By Levi Sumagaysay
ServiceNow Inc. on Wednesday reported subscription and customer growth in the fourth quarter, saying it continued to help companies with their “digital transformations” as they navigate the COVID-19 pandemic.
“The pandemic is creating the greatest workflow challenges of our time, and ServiceNow /zigman2/quotes/202729495/composite NOW +1.14% is responding,” Chief Executive Bill McDermott said during the company’s earnings call.
From health care to financial services to the public sector, “I can’t find an industry not in the midst of a digital transformation,” McDermott said in an interview with MarketWatch.
The maker of workflow software said its subscription revenue rose 32% year over year, and that it now has more than 1,000 customers with more than $1 million in annual contract value, a 23% increase from the year-ago period.
Earlier this week, the company announced it is using its expertise to help manage vaccination workflows , including that of North Carolina’s Department of Health and Human Services.
“From distributing, managing inventory and caring for the vaccine, all kinds of people in the chain have to be involved,” McDermott told MarketWatch. “All of that is a workflow challenge.”
Shares of the Santa Clara, Calif.-based company rose 4.4% in the extended session Wednesday after falling 3% to end the regular session at $516.50.
ServiceNow reported fourth-quarter net income of $16.6 million, or 8 cents a share, a 97% drop from $598.7 million, or 3.03 a share, in the year-ago period. Adjusted earnings were $1.17 a share, adjusted for stock-based compensation and other charges.
Revenue rose to $1.25 billion from $951.8 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of $1.06 a share on revenue of $1.21 billion.
For the full year, the company reported $119 million in profit on $4.5 billion in revenue.
The company expects subscription revenues between $1.275 billion and $1.28 billion in the first quarter, Chief Financial Officer Gina Mastantuono said during the call.
ServiceNow shares have risen 75% in the past 52 weeks, but are down more than 3% so far this year. The S&P 500 Index /zigman2/quotes/210599714/realtime SPX +0.77% is up 2.6% so far this year.