NOW Stock: Software Maker ServiceNow’s Earnings Handily Beat Estimates

ServiceNow (NOW) reported first-quarter earnings that handily topped views while revenue edged by consensus estimates. NOW stock rose as a key financial metric — current remaining performance obligations, or CRPO — came in above expectations.

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Reported after the close on Wednesday, ServiceNow earnings were $2.37, up 37% from the year-earlier period.

Revenue climbed 22% to $2.096 billion, said the Santa Clara, Calif-based enterprise software maker.

Meanwhile, NOW stock analysts expected the company to report earnings of $2.04 a share on revenue of $2.09 billion.

NOW Stock: Gain In Subscription Revenue

In addition, ServiceNow said subscription revenue rose 24% to $2.02 billion, topping the consensus estimate of $1.996 billion.

ServiceNow’s first-quarter CRPO bookings came in at $7.01 billion, up 23% from a year earlier. The software maker had forecast 21% growth to $6.884 billion.

CRPO bookings are an aggregate of deferred revenue and order backlog and serve as a sales growth metric.

For the June quarter, ServiceNow predicted subscription revenue in a range of $2.04 billion to $2.045 billion vs. estimates of $2.03 billion.

NOW stock rose 2.4% to near 465 in extended trading on the stock market today. ServiceNow stock holds a new cup-with-handle buy point of 485.68.

ServiceNow Stock: Analyst Day May 16

Heading into the ServiceNow earnings report, NOW stock had gained 14% 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.

ServiceNow plans to host an analyst day May 16, where it’s expected to discuss long-term business trends.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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