service now (NOW) on Wednesday reported first-quarter earnings and revenue that beat Wall Street estimates. ServiceNow shares fell as other key financial metrics fell short of expectations, while guidance came in slightly below expectations.
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After the market closed, ServiceNow reported that profit for the quarter ended March 31 rose 44% to $3.41 per share on an adjusted basis compared to the same period last year.
Additionally, sales rose 24% to $2.6 billion, the Santa Clara, California-based business software maker said.
ServiceNow stock analysts had expected the company to report earnings of $3.14 per share on revenue of $2.59 billion.
Additionally, ServiceNow said subscription revenue rose 25% to $2.52 billion, above the consensus estimate of $2.51 billion.
NOW Stock: Subscription Revenue Outlook Slight
ServiceNow’s current remaining performance obligations (CRPO) were above expectations. CRPO rose 21% to $8.45 billion. Analysts had forecast a CRPO of $8.41 billion.
CRPO bookings are a sum of deferred sales and order backlog and serve as a measure of sales growth.
On the stock market today, ServiceNow shares fell more than 5% to 708.39.
For the current quarter ending in June, ServiceNow forecast subscription revenue in the range of $2.525 to $2.530, versus estimates of $2.533 billion.
According to the ServiceNow earnings report, the software stock has gained 6% in 2024 and 59% over the past 52 weeks.
The company’s software tracks and manages the services provided by IT departments. Additionally, the self-service tech portal allows company employees to access management and workflow tools.
In addition, ServiceNow has expanded its core business to include software for human resources, customer service management and security.
Meanwhile, ServiceNow is hosting an investor day on May 6 alongside its Knowledge customer conference. The company is expected to update its artificial intelligence strategy. Financial goals can also be discussed.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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