ServiceNow reported second-quarter earnings that handily beat analyst estimates while revenue only edged by views. NOW stock dipped Thursday on the financial results and its outlook.
Reported after the close on Wednesday, ServiceNow earnings came in at $2.37 per share, up 46% from the year-earlier period. Total revenue climbed 23% to $2.15 billion, said the Santa Clara, Calif-based enterprise software maker. NOW stock analysts expected the company to report earnings of $2.04 a share on revenue of $2.13 billion.
ServiceNow's current remaining performance obligations, or CRPO, came in above expectations during the quarter. CRPO bookings were $7.2 billion, up 25% from a year earlier. The software maker had forecast 23% growth.
CRPO bookings are an aggregate of deferred revenue and order backlog and serve as a sales growth metric.
In addition, ServiceNow said subscription revenue rose 25% to $2.075 billion, topping analyst estimates for $2.04 billion.
NOW Stock: Subscription Outlook Raised
For full-year 2023, ServiceNow raised its subscription revenue outlook to a range of $8.580 billion to $8.6 billion, or about 25% growth. That topped analyst estimates for $8.505 billion.
Also, the company announced a partnership with Nvidia and Accenture to accelerate adoption of artificial intelligence software in the corporate market.
NOW stock fell 3% to close at 559.89 on the stock market today. Heading into the ServiceNow earnings report, shares had shot up 50% in 2023.
The company's software tracks and manages services provided by information-technology departments. Also, its self-service tech portal enables company employees to access administrative and workflow tools.
Further, ServiceNow has expanded from its core business into software for human resources, customer service management and security.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
