ServiceNow raises annual forecast after AI-driven bookings surge

ServiceNow Inc (NYSE:NOW, XETRA:4S0) forecast third-quarter results supra Wall Street expectations and posted second-quarter net that bushed expert estimates.

The institution reported second-quarter subscription gross of $3.88 billion, up 24.5% from a twelvemonth earlier, portion full gross reached $3.99 billion, up of expert estimates of $3.92 billion.

Adjusted net per stock came successful astatine $0.90, topping estimates of $0.86.

Current remaining show obligations (cRPO), a intimately watched bookings metric, roseate 21% year-over-year to $13.20 billion, supra estimates of astir $13.03 billion.

For the 3rd quarter, ServiceNow guided subscription gross of $3.975 cardinal to $3.98 cardinal and cRPO maturation of 19.5% year-over-year, up of expert estimates of 18% to 19% growth.

The institution raised its full-year subscription gross guidance to a scope of $15.76 cardinal to $15.78 billion, representing maturation of 22.5% year-over-year. It maintained its outlook for subscription gross borderline of 81%, operating borderline of 31.5% and escaped currency travel borderline of 35%.

ServiceNow said its artificial quality concern surpassed $1 cardinal successful yearly declaration worth during the quarter, arsenic the institution continues to grow its AI merchandise offerings.

The institution besides reported 658 customers with much than $5 cardinal successful yearly declaration value, up 23% from a twelvemonth earlier, and 123 transactions exceeding $1 cardinal successful yearly declaration value, up astir 40%.

Adjusted operating borderline was 29.5%, supra estimates of 26.5% and level year-over-year. Free currency travel totaled $634 million, a 16% margin, beneath estimates of $679 million.

Shares fluctuated astir the flatline connected Thursday, adding a humble 0.5% to its opening levels.