except for those matters for which we have recorded a loss contingency. We accrue for loss contingencies when it is both probable that we will incur the loss and when we can reasonably estimate the amount of the loss or range of loss. Generally, our subscription agreements require us to defend our customers for third-party intellectual property infringement and other claims. Any adverse determination related to intellectual property claims or other litigation could prevent us from offering our services and adversely affect our financial condition and results of operations. Indemnification Provisions Our agreements include provisions indemnifying customers against intellectual property and other third-party claims. In addition, we have entered into indemnification agreements with our directors, executive officers and certain other officers that will require us, among other things, to indemnify them against certain liabilities that may arise as a result of their affiliation with us. We have not incurred any costs as a result of such indemnification obligations and have not recorded any liabilities related to such obligations in the condensed consolidated financial statements.

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2023
Debt Securities, Available-for-Sale [Abstract]
Schedule of Marketable Debt Securities	The following is a summary of our available-for-sale debt securities recorded within short-term and long-term investments on the condensed consolidated balance sheets (in millions): September 30, 2023 Amortized Gross Gross Estimated Available-for-sale debt securities: Commercial paper $ 475 $ — $ (1) $ 474 Corporate notes and bonds 3,324 — (33) 3,291 Certificates of deposit 112 — — 112 U.S. government and agency securities 1,958 — (22) 1,936 Mortgage-backed and asset-backed securities 103 — (22) 81 Total available-for-sale debt securities $ 5,972 $ — $ (78) $ 5,894 December 31, 2022 Amortized Gross Gross Estimated Available-for-sale debt securities: Commercial paper $ 558 $ — $ (2) $ 556 Corporate notes and bonds 3,414 — (52) 3,362 Certificates of deposit 162 — — 162 U.S. government and agency securities 768 — (2) 766 Mortgage-backed and asset-backed securities 98 — (17) 81 Total available-for-sale debt securities $ 5,000 $ — $ (73) $ 4,927
Schedule of Investments Classified by Contractual Maturity Date	The fair values of available-for-sale debt securities, by remaining contractual maturity, are as follows (in millions): September 30, 2023 Due within 1 year $ 2,955 Due in 1 year through 5 years 2,858 Instruments not due in single maturity 81 Total $ 5,894

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of Assets Measured at Fair Value on Recurring Basis	The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of September 30, 2023 (in millions): Level 1 Level 2 Total Cash equivalents: Money market funds $ 457 $ — $ 457 Commercial paper — 36 36 Corporate notes and bonds — 1 1 Deposits 291 — 291 U.S. government and agency securities — 64 64 Marketable securities: Commercial paper — 474 474 Corporate notes and bonds — 3,291 3,291 Certificates of deposit — 112 112 U.S. government and agency securities — 1,936 1,936 Mortgage-backed and asset-backed securities — 81 81 Total $ 748 $ 5,995 $ 6,743 The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of December 31, 2022 (in millions): Level 1 Level 2 Total Cash equivalents: Money market funds $ 738 $ — $ 738 Commercial paper — 36 36 Corporate notes and bonds — 10 10 Certificates of deposit — 2 2 Deposits 124 — 124 U.S. government and agency securities — 8 8 Marketable securities: Commercial paper — 556 556 Corporate notes and bonds — 3,362 3,362 Certificates of deposit — 162 162 U.S. government and agency securities — 766 766 Mortgage-backed and asset-backed securities — 81 81 Total $ 862 $ 4,983 $ 5,845

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	Goodwill balance consists of the following (in millions): Carrying Amount Balance as of December 31, 2022 $ 824 Goodwill acquired 413 Foreign currency translation adjustments (33) Balance as of September 30, 2023 $ 1,204
Schedule of Intangible Assets	Intangible assets consist of the following (in millions): September 30, 2023 December 31, 2022 Developed technology $ 507 $ 434 Patents 72 72 Other 11 15 Intangible assets, gross 590 521 Less: accumulated amortization (348) (289) Intangible assets, net $ 242 $ 232
Schedule of Estimated Future Amortization Expense Related to Intangible Assets	The following table presents the estimated future amortization expense related to intangible assets held at September 30, 2023 (in millions): Years Ending December 31, Remainder of 2023 $ 22 2024 82 2025 62 2026 33 2027 19 Thereafter 24 Total future amortization expense $ 242

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment, Net	Property and equipment, net consists of the following (in millions): September 30, 2023 December 31, 2022 Computer equipment $ 1,902 $ 1,606 Computer software 94 82 Leasehold and other improvements 280 226 Furniture and fixtures 89 81 Construction in progress 14 53 Property and equipment, gross 2,379 2,048 Less: Accumulated depreciation (1,180) (995) Property and equipment, net $ 1,199 $ 1,053

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2023
Convertible Notes Payable [Abstract]
Summary of Convertible Senior Notes	Convertible Date Initial Conversion Price per Share Initial Conversion Rate per $1,000 Par Value Initial Number of Shares (in millions) 2022 Notes February 1, 2022 $ 134.75 7.42 shares 6
Schedule of Note Hedges	Purchase Initial Shares Shares as of September 30, 2023 (in millions) 2022 Note Hedge $ 128 6 —

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income, Net of Tax	The following table shows the components of accumulated other comprehensive loss, net of tax, in the stockholders’ equity section of our condensed consolidated balance sheets (in millions): September 30, 2023 December 31, 2022 Foreign currency translation adjustment $ (76) $ (25) Net unrealized loss on investments (81) (77) Accumulated other comprehensive loss $ (157) $ (102)

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Schedule of Common Stock Outstanding and Reserved Shares of Common Stock for Future Issuance	As of September 30, 2023, we had 204.6 million shares of common stock outstanding and had reserved shares of common stock for future issuance as follows (in thousands): September 30, 2023 Stock plans: Options outstanding 1,158 RSUs (1) 6,964 Shares of common stock available for future grants: Amended and Restated 2021 Equity Incentive Plan (2) 11,934 Amended and Restated 2012 Employee Stock Purchase Plan (2) 8,508 Total shares of common stock reserved for future issuance 28,564 (1) Represents the number of shares issuable upon settlement of outstanding restricted stock units (“RSUs”) and performance-based RSUs (“PRSUs”), as discussed in Note 13. (2) Refer to Note 13 for a description of these plans.

Equity Awards (Tables)

Equity Awards (Tables)	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Option Activity	A summary of stock option activity for the nine months ended September 30, 2023 was as follows: Number of Weighted- Weighted- Aggregate (in thousands) (in years) (in millions) Outstanding at December 31, 2022 1,237 $ 590.36 Exercised (24) $ 66.20 $ 11 Forfeited (55) $ 626.10 Outstanding at September 30, 2023 1,158 $ 599.26 7.7 $ 68 Vested and expected to vest as of September 30, 2023 940 $ 582.46 7.6 $ 67 Vested and exercisable as of September 30, 2023 149 $ 193.82 5.2 $ 54
Schedule of Restricted Stock Unit Activity	A summary of RSU activity for the nine months ended September 30, 2023 was as follows: Number of Weighted-Average Grant-Date Fair Value (in thousands) Outstanding at December 31, 2022 5,737 $ 505.79 Granted 3,951 $ 472.32 Vested (2,338) $ 469.05 Forfeited (386) $ 507.13 Outstanding at September 30, 2023 6,964 $ 499.57 Expected to vest as of September 30, 2023 6,135

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Income Per Share	The following tables present the calculation of basic and diluted net income per share attributable to common stockholders (in millions, except for number of shares reflected in thousands and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income $ 242 $ 80 $ 1,436 $ 175 Denominator: Weighted-average shares outstanding - basic 204,464 202,045 203,961 201,026 Weighted-average effect of potentially dilutive securities: Common stock options 122 120 118 146 RSUs 1,674 956 1,113 1,598 ESPP obligations 17 — 2 — 2022 Notes settlements — — — 375 Settlement of 2022 Warrants — — — 205 Weighted-average shares outstanding - diluted 206,277 203,121 205,194 203,350 Net income per share - basic $ 1.18 $ 0.39 $ 7.04 $ 0.87 Net income per share - diluted $ 1.17 $ 0.39 $ 7.00 $ 0.86 Common stock options, RSUs and ESPP obligations excluded from diluted net income per share because their effect would have been anti-dilutive 3,068 5,255 3,647 4,836

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of Maturities of Operating Lease Liabilities	Maturities of operating lease liabilities as of September 30, 2023 are presented in the table below (in millions): Remainder of 2023 $ 28 2024 107 2025 118 2026 96 2027 80 Thereafter 490 Total operating lease payments 919 Less: imputed interest (146) Present value of operating lease liabilities $ 773

Information about Geographic _2

Information about Geographic Areas and Products (Tables)	9 Months Ended
	Sep. 30, 2023
Segments, Geographical Areas [Abstract]
Revenues by Geographic Area, Based on Billing Location of Customer	Revenues by geographic area, based on the location of our users, were as follows for the periods presented (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 North America (1) $ 1,452 $ 1,209 $ 4,165 $ 3,464 EMEA (2) 585 432 1,664 1,299 Asia Pacific and other 251 190 705 542 Total revenues $ 2,288 $ 1,831 $ 6,534 $ 5,305
Schedule of Long Lived Assets by Geographic Area	Property and equipment, net by geographic area were as follows (in millions): September 30, 2023 December 31, 2022 North America (3) $ 786 $ 664 EMEA (2) 257 221 Asia Pacific and other 156 168 Total property and equipment, net $ 1,199 $ 1,053 (1) Revenues attributed to the United States were 94% of North America revenues for each of the three and nine months ended September 30, 2023 and 2022. (2) Europe, the Middle East and Africa (“EMEA”). (3) Property and equipment, net attributed to the United States was 83% and 85% of property and equipment, net attributable to North America as of September 30, 2023 and December 31, 2022, respectively.
Schedule of Subscription Revenue	Subscription revenues consist of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Digital workflow products $ 1,961 $ 1,534 $ 5,587 $ 4,437 ITOM products 255 208 728 594 Total subscription revenues $ 2,216 $ 1,742 $ 6,315 $ 5,031

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2023
Customer Concentration Risk | Accounts Receivable | One Customer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Concentration risk	26%

Investments - Summary of Invest

Investments - Summary of Investments (Detail) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 5,972	$ 5,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(78)	(73)
Estimated Fair Value	5,894	4,927
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	475	558
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(1)	(2)
Estimated Fair Value	474	556
Corporate notes and bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3,324	3,414
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(33)	(52)
Estimated Fair Value	3,291	3,362
Certificates of deposit
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	112	162
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	112	162
U.S. government and agency securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,958	768
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(22)	(2)
Estimated Fair Value	1,936	766
Mortgage-backed and asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	103	98
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(22)	(17)
Estimated Fair Value	$ 81	$ 81

Investments - Narrative (Detail

Investments - Narrative (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Contractual maturities	36 months
Continuous unrealized loss position, fair value	$ 5,289	$ 4,232
Continuous unrealized loss position, 12 months or greater, fair value	41
Non-marketable equity investment	288	252
Celonis SE
Debt Securities, Available-for-sale [Line Items]
Non-marketable equity investment	$ 100	$ 100

Investments - Maturities of Ava

Investments - Maturities of Available-for-Sale Investments (Detail) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Abstract]
Due within 1 year	$ 2,955
Due in 1 year through 5 years	2,858
Instruments not due in single maturity	81
Total	$ 5,894	$ 4,927

Fair Value Measurements (Detail

Fair Value Measurements (Detail) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 6,743	$ 5,845
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	748	862
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	5,995	4,983
Cash equivalents: | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	457	738
Cash equivalents: | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	36	36
Cash equivalents: | Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	1	10
Cash equivalents: | Deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	291	124
Cash equivalents: | U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	64	8
Cash equivalents: | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:		2
Cash equivalents: | Level 1 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	457	738
Cash equivalents: | Level 1 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Cash equivalents: | Level 1 | Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Cash equivalents: | Level 1 | Deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	291	124
Cash equivalents: | Level 1 | U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Cash equivalents: | Level 1 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:		0
Cash equivalents: | Level 2 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Cash equivalents: | Level 2 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	36	36
Cash equivalents: | Level 2 | Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	1	10
Cash equivalents: | Level 2 | Deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Cash equivalents: | Level 2 | U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	64	8
Cash equivalents: | Level 2 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:		2
Marketable securities: | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	474	556
Marketable securities: | Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	3,291	3,362
Marketable securities: | U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	1,936	81
Marketable securities: | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	112	162
Marketable securities: | Mortgage-backed and asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	81	766
Marketable securities: | Level 1 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	0	0
Marketable securities: | Level 1 | Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	0	0
Marketable securities: | Level 1 | U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	0	0
Marketable securities: | Level 1 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	0	0
Marketable securities: | Level 1 | Mortgage-backed and asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	0	0
Marketable securities: | Level 2 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	474	556
Marketable securities: | Level 2 | Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	3,291	3,362
Marketable securities: | Level 2 | U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	1,936	81
Marketable securities: | Level 2 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	112	162
Marketable securities: | Level 2 | Mortgage-backed and asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	$ 81	$ 766

Business Combinations (Details)

Business Combinations (Details) $ in Millions		9 Months Ended
	Jul. 17, 2023 USD ($) Installment	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Business Acquisition [Line Items]
Goodwill		$ 1,204		$ 824
Developed technology
Business Acquisition [Line Items]
Weighted average useful life		5 years	5 years
G2K Group, GmbH
Business Acquisition [Line Items]
Cash payment to acquire businesses	$ 464
Number of installments | Installment	2
Net tangible liabilities	$ 1
Deferred tax liabilities	23
Goodwill	413
G2K Group, GmbH | Developed technology
Business Acquisition [Line Items]
Intangible asset acquired	$ 75
Weighted average useful life	6 years
Hitch Works, Inc | Developed technology
Business Acquisition [Line Items]
Cash payment to acquire businesses			$ 57

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning of period	$ 824
Goodwill acquired	413
Foreign currency translation adjustments	(33)
Goodwill, end of period	$ 1,204

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 590	$ 521
Less: accumulated amortization	(348)	(289)
Intangible assets, net	242	232
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	507	434
Patents
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	72	72
Other
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 11	$ 15

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 21	$ 20	$ 63	$ 60
Developed technology
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life			5 years	5 years

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Schedule of Estimated Future Amortization of Intangible Assets (Details) $ in Millions	Sep. 30, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2023	$ 22
2024	82
2025	62
2026	33
2027	19
Thereafter	24
Total future amortization expense	$ 242

Property and Equipment (Detail)

Property and Equipment (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,379		$ 2,379		$ 2,048
Less: Accumulated depreciation	(1,180)		(1,180)		(995)
Property and equipment, net	1,199		1,199		1,053
Depreciation	98	$ 66	267	$ 185
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,902		1,902		1,606
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	94		94		82
Leasehold and other improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	280		280		226
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	89		89		81
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 14		$ 14		$ 53

Property and Equipment - Narrat

Property and Equipment - Narrative - (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 98	$ 66	$ 267	$ 185

Derivative Contracts (Details)

Derivative Contracts (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Foreign currency derivative contracts | Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative, notional amount	$ 1,592	$ 1,360

Deferred Revenue and Performa_2

Deferred Revenue and Performance Obligations - Revenues Recognized from Deferred Revenues (Details) - USD ($) $ in Billions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Deferred revenue recognized	$ 2	$ 1.6	$ 4.1	$ 3.3

Deferred Revenue and Performa_3

Deferred Revenue and Performance Obligations - Transaction Price Allocated to the Remaining Performance Obligations (Details) $ in Billions	Sep. 30, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining non-cancelable performance obligations	$ 14.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied (percent)	52%
Performance obligations period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied (percent)	48%
Performance obligations period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations period	13 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations period	36 months

Debt - Narrative (Details)

Debt - Narrative (Details) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Aug. 31, 2020 USD ($)	Jun. 30, 2022 shares	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2022 shares	Dec. 31, 2022 USD ($) $ / shares	Jun. 30, 2017 USD ($)
Debt Instrument [Line Items]
Estimated fair value of the note based on the closing trading price (in USD per share) | $ / shares			$ 100		$ 100
Shares (in shares) | shares		0
2022 convertible senior notes
Debt Instrument [Line Items]
Initial shares (in shares) | shares			6,000,000
Proceeds			$ 54
Common Stock
Debt Instrument [Line Items]
Settlement of 2022 warrants (in shares) | shares		600,000		603,000
2030 Notes
Debt Instrument [Line Items]
Long-term debt			1,487		$ 1,486
Unamortized debt discount and issuance costs, long-term			13		14
Contractual interest rate, notes	1.40%
Debt term	10 years
Face amount of debt	$ 1,500		$ 1,500
Percentage of principle issued	0.9963
Payments of debt issuance costs	$ 13
Effective interest rate			1.53%
2030 Notes | Level 2
Debt Instrument [Line Items]
Convertible debt, fair value disclosures			$ 1,152		$ 1,144
2022 Notes
Debt Instrument [Line Items]
Contractual interest rate, notes						0%
Face amount of debt						$ 782.5

Debt - Schedule of Conversion (

Debt - Schedule of Conversion (Details) - 2022 Notes shares in Millions	2 Months Ended
	Jun. 30, 2017 shares $ / shares
Debt Instrument [Line Items]
Initial conversion price per share (in USD per share) | $ / shares	$ 134.75
Initial conversion rate	0.00742
Initial number of shares (in shares) | shares	6

Debt - Schedule of Note Hedges

Debt - Schedule of Note Hedges (Details) - 2022 Note Hedge shares in Millions, $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($) shares
Derivative [Line Items]
Purchase | $	$ 128
Initial shares (in shares)	6
Shares (in shares)	0

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	$ 7,182	$ 6,926	$ 5,032	$ 4,523	$ 4,194	$ 3,695
Foreign currency translation adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	(76)		(25)
Net unrealized loss on investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	(81)		(77)
Accumulated other comprehensive loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	$ (157)	$ (91)	$ (102)	$ (172)	$ (100)	$ 34

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Detail) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	May 31, 2023
Equity [Abstract]
Shares of common stock, authorized (in shares)	600		600
Common stock, outstanding (in shares)	204.6		204.6
Common stock issued under employee stock plans (in shares)			2.2	2.2
Stock repurchase program, authorized amount					$ 1,500
Common stock repurchased (in shares)	0.5
Common stock repurchased	$ 282	$ 0	$ 282	$ 0
Stock repurchase program, remaining authorized amount	$ 1,200		$ 1,200

Stockholders' Equity - Outstand

Stockholders' Equity - Outstanding and Reserved Shares of Common Stock for Future Issuance (Detail) - shares shares in Thousands	Sep. 30, 2023	Dec. 31, 2022
Stock plans:
Options outstanding (in shares)	1,158	1,237
Total shares of common stock reserved for future issuance (in shares)	28,564
Amended and Restated 2021 Equity Incentive Plan
Stock plans:
Total shares of common stock reserved for future issuance (in shares)	11,934
Amended and Restated 2012 Employee Stock Purchase Plan
Stock plans:
Total shares of common stock reserved for future issuance (in shares)	8,508
Options outstanding
Stock plans:
Options outstanding (in shares)	1,158
RSUs
Stock plans:
RSUs (in shares)	6,964	5,737

Equity Awards - Narrative (Deta

Equity Awards - Narrative (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($) plan shares	Sep. 30, 2022 USD ($)	Dec. 31, 2022 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity incentive plans | plan	3
Increased in authorized shares (in shares) | shares	10,000,000
Fair value of stock options vested	$ 5
Granted (in shares) | shares	0
Total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options	$ 30
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining weighted-average period	1 year
Restricted stock units with service condition only
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding (in shares) | shares	6,500,000
Restricted stock units with service and performance conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding (in shares) | shares	500,000
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining weighted-average period	3 years
Number of shares outstanding (in shares) | shares	6,964,000		5,737,000
Aggregate intrinsic value, vested	$ 1,200
Aggregate intrinsic value, outstanding	3,900
Aggregated intrinsic value, expected to vest	3,400
Unrecognized compensation expense expected to be recognized	$ 2,700
Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares eligible to vest (percent)	100%
Stock-based compensation expense, net of actual and estimated forfeitures	$ 111	$ 91
Performance-based RSUs | Vesting, tranche one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting term	2 years
Performance-based RSUs | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares eligible to vest (percent)	0%
Performance-based RSUs | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares eligible to vest (percent)	200%
2012 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock purchase price percentage	85%
Award offering period	6 months

Equity Awards - Summary of Stoc

Equity Awards - Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
Number of Shares
Outstanding, beginning balance (in shares) | shares	1,237
Exercised (in shares) | shares	(24)
Forfeited (in shares) | shares	(55)
Outstanding, ending balance (in shares) | shares	1,158
Vested and expected to vest (in shares) | shares	940
Vested and exercisable (in shares) | shares	149
Weighted- Average Exercise Price Per Share
Outstanding, beginning balance (in USD per share) | $ / shares	$ 590.36
Exercised (in USD per share) | $ / shares	66.20
Forfeited (in USD per share) | $ / shares	626.10
Outstanding, ending balance (in USD per share) | $ / shares	599.26
Vested and expected to vest (in USD per share) | $ / shares	582.46
Vested and exercisable (in USD per share) | $ / shares	$ 193.82
Weighted-average remaining contractual term, outstanding	7 years 8 months 12 days
Weighted-average remaining contractual term, vested and expected to vest	7 years 7 months 6 days
Weighted-average remaining contractual term, vested and exercisable	5 years 2 months 12 days
Aggregate intrinsic value, exercised | $	$ 11
Aggregate intrinsic value, outstanding | $	68
Aggregate intrinsic value, vested and expected to vest | $	67
Aggregate intrinsic value, vested and exercisable | $	$ 54

Equity Awards - Restricted Stoc

Equity Awards - Restricted Stock Unit Table (Details) - RSUs shares in Thousands	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Number of Shares
Outstanding, beginning balance (in shares)	5,737
Granted (in shares)	3,951
Vested (in shares)	(2,338)
Forfeited (in shares)	(386)
Outstanding, ending balance (in shares)	6,964
Expected to vest (in shares)	6,135
Weighted-Average Grant-Date Fair Value Per Share
Outstanding, beginning balance (in USD per share) | $ / shares	$ 505.79
Granted (in USD per share) | $ / shares	472.32
Vested (in USD per share) | $ / shares	469.05
Forfeited (in USD per share) | $ / shares	507.13
Outstanding, ending balance (in USD per share) | $ / shares	$ 499.57

Net Income Per Share - Schedule

Net Income Per Share - Schedule of Basic and Diluted Net Income Per Share Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net income	$ 242	$ 80	$ 1,436	$ 175
Denominator:
Weighted-average shares outstanding - basic (in shares)	204,464	202,045	203,961	201,026
Weighted-average shares outstanding - diluted (in shares)	206,277	203,121	205,194	203,350
Net income per share - basic (in USD per share)	$ 1.18	$ 0.39	$ 7.04	$ 0.87
Net income per share - diluted (in USD per share)	$ 1.17	$ 0.39	$ 7	$ 0.86
Total potentially dilutive securities (in shares)	3,068	5,255	3,647	4,836
Stock options
Denominator:
Potentially dilutive securities (in shares)	122	120	118	146
RSUs
Denominator:
Potentially dilutive securities (in shares)	1,674	956	1,113	1,598
ESPP obligations
Denominator:
Potentially dilutive securities (in shares)	17	0	2	0
Convertible senior notes | 2022 Notes
Denominator:
2022 notes settlements (in shares)	0	0	0	375
2022 Warrants | Warrants
Denominator:
Settlement of 2022 warrants (in shares)	0	0	0	205

Provision for (Benefit from) _2

Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Income Taxes [Line Items]
Income tax provision (benefit)		$ 57	$ 22	$ (775)	$ 41
Valuation allowance						$ 1,200
Discrete tax benefit				843
Effective tax rate, value				142
California Tax Authority
Income Taxes [Line Items]
Valuation allowance		$ 177		$ 177
Forecast
Income Taxes [Line Items]
Effective tax rate, value	$ 65

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Aug. 31, 2020
Debt Instrument [Line Items]
Operating lease costs	$ 33	$ 28	$ 96	$ 84
Operating lease liabilities, payments			61	56
Right-of-use assets obtained in exchange for operating lease liabilities			$ 93	$ 73
Weighted-average lease remaining lease term	9 years		9 years
Weighted-average discount rate	4%		4%
Purchase agreement	$ 500		$ 500
Purchase commitment, period	5 years
Unrecognized tax benefits	$ 45		45
2030 Notes
Debt Instrument [Line Items]
Principal	$ 1,500		$ 1,500		$ 1,500

Commitments and Contingencies_2

Commitments and Contingencies - Maturity of Operating Lease Liabilities (Details) $ in Millions	Sep. 30, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2023	$ 28
2024	107
2025	118
2026	96
2027	80
Thereafter	490
Total operating lease payments	919
Less: imputed interest	(146)
Present value of operating lease liabilities	$ 773

Information about Geographic _3

Information about Geographic Areas and Products - Geographic Disclosures (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Revenues by geography
Total revenues	$ 2,288	$ 1,831	$ 6,534	$ 5,305
Property and equipment by geography
Property and equipment, net	$ 1,199		$ 1,199		$ 1,053
Percentage of U.S. revenues in North America	94%	94%	94%	94%
Percentage of U.S. net property and equipment in North America	83%		83%		85%
North America
Revenues by geography
Total revenues	$ 1,452	$ 1,209	$ 4,165	$ 3,464
Property and equipment by geography
Property and equipment, net	786		786		$ 664
EMEA
Revenues by geography
Total revenues	585	432	1,664	1,299
Property and equipment by geography
Property and equipment, net	257		257		221
Asia Pacific and other
Revenues by geography
Total revenues	251	$ 190	705	$ 542
Property and equipment by geography
Property and equipment, net	$ 156		$ 156		$ 168

Information about Geographic _4

Information about Geographic Areas and Products - Subscription Revenues (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information [Line Items]
Subscription revenues	$ 2,288	$ 1,831	$ 6,534	$ 5,305
Digital workflow products
Segment Reporting Information [Line Items]
Subscription revenues	1,961	1,534	5,587	4,437
ITOM products
Segment Reporting Information [Line Items]
Subscription revenues	255	208	728	594
Total subscription revenues
Segment Reporting Information [Line Items]
Subscription revenues	$ 2,216	$ 1,742	$ 6,315	$ 5,031

Uncategorized Items - now-20230

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2020-06 [Member]