ServiceNow as seen in the graph: subscription revenue for the second quarter continued to grow by about a quarter compared to the same period last year

Service Now (NYSE: NOW) surpassed sales and earnings per share expectations in its 2024 second quarter financial results announced after the market closed on Wednesday.

The software management company's second-quarter sales were 2.6 billion 27 million dollars, up 22% from the same period last year, and surpassed analysts' consensus of 2.6 billion 10 million dollars. Earnings per share were $3.13, which was higher than the forecast of $2.84.

Service Now closed at a 4.5% decline, but it rebounded 5.5% due to movements after the market started.

“As CEOs look for new vectors of growth, simplification, and digitalization, our relevance as an AI platform for business transformation remains stronger than ever,” said Bill McDermott, CEO of Service Now. “ServiceNow is going to revolutionize every workflow in every enterprise and every industry, with GenAI at its core.

ServiceNow also announced the resignation of President and Chief Operating Officer (COO) CJ Desai after completing an internal investigation into hiring Raj Iyer, the former chief intelligence officer of the US Army, as the global head of the public sector.

“As a result of the investigation, our board of directors determined that there was a violation of our policy regarding the recruitment of a former chief intelligence officer for the US Army. “As a result, this recruit, who has been leading public sector thought leadership and business development since March 2023, has left the company.

Currently, Chris Bedi, a long-term executive at ServiceNow, is serving as Chief Product Officer on an interim basis.

As an outlook for the future, ServiceNow expects subscription revenue for the third quarter to be 2.6 billion70 million dollars from 2.6 billion60 million dollars, which is slightly lower than the forecast of 2.6 billion80 million dollars. For the full year, it was revised upward by 33 million dollars, and 10.5 billion 85 million dollars (22% increase from the previous year) is expected from 10.5 billion 75 million dollars.

Prior to this, ServiceNow announced the acquisition of Raytion, which is headquartered in Germany, and will enhance generative search and knowledge management functions utilizing AI on the Now Platform.