ServiceNow Reports Q1 Results and Q2 Guidance, Shares Fall
Portfolio Pulse from Erica Kollmann
ServiceNow, Inc. (NYSE:NOW) reported Q1 earnings of $3.41 per share, surpassing estimates of $3.14, and sales of $2.6 billion, beating estimates and marking a 24.19% year-over-year increase. Subscription revenues grew 25% year-over-year to $2.523 billion. The company sees a 22% adjusted subscription revenue growth for Q2 but expects a negative impact from U.S. Dollar strength and U.S. Federal business contracts on its cRPO growth. Shares fell 4.91% after-hours.
April 24, 2024 | 8:45 pm
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ServiceNow exceeded Q1 earnings and revenue estimates, with significant year-over-year growth. However, shares dropped 4.91% after-hours due to concerns over Q2 guidance impacted by currency fluctuations and contract terms.
Despite ServiceNow's strong Q1 performance, the after-hours stock price decline reflects investor concerns over the company's Q2 outlook. The negative impact from currency fluctuations and specific contract terms on cRPO growth may have contributed to the pessimistic investor sentiment. The significant after-hours price movement indicates a direct correlation between the earnings report and investor expectations for future performance.
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IMPORTANCE 90
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