ServiceNow exceeded expectations on earnings and revenue as it completed several significant transactions, actions that led to its stock soaring 10% in extended trading. ServiceNow reported it made a profit before some costs (like stock compensation) of $1.49 per share on revenue of $1.629 billion. Wall Street had predicted earnings of $1.43 per share on revenue of $1.6 billion.
ServiceNow reported it closed on 135 transactions with more than $1 million in net new annual contract revenue during the quarter, a 52% increase from a year ago. The company now has more than 1350 customers with more than $1 million in annual contract value, a 25% increase from the same time last year.
Growing at blistering speeds
Bill McDermott, the CEO and President, said that the company beat the expectations with its Q4 earnings, reporting that customer demand is going from strength to strength. McDermott cited its unique culture, which he credits for making it one of the best places to work.
Speaking of the company’s rise, the CEO said it is growing like a fast-moving startup while showing the profitability of “a global market leader.” ServiceNow’s growth is visible in subscription revenue too, which went up 29% from a year ago to hit $1.523 billion.
A hugely ambitious company
ServiceNow’s software is used by enterprises’ IT departments to track and manage their services. In addition, it can also be used to provide admin and workflow management solutions, with recent additions expanding it to cover departments like Human Resources, IT security, and Customer Service Management.
ServiceNow has genuinely been successful and popularized workflow as a concept. The ambition is also unmatched since the company wants to bring in more than $15 billion in annual revenue by 2026.