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ServiceNow Inc. stock. jumped more than 7% in extended trading on Wednesday after the software company reported fiscal earnings in the first quarter that topped Wall Street forecasts.
ServiceNow NOW,
reported net income of $ 352 million, or $ 1.73 a share, compared to net income of $ 306 million, or $ 1.52 a share, in the previous quarter. Revenue rose 29% to $ 1.75 billion from $ 1.36 billion last year. Analysts analyzed by FactSet expected net income of $ 1.70 per share on revenue of $ 1.7 billion.
ServiceNow Chief Executive Bill McDermott told MarketWatch in an interview that his company was able to “play above the sun” by three main factors: subscription sales grew 29% to $ 1.63 billion; renewal rates are 98%; and ServiceNow announced 52 transactions totaling more than $ 1 million in new annual contract value, up 41% year-over-year and the company’s fastest growth since 2018.
Like almost every major tech stock, ServiceNow stock has fallen 26% this year, while the broader S&P 500 index SPX,
dropped 12%.
“ServiceNow delivered another strong quarter of top -line growth while expanding its large customer base and seeing near -perfect retention rates,” Daniel Newman, chief analyst at Futurum Research, told MarketWatch.
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