Main to remember
- The ServiceNow actions landed 12% in intraday on Thursday, as the IT services and service provider posted a slower subscription income growth than expected earlier and projected a slight drop in growth in the first quarter.
- The company said that the profit adjusted to the fourth quarter higher than the fourth quarter and income in accordance with the estimates of the analysts interviewed by Visible Alpha.
- ServiceNow shares have jumped almost 50% in the past year to Wednesday.
The ServiceNow (now) actions landed 12% in intraday on Thursday, as the IT services and service provider posted slower subscription income than expected earlier and projected a slight drop in growth in the first quarter.
The company planned a turnover in the first quarter of 2025 between $ 2.995 billion and $ 3 billion, an increase of 18.5% to 19% in annual sliding.
This came after ServiceNow said that the fourth quarter turnover gained between $ 21% and $ 2.87 billion, below its own forecasts placed during the third quarter between 21.5% and 22% from one year to the next. The fourth quarter’s turnover also followed the consensual estimate of $ 2.88 billion by analysts interviewed by Visible Alpha.
The CEO McDermott sees huge gains from AI’s request
Otherwise, the results of the fourth quarter were mixed. A turnover of the fourth quarter of 2.96 billion dollars – in accordance with the estimates of the analysts interviewed by Visible Alpha – marked a 21% increase from one year to the next. The fourth quarter (BPA) adjusted profit of $ 3.67 also beat estimates of $ 3.65.
The company was optimistic about the prospects of its artificial intelligence platform (AI), with the chief executive (CEO) Bill McDermott saying that emerging technology “feeds a restart from the company’s technological landscape ยป.
ServiceNow said that it now has nearly 500 customers with $ 5 million contracts in value or an annual contract value per year. ServiceNow shares have increased by around 28% in the past year.
Update – Jan. 30, 2025: This article has been updated with new stock courses.
