By Levi Sumagaysay
Citing “strong demand across all regions and workflows,” ServiceNow Inc. on Wednesday reported quarterly results that beat expectations.
The Silicon Valley-based maker of workflow software reported second-quarter net income of $59 million, or 29 cents a share, compared with $41 million, or 20 cents a share, in the year-ago period. Adjusted for stock-based compensation, depreciation and amortization and other costs, earnings were $1.42 a share. Revenue rose to $1.4 billion from $1.1 billion in the year-ago quarter, with subscription revenue increasing 31% year over year to $1.33 billion.
Analysts surveyed by FactSet had forecast earnings of $1.21 a share on revenue of $1.36 billion.
The company also reported a 25% increase year over year in the number of customers with more than $1 million in annual contract value.
“We are the platform for digital business, and we are well on our way to becoming a $15+ billion revenue company,” said ServiceNow (NYS:NOW) Chief Financial Officer Gina Mastantuono in a news release.
“ServiceNow is the control tower for digital transformation for every business in every industry,” said Chief Executive Bill McDermott on the company’s earnings call.
ServiceNow expects third-quarter subscription revenue of $1.4 billion to $1.405 billion. Analysts had forecast subscription revenue of $1.39 billion and overall revenue of $1.45 billion.
The company also raised its full-year guidance for subscription revenue to between $5.53 billion and $5.54 billion, above analysts’ forecast of $5.47 billion for subscription sales.
ServiceNow shares fell about 0.6% after hours, after rising nearly 0.2% in the regular session to close at $583.35.
ServiceNow shares are up almost 6% year to date, and have risen about 34% in the past 52 weeks. By comparison, the S&P 500 Index (S&P:SPX) has climbed more than 17% so far this year, and 35% in the past year.