Latest News

ServiceNow’s stock wavers despite strong subscription sales, revenue jump as AI products gain hold

0

ServiceNow Inc.’s stock bounced between slight gains and losses in after-hours trading Wednesday, after the company reported a quarterly bounce in revenue on strong subscription sales.

“The gen-AI solutions we put into the marketplace in one quarter outsold any other product we put in the market,” ServiceNow
NOW,
+1.33%

Chief Executive Bill McDermott said in an interview Wednesday.

The software company is riding the momentum of a 27% jump in quarterly subscription sales to $2.37 billion, and an aggressive push into artificial intelligence through partnerships with Nvidia Corp.
NVDA,
+2.49%
,
Amazon.com Inc.’s
AMZN,
+0.54%

AWS and others.

ServiceNow posted fiscal fourth-quarter net income of $295 million, or $1.43 a share, compared with net income of $150 million, or 74 cents a share, in the year-ago quarter. Adjusted earnings were $3.14 a share.

Revenue improved 26% to $2.44 billion, from $1.94 billion in the same quarter a year ago.

Analysts surveyed by FactSet had expected, on average, quarterly adjusted net earnings of $2.78 a share on revenue of $2.4 billion. They forecast $2.3 billion in quarterly subscription sales for ServiceNow.

ServiceNow expects fiscal first-quarter subscription sales of between $2.51 billion and $2.515 billion. Analysts are forecasting $2.54 billion.

Shares of ServiceNow have rocketed 70% over the past 12 months, while the broader S&P 500 
SPX
has improved 21.5%.

Analysts characterized the quarter as exceptional.

“Faster-than-expected generative-AI adoption and key partnerships (Visa
V,
+0.14%
,
Ernst & Young) position [ServiceNow] for continued success — especially with its robust RPO (remaining performance obligation) metric and ACV (annual contract value), which now exceeds $10 billion,” Daniel Newman, principal analyst and CEO at the Futurum Group, said in an email.

Virgin Galactic shares fall ahead of penultimate Unity spacecraft mission

Previous article

That’s rich: A Richie Rich comic sold for $108,000 last year — more will soon be auctioned off

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News