In a recent announcement, ServiceNow revealed that its subscription revenue in the fourth quarter surpassed management’s expectations, leading to an increase in its guidance for this key financial metric.
The cloud-based platform reported a net profit of $295 million, or $1.43 per share. This represents significant growth compared to $150 million, or 74 cents per share, recorded during the same period last year. Analysts surveyed by FactSet had anticipated a profit of $238.8 million, or 96 cents per share.
Furthermore, ServiceNow achieved a remarkable 26% increase in total revenue, reaching $2.44 billion. This figure exceeded analysts’ expectations of $2.40 billion. Notably, subscription revenue experienced substantial growth of 27%, amounting to $2.37 billion. This result was in line with the company’s internal outlook, surpassing the projected range of $2.32 billion to $2.33 billion.
Looking ahead, ServiceNow has set its sights on an optimistic first quarter, anticipating subscription revenue between $2.51 billion and $2.52 billion. Moreover, the company projects closing the year 2024 with subscription revenue ranging from $10.56 billion to $10.58 billion. It is important to note that their previous guidance in October forecasted full-year subscription revenue of $8.635 billion to $8.640 billion.
ServiceNow’s exceptional performance reflects its strong market presence and ability to meet and exceed financial expectations. With its commitment to providing innovative cloud-based solutions, the company is well-positioned for continued success in the future.