ServiceNow Inc (NYSE:NOW) reported financial results for the second quarter Wednesday after the bell. Here's a rundown of the report.
Q2 Earnings: ServiceNow reported second-quarter revenue of $2.627 billion, beating the consensus estimate of $2.607 billion, according to Benzinga Pro. The company reported quarterly earnings of $3.13 per share, beating analyst estimates of $2.84 per share.
Total revenue was up 22% on a year-over-year basis. Subscription revenues were up 23% year-over-year. ServiceNow said it had remaining performance obligations of $18.6 billion, up 31% year-over-year.
"ServiceNow's elite-level execution is reflected in our continued outperformance across all topline growth and profitability metrics," said Bill McDermott, chairman and CEO of ServiceNow.
"Our relevance as the AI platform for business transformation remains stronger than ever as CEOs are looking for new vectors of growth, simplification, and digitization. ServiceNow intends to reinvent every workflow, in every company, in every industry with GenAI at the core."
Outlook: ServiceNow expects third-quarter subscription revenue of $2.66 billion to $2.665 billion, representing growth of 20% to 20.5% on a year-over-year basis. The company also guided for a third-quarter operating margin of 29.5%.
ServiceNow sees full-year 2024 subscription revenue in the range of $10.575 billion and $10.585 billion.
Management will hold a conference call to discuss ServiceNow's second-quarter results at 5 p.m. ET.
ServiceNow also announced a strategic commitment to jointly elevate customer experiences through AI-powered self-service with Boomi. The company further announced that it will make a strategic investment in Prodapt, a leading provider of digital and network services for the telecom and technology industries.
Leadership Changes: ServiceNow also announced that it reached a mutual agreement with president and COO CJ Desai under which Desai will resign from all positions with the company, effective immediately.
ServiceNow also said it completed an internal investigation related to the hiring of the former chief information officer of the U.S. Army. The company's board determined that a company policy was violated during the hiring process. As a result, the individual has departed the company.
ServiceNow appointed Chris Bedi as interim chief product officer, effective immediately. Bedi has been at ServiceNow for nearly a decade. Previous roles included chief digital information officer and chief customer officer.
NOW Price Action: ServiceNow shares were up 6.17% after hours at $776 at the time of publication Wednesday, according to Benzinga Pro.
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