Our team is executing, maintaining a swift pace toward our path to $10 billion in revenue and beyond.
In Q1, we grew subscription revenue 30% year over year, exceeding the high end of our guidance.
We delivered strong profitability with operating margin over 27%.
And we increased free cash flow margin 7 points year over year to 46%.
As a result, digital investments are at an all-time high and will total more than $7.8 trillion by 2024, according to IDC.
Our team of 14,000 colleagues are exponential thinkers.
In just the past 18 months, we have more than doubled the features and functionality of our platform for our customers.
We're proud that Quebec, our latest platform release, delivered 1,700 new customer capabilities; breakthrough innovations like predictive AI operations, AI search, and virtual agents that enhance every experience, to name a few.
By the end of 2021, Forrester Research predicts that 75% of development shops will use low-code platforms.
In just 10 days, NCI leveraged ServiceNow to build a new application for an online portal to collect and track specimens from COVID-19 patients.
ITSM was in 12 of our top 20 deals.
ITOM had a strong quarter and was in 13 of the top 20 deals.
Creator workflows, our platform business, was in 19 of our top 20 deals.
Three of our top 10 app engine wins came from APJ, where we are seeing increased awareness of ServiceNow and is continuing to drive demand.
In the U.S., the Now Platform is at the heart of the city of Los Angeles' digital transformation, helping to provide reliable access to essential services for its 4 million citizens.
Employee workflows were included in eight of our top 20 deals.
1 priority, caring for children.
Within two hours of the portal going live, 120,000 people have registered and received an appointment.
ServiceNow ended Q1 working with over 100 organizations and governments globally to help vaccinate people at scale.
That's why we're so grateful to be named to the Fortune 100 "best places to work" list for the first time.
And we're proud to have increased our position on the Fortune's Best Workplaces in Technology list by more than 10 points.
We are well on our way to $10 billion and beyond, and we are striving with all we have to be the defining enterprise software company of the 21st century.
Q1 subscription revenues were $1.293 billion, representing 30% year-over-year growth inclusive of a 4-point tailwind from FX.
Remaining performance obligations or RPO ended the quarter at approximately $8.8 billion, representing 34% year-over-year growth, putting us well on our way toward our $10 billion revenue target.
Current RPO was approximately $4.4 billion, representing 33% year-over-year growth and a 100 basis points beat versus our guidance.
Notably, we delivered that beat with 100 basis points less of an FX tailwind.
Due to the weaker euro, currency contributed 4 points instead of our original outlook for a 5-point tailwind.
Q1 subscription billings were $1.365 billion, representing 29% year-over-year growth and a $50 million beat versus the high end of our guidance.
Our renewal rates remained strong at 97%, as the Now Platform remains a mission-critical part of our customers' operations.
We closed 37 deals greater than $1 million ACV in the quarter, including seven net new customers.
Our focus on selling comprehensive solutions instead of point products continue to drive more multi-product deals as 17 of our top 20 deals included three or more products.
We now have 1,146 customers paying us over $1 million in ACV, up 23% year over year.
And the number of customers paying us $5 million or more in ACV grew over 50% year over year.
Operating margin was 27%, up 300 basis points year over year, driven by our strong top-line outperformance and the timing of some spend that will shift into Q2.
Our free cash flow margin was 46%, up 700 basis points year over year, driven by strong collections and lower T&E.
The industries highly affected by COVID that we outlined early last year, which represent about 20% of our business, remained resilient in Q1.
For Q2, we expect subscription revenues between $1.29 billion and $1.295 billion, representing 27% to 28% year-over-year growth, including a 300-basis-point FX tailwind.
We expect cRPO growth of 30% year over year, including a 250-basis-point FX tailwind.
We expect subscription billings between $1.25 billion and $1.255 billion, representing 23% year-over-year growth.
Growth includes a net tailwind from FX and duration of 300 basis points.
We expect an operating margin of 21.5%, which includes $15 million of sales and marketing spend that shifted out of Q1 and into Q2; and 202 million diluted weighted outstanding shares for the quarter.
We are increasing the midpoint of our previous subscription revenue expectations by $32 million based on the strong trends we saw in Q1.
However, a weaker euro resulted in a $59 million headwind to our growth.
Taken together, we expect subscription revenues between $5.455 billion and $5.47 billion, representing 27% to 28% year-over-year growth.
Similarly, we're increasing the midpoint of our previous subscription billings expectation by $50 million on a constant-currency basis.
However, the weaker euro resulted in a $68 million headwind to our growth.
Taken together, we expect subscription billings between $6.19 billion and $6.205 billion, representing 24% to 25% year-over-year growth.
This includes a net tailwind from FX and duration of 150 basis points.
We now expect about 21% of our total subscription billings to be in Q3 and 37% to be in Q4.
We continue to expect subscription gross margins of 85% and an operating margin of 23.5%.
Finally, we expect free cash flow margin of 30% and 202 million diluted weighted outstanding shares for the year.

Summary:
Q1 subscription revenues were $1.293 billion, representing 30% year-over-year growth inclusive of a 4-point tailwind from FX.