ServiceNow Beats Analyst Expectations with Strong Q1 Results
ServiceNow (NOW) reported its first-quarter financial results on Wednesday, surpassing analyst estimates and showcasing continued growth.
Quarterly earnings per share reached $3.41, surpassing the consensus estimate of $3.14, while sales hit $2.6 billion, beating the anticipated $2.59 billion. This represents a substantial 24.19% increase compared to the same period last year.
The company’s subscription revenue growth remained strong, reaching 25% year-over-year or 24.5% in constant currency. Notably, ServiceNow recorded eight transactions over $5 million in net new ACV during the first quarter, reflecting a 100% increase year-over-year.
ServiceNow CEO Bill McDermott expressed enthusiasm about the company’s performance: “ServiceNow is off to a fast start with an outstanding first quarter. As leaders seek significant productivity improvements, ServiceNow has first mover advantage with years of investment in AI technology and talent. Our GenAI offerings are the fastest selling in the company’s history. We are humbled by the trust our customers are investing in our platform.”
Looking ahead, ServiceNow anticipates an adjusted subscription revenue growth of 22% for the second quarter. However, a strengthening U.S. Dollar has adversely impacted its 2024 guidance, resulting in a negative 2-point impact on its second-quarter constant revenue growth percentage.
In the after-hours trading, ServiceNow shares experienced a slight decline of 4.91%, reaching $709.75 at the time of publication.
