ServiceNow, Inc. NOWreported its first-quarter financial results after the bell Wednesday. Here’s a look at the highlights.
The Details:
ServiceNow reported quarterly earnings of $3.41 per share which beat the analyst consensus estimate of $3.14 by 8.6%.
Quarterly sales came in at $2.6 billion which beat the analyst consensus estimate of $2.59 billion and represents a 24.19% increase over sales of $2.1 billion from the same period last year.
The company reported subscription revenues of $2.523 billion in the first quarter, representing 25% year-over-year growth, 24.5% in constant currency. ServiceNow highlighted recording eight transactions over $5 million in net new ACV in the first quarter, up 100% year-over-year.
“ServiceNow is off to a fast start with an outstanding first quarter,” said ServiceNow CEO Bill McDermott. “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. As we engineer Now Assist AI into every business workflow across every enterprise, we are giving people the power to know more, care more, and do more.”
Outlook:
ServiceNow sees second-quarter adjusted subscription revenue growth of 22%.
The company initiated a program to hedge a portion of its forecasted foreign currency denominated revenues. While the cash flow hedging program is designed to reduce the impact of foreign currency exchange rate fluctuations on its subscription revenues, the strengthening of the U.S. Dollar since December 31, 2023 has still resulted in an adverse impact to its 2024 guidance.
The company expects negative 2-point impact to its second-quarter cRPO growth, as the balance of its U.S. Federal business contracts containing 12-month renewal terms amortized into revenue.
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NOW Price Action: According to Benzinga Pro, ServiceNow shares are down 4.91% after-hours at $709.75 at the time of publication Tuesday.
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