ServiceNow Inc. reported a quarterly performance that exceeded expectations on Wednesday, citing “strong demand in all regions and workflows”.
The Silicon Valley-based workflow software manufacturer reported net income of $59 million, or 29 cents per share, in the second quarter, compared with $41 million, or 20 cents per share, in the same period last year. After adjusting for stock compensation, depreciation and amortization, and other costs, earnings per share were $1.42. Revenue increased from US$1.1 billion in the same period last year to US$1.4 billion, and subscription revenue increased by 31% year-on-year to US$1.33 billion.
Analysts surveyed by FactSet forecast earnings per share of $1.21 and revenue of $1.36 billion.
The company also reported that the number of customers with annual contracts worth more than $1 million has increased by 25% year-on-year.
“We are a platform for digital business, and we are becoming a company with more than $1.5 billion in revenue,” ServiceNow NOW said.
Chief Financial Officer Gina Mastantuono (Gina Mastantuono) at the press conference.
“ServiceNow is the control tower for the digital transformation of every company in every industry,” CEO Bill McDermott said on the company’s earnings conference call.
ServiceNow expects subscription revenue in the third quarter to be between US$1.4 billion and US$1.405 billion. Analysts previously predicted that subscription revenue would be US$1.39 billion and total revenue would be US$1.45 billion.
The company also raised its full-year guidance for subscription revenue to between US$5.53 billion and US$5.54 billion, higher than analysts’ forecast of US$5.47 billion in subscription sales.
ServiceNow’s stock price fell about 0.6% after the market, after rising nearly 0.2% on a regular trading day to close at $583.35.
ServiceNow’s stock price has risen nearly 6% so far this year, and has risen about 34% in the past 52 weeks. In contrast, the S&P 500 Index SPX,
It has risen by more than 17% so far this year, and it has risen by 35% in the past year.
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