2 min

In the first financial quarter, ServiceNow posted revenue of $2.6 billion, or about €2.4 billion.

Exactly one year ago, ServiceNow posted revenue of nearly $2.1 billion. With that, the company saw its revenue increase 24 per cent year-on-year. The most revenue now comes from subscriptions; last quarter, $2.52 billion (25 per cent growth) was raised through subscriptions. ServiceNow categorizes the remaining revenue as professional services and other revenues.

Below the line, ServiceNow also posted a profit. After deducting expenses, the company posted a profit of $347 million, more than double its profit from a year earlier, when it posted a profit of $150 million.

“As leaders seek significant productivity improvements, ServiceNow has first mover advantage with years of investment in AI technology and talent. Our GenAI offerings are the fastest selling in the company’s history,” responded CEO Bill McDermott. “As we engineer Now Assist AI into every business workflow across every enterprise, we are giving people the power to know more, care more, and do more.”

Despite good performance concerns

Financially, ServiceNow has performed strongly over the past three months, but when presenting its figures, the company failed to convince investors sufficiently. After hours trading, the share value fell nearly 5 per cent. That reaction is mainly in the outlook that ServiceNow simultaneously shared. In the second quarter, the company is counting on subscription revenue of between $2.525 billion and $2.53 billion. That is below analysts’ expectations of $2.54 billion. That lower estimate would come partly because of a rollback in spending by companies, which are cautious because of challenging economic conditions.

Tip: ServiceNow Washington seeks balance between human and artificial intelligence