ServiceNow Raises Annual Subscription Sales Forecast After Strong Q1
ServiceNow Raises Annual Sub...
Subscribe to Newsletter

ServiceNow Raises Annual Subscription Sales Forecast After Strong Q1

27 April 2023
3672
2 min.
4
ServiceNow Raises Annual Subscription Sales Forecast After Strong Q1

ServiceNow makes history

ServiceNow, the enterprise software company founded in 2003, reported its first $2 billion quarter and raised its full-year guidance for subscription sales. The company's fiscal first-quarter net earnings were $150 million, or 73 cents a share, compared with net earnings of $75 million, or 37 cents a share, in the year-ago quarter. Adjusted earnings were $2.38 a share.

Revenue also jumped 22% to $2.096 billion, compared with $1.72 billion a year ago. ServiceNow's CEO, Bill McDermott, stated in an interview, "We're the fastest enterprise software company to reach that milestone. We are the platform for end-to-end digital transformation. We have hit a new gear."

The company's increased annual subscription-sales forecast is now between $8.47 billion and $8.52 billion. This news comes as shares of ServiceNow have gained 17% so far this year, while the broader S&P 500 has increased 5.6%.

Analysts surveyed by FactSet had expected, on average, quarterly net earnings of $2.04 a share on revenue of $2.09 billion. While the stock initially rose in after-hours trading, it closed the extended session down 2%.

"While a lot of focus has been on the cutting edge of generative [artificial intelligence], it's hard not to see a company like ServiceNow as the more pragmatic part of the AI continuum," said Daniel Newman, principal analyst at Futurum. "Probably the most interesting thing is how well ServiceNow is situated to aggressively layer on generative capabilities to enable its customers to disrupt old and antiquated software stacks to deliver greater value and become an even more disruptive force in the software marketplace."

In conclusion, ServiceNow's first $2 billion quarter and raised subscription sales guidance demonstrate their continued success in the enterprise software industry. While competitors and external factors may pose challenges, the company's focus on digital transformation and potential AI capabilities position them for future growth.

Persons2 and Companies2 in the news

Chief Analyst of Futurum Research
1 place
Chief Executive Officer of ServiceNow
2 place
ServiceNow
1 place
FactSet
2 place
Section:
Rating companies
Instagram
17 Mention
Netflix
17 Mention
X (Twitter)
11 Mention
Amazon
8 Mention
TikTok
8 Mention
Tesla
8 Mention
White House
7 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8165780668
Died this year
50651798
Born this year
124612388