ServiceNow’s turnover increased by 36%, but the loss was small

ServiceNow has announced its 2018 results. Strong turnover growth: from 1.9 billion US dollars to 2.6 billion US dollars (2.3 billion euros). The growth rate is not less than 36%. Slightly worse is the company’s net loss of $26.7 million. But this is far less than the loss a year ago, when it lost $149.1 million.

Of the $2.6 billion recorded in ServiceNow’s books, $2.4 billion came from subscriptions. This is an increase of 39% from a year ago and is higher than expected. The company estimates that subscription business sales in 2018 will be between $2.35 and $2.37 billion. The turnover of the professional services sector also increased: it increased by 5% to US$187 million.

Good results

In the fourth quarter of 2018, ServiceNow’s sales were $715 million. Net income for the quarter was $7 million. For the company, this seems to be going well, and the company is gradually moving towards profitability. In any case, the large investments it makes are necessary to acquire customers. As a result, the company’s cash reserves dropped sharply to 556 million US dollars. It was 726.5 million US dollars a year ago. However, the total value of all purchases was US$3.88 billion, compared with US$3.55 billion in the same period last year.

ServiceNow made many acquisitions in 2018, including the acquisition of FriendlyData. In October, the company took over the cloud company that provides natural language interfaces for databases. The company also acquired technology startup Parlo, SaaS companies VendorHawk and SkyGiraffe. Pat Casey, senior vice president of development and operations for ServiceNow’s acquisition of FriendlyData, said: “With these technological advancements, we hope to make it easier for everyone to make data-based decisions, increase productivity and accelerate business growth.”

ServiceNow expects subscription services to generate approximately $3.2 billion in revenue in 2019. Therefore, it believes that its turnover will increase by 33%.