NOW · Forward model · Professional services and other
What has to happen in Professional services and other
Model as of
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Professional services and other
Basis quarter$110M
Final quarter$155M
Implied CAGR+7%
Final revenue mix2%
Implementation, training and other services sold at or below cost to get subscriptions deployed. It was 2.8% of revenue in 2026 Q2 and ran a GAAP gross loss of 26%. It matters to this model only as a small, deliberately unprofitable add-on that must not be allowed to flatter or distort consolidated margin.
Last four quarters
2025 Q3
$108M
Reported
2025 Q4
$102M
Reported
2026 Q1
$99M
Reported
2026 Q2
$110M
Reported
Implementation servicesTrainingOther
Sequential growth
+2.0%/qtr
decaying toward +1.5%
H1 2026 of $209m against H1 2025 of $185m is +13% YoY; 2.0% a quarter is 8.2% a year, deliberately below subscription.
Professional services and other
Latest: $155M (2031Q2E)
| Period | Value |
|---|---|
| 2022Q4 | $80M |
| 2023Q1 | $72M |
| 2023Q2 | $75M |
| 2023Q3 | $72M |
| 2023Q4 | $72M |
| 2024Q1 | $80M |
| 2024Q2 | $85M |
| 2024Q3 | $82M |
| 2024Q4 | $91M |
| 2025Q1 | $83M |
| 2025Q2 | $102M |
| 2025Q3 | $108M |
| 2025Q4 | $102M |
| 2026Q1 | $99M |
| 2026Q2 | $110M |
| 2026Q3E | $112M |
| 2026Q4E | $114M |
| 2027Q1E | $117M |
| 2027Q2E | $119M |
| 2027Q3E | $121M |
| 2027Q4E | $123M |
| 2028Q1E | $125M |
| 2028Q2E | $127M |
| 2028Q3E | $130M |
| 2028Q4E | $132M |
| 2029Q1E | $134M |
| 2029Q2E | $136M |
| 2029Q3E | $138M |
| 2029Q4E | $141M |
| 2030Q1E | $143M |
| 2030Q2E | $145M |
| 2030Q3E | $148M |
| 2030Q4E | $150M |
| 2031Q1E | $152M |
| 2031Q2E | $155M |
Assumptions & reasoning
- Fifteen quarters of disclosed history. The line has ranged from $72m to $110m and has never exceeded 4.2% of total revenue in the window.
- The basis margin is the non-GAAP gross margin: revenue of $110m less cost of revenues of $139m plus the $13m of stock-based compensation inside that cost line gives -14.5%. On a GAAP basis it is -26.4%.
- Aseasonal, and the evidence is that the apparent Q1-soft, Q2-firm shape is inside its own noise: the derived Q1 factor of 0.961 comes from two observations of 1.019 and 0.895, a 12.4-point spread against a 4-point signal.
- One large engagement moves this line by more than any calendar effect does, so no single print should be read as a trend.