2 min Applications

ServiceNow sees turnover grow by 36 percent, but incurs a small loss

ServiceNow sees turnover grow by 36 percent, but incurs a small loss

ServiceNow has announced its results for 2018. Turnover rose sharply, from USD 1.9 billion to USD 2.6 billion (EUR 2.3 billion). That is a growth of no less than 36 percent. A little less beautiful is the net loss of $26.7 million that the company suffered. Yet that is much less than a year before, when the loss amounted to 149.1 million dollars.

Of the 2.6 billion dollars that ServiceNow could quote on the books, 2.4 billion dollars came from subscriptions. That’s 39 percent more than a year earlier and higher than expected. The company assumed a turnover of $2.35 to $2.37 billion in 2018 from subscriptions. The professional services division also saw its turnover grow: by 5 percent to 187 million dollars.

Good grades

In the fourth quarter of 2018, ServiceNow was able to record a turnover of 715 million dollars. Net profit for the quarter was $7 million. This seems to be going well with the company, which is gradually moving towards profitability. In any case, the substantial investments that it makes are necessary in order to attract customers. As a result, the company saw its cash reserves fall sharply, to USD 556 million. A year earlier, that was $726.5 million. However, all purchases had a combined value of 3.88 billion dollars, compared to 3.55 billion dollars a year earlier.

ServiceNow made many acquisitions in 2018, including that of FriendlyData. It took over that cloud company offering a natural language interface for databases in October. The company also acquired techstartup Parlo, SaaS company VendorHawk and SkyGiraffe, among other things. With these technological improvements, we want to enable everyone to make easier data-driven decisions, increase productivity and make companies grow faster, says Pat Casey the SVP of development and operations of ServiceNow on the acquisition of FriendlyData.

ServiceNow expects to be able to generate $3.2 billion in revenue from subscription services in 2019. It therefore believes that the turnover from this will grow by 33 percent.

This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.