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Strong sales growth calms nervous ServiceNow investors
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ServiceNow Inc. today reported second-quarter revenue of $1.41 billion, well above analysts’ estimates of $1.36 billion and up 32% year-over-year.
Profit of $1.42 per share also exceeded the $1.21 consensus.
The results were driven by 27% growth in subscription revenues, to $1.33 billion when adjusted for constant currency. Current remaining performance obligations, which is contract revenue that will be recognized as revenue over the next 12 months, rose 31%, to $4.7 billion.
The company said it now has 1,201 total customers paying more than $1 million annually, up 25% year-over-year, with 62 paying more than $10 million. “The pipeline is incredibly robust,” said Chief Executive Bill McDermott.