ServiceNow reported fourth-quarter earnings and revenue that topped Wall Street estimates as other key financial metrics for NOW stock also came in above views.
Reported after the market close on Wednesday, ServiceNow said earnings for the quarter ending Dec. 31 popped 36% to $3.11 per share from the year-earlier period.
Revenue rose 26% to $2.44 billion, the Santa Clara, Calif-based enterprise software maker said.
NOW stock analysts had expected the company to report earnings of $2.78 a share on revenue of $2.4 billion.
In addition, ServiceNow said subscription revenue rose 27% to $$2.37 billion, topping the consensus estimate of $2.32 billion.
NOW Stock: Subscription Revenue Outlook
ServiceNow's current remaining performance obligations, or CRPO, came in above expectations. CRPO rose 24% to $8.6 billion. Analysts had projected CRPO of $8.37 billion.
CRPO bookings are an aggregate of deferred revenue and order backlog and serve as a sales growth metric.
"Despite all the excitement and attention that ServiceNow's gen AI solutions are getting, performance of its core is also very strong despite continued macro headwinds," said William Blair analyst Arjun Bhatia in a report. "Beats on cRPO and subscription revenue were driven by solid performance in the public sector, accelerating large new logo traction, and broad-based strength across all workflows."
For full-year 2024, ServiceNow predicted subscription revenue in a range of $10.55 billion to $10.57 billion vs. estimates of $10.5 billion.
On the stock market today, NOW stock edged up 0.4% to close at 766.69.
ServiceNow Stock: Top Software Performer
During the quarter, ServiceNow repurchased $256 million of its own stock. The software giant has $962 million remaining in a share repurchase program.
Heading into the ServiceNow earnings report, the software stock had gained 6% in 2024 and 69% over the past 52 weeks.
The company's software tracks and manages services provided by information-technology departments. Also, its self-service tech portal enables company employees to access administrative and workflow tools.
Further, ServiceNow has expanded from its core business into software for human resources, customer service management and security.
Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
