ServiceNow Raises Annual Subscription Revenue Forecast after Beating Q3 Profit Estimates
ServiceNow, the digital workflow software firm, has announced an increase in its annual subscription revenue forecast following better-than-expected profits in the third quarter. This positive outcome is largely attributed to the strong demand for the company’s automation and artificial intelligence (AI) services in an evolving market.
Enterprises are increasingly investing in generative AI products and workflow automation to establish themselves in the nascent AI market. As a result, companies like ServiceNow are benefiting from this upward trend. The capabilities offered by generative AI have expanded the window of opportunity for ServiceNow, positioning the company for continued growth and profitability.
Gina Mastantuono, the CFO of ServiceNow, emphasized the significance of generative AI and its impact on the company’s success. She stated, With the capabilities unlocked by generative AI, the window of opportunity is even more expansive, positioning us well to continue delivering a strong balance of growth and profitability.
ServiceNow now expects its full-year 2023 subscription revenues to reach as high as $8.64 billion, surpassing the previously anticipated range of $8.58 billion to $8.60 billion.
In the July-to-September quarter, ServiceNow reported an adjusted earnings per share of $2.92, surpassing the estimated $2.56 per share, according to LSEG data. Furthermore, the company’s quarterly revenue reached $2.29 billion, exceeding analysts’ expectations of $2.27 billion.
A significant contributor to this success was the substantial subscription revenue of $2.22 billion, outperforming the estimated $2.19 billion.
ServiceNow’s collaborations with prominent companies such as Nvidia and Accenture have further enhanced its growth trajectory.
Overall, ServiceNow’s impressive financial results and raised annual subscription revenue forecast highlight the company’s strong performance in the automation and AI market. With a focus on generative AI and workflow automation, ServiceNow is well-positioned to continue its growth and provide value to its clients.