Why ServiceNow shares are slipping after hours
Shares of ServiceNow Inc NOW are trading lower on Wednesday after the software company released fourth quarter financial results.
What happened: ServiceNow said fourth-quarter revenue jumped 20% year-on-year to $1.94 billion, in line with average analyst estimates, according to Benzinga Pro. Subscription revenue was $1.86 billion, representing 22% year-over-year growth. The company said it saw a spike in new business during the fourth quarter.
ServiceNow posted fourth quarter earnings of $2.28 per share, beating consensus estimates of $2.02 per share.
The company noted that its quarterly results were generated with a weaker mix of renewals anticipated from 2023, providing more opportunities to drive further expansion throughout the year.
"ServiceNow continues to perform as a business beyond expectations. Our increase in new business in the fourth quarter shows that the age-old tailwinds of digitization are not going anywhere," said said Bill McDermott, president and CEO of ServiceNow. .
ServiceNow said it expects first-quarter subscription revenue to be between $1.99 billion and $2 billion, representing growth 22% to 22.5% year over year. The company forecasts full-year 2023 subscription revenue in the range of $8.44 billion to $8.5 billion, representing 22.5% to 23.5% year-on-year growth on the other.
A conference call to discuss these results is scheduled to begin at 5:00 p.m. HE.
See also: After hours alert: why IBM stocks are moving
NOW Price Action: ServiceNow has a 52-week high of $621.41 and a 52-week low of $337.
The stock was down 5.32% to $424.65 at the time of writing, according to Benzinga Pro.
Photo:Donny Gonzo on Flickr.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Shares of ServiceNow Inc NOW are trading lower on Wednesday after the software company released fourth quarter financial results.
What happened: ServiceNow said fourth-quarter revenue jumped 20% year-on-year to $1.94 billion, in line with average analyst estimates, according to Benzinga Pro. Subscription revenue was $1.86 billion, representing 22% year-over-year growth. The company said it saw a spike in new business during the fourth quarter.
ServiceNow posted fourth quarter earnings of $2.28 per share, beating consensus estimates of $2.02 per share.
The company noted that its quarterly results were generated with a weaker mix of renewals anticipated from 2023, providing more opportunities to drive further expansion throughout the year.
"ServiceNow continues to perform as a business beyond expectations. Our increase in new business in the fourth quarter shows that the age-old tailwinds of digitization are not going anywhere," said said Bill McDermott, president and CEO of ServiceNow. .
ServiceNow said it expects first-quarter subscription revenue to be between $1.99 billion and $2 billion, representing growth 22% to 22.5% year over year. The company forecasts full-year 2023 subscription revenue in the range of $8.44 billion to $8.5 billion, representing 22.5% to 23.5% year-on-year growth on the other.
A conference call to discuss these results is scheduled to begin at 5:00 p.m. HE.
See also: After hours alert: why IBM stocks are moving
NOW Price Action: ServiceNow has a 52-week high of $621.41 and a 52-week low of $337.
The stock was down 5.32% to $424.65 at the time of writing, according to Benzinga Pro.
Photo:Donny Gonzo on Flickr.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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