ServiceNow’s Cloud RISES and So Does its stock.
ServiceNow (NYSE:NOW) saw a significant surge in their share prices following an updated forecast for their annual subscription revenue. The Q2 financial results exceeded market expectations, garnishing further investor confidence. Additionally, the company has announced organizational changes with Chris Bedi stepping in as the interim Chief Product Officer following the departure of COO CJ Desai.
The company’s Q2 report revealed an adjusted earnings of $3.13 per share on a total revenue of $2.63B, surpassing Wall Street’s projected EPS of $2.82 and revenue of $2.60B.
Subscription revenues witnessed a 23% increase to $2.54 billion, compared to Q2 2023, which can be attributed to new business acquisitions.
ServiceNow’s shares saw a more than 6% increase in premarket trading on Thursday.
There was an impressive increase in the company’s backlog with 88 transactions exceeding $1 million in net new annual contract revenue (ACV) in Q2 2024, marking a year-over-year growth of 26%.
The remaining performance obligations (RPOs) were valued at $18.6 billion as of Q2, indicating a year-over-year growth of 31%.
ServiceNow, poised for future growth, has raised its subscription revenue guidance to a range between $2.66B to $2.67B, up from the previous estimate of $2.525B to $2.530B.
Based in Santa Clara, California, ServiceNow, Inc., initially known as Glidesoft from 2003 to 2006, is a publicly-traded company that’s been in operation for over 21 years. Pioneered by founders like Fred Luddy, David Loo, Don Goodliffe, Bow Ruggeri, and Patrick Casey, ServiceNow holds a prominent position in the enterprise software industry. It serves customers globally and is helmed by CEO Bill McDermott and Chairman Fred Luddy. The company’s key offering is a cloud computing platform that facilitates the management of digital workflows for enterprise operations.
