ServiceNow 4Q Subscription Revenue Climbs, Raises Fiscal Year Guidance

By Sabela Ojea

ServiceNow said subscription revenue grew ahead of management expectations in the fourth quarter and raised its guidance for its key financial metric.

The cloud-based platform on Wednesday posted a net profit of $295 million, or $1.43 a share, compared with $150 million, or 74 cents a share, for the same period a year earlier. Analysts surveyed by FactSet had forecast a profit of $238.8 million, or 96 cents per share.

Revenue jumped 26%, to $2.44 billion, beating analysts expectations of $2.40 billion. The company said subscription revenue rose 27%, to $2.37 billion, coming ahead an internal outlook of $2.32 billion to $2.33 billion.

ServiceNow expects to end the first quarter with subscription revenue of $2.51 billion to $2.52 billion, and to close 2024 with subscription revenue of $10.56 billion to $10.58 billion.

In October, the company had guided for full-year subscription revenue of $8.635 billion to $8.640 billion.

Write to Sabela Ojea at [e-mail]

(END) Dow Jones Newswires

January 24, 2024 16:40 ET (21:40 GMT)

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