Shares of ServiceNow (NOW) - Get ServiceNow, Inc. Report climbed 7.6% to $261.23 Thursday after the cloud computing company beat Wall Street's first-quarter earnings expectations and raised its revenue guidance.
The Santa Clara, Calif-based company reported adjusted earnings of 67 cents a share, up about 20% from a year ago, and beat analysts' forecasts of 54 cents a share. Revenue totaled $789 million, up 34% from a year ago. Wall Street was looking for $766.2 million.
ServiceNow reported earnings of 56 cents a share and sales of $589 million a year ago.
Chief Financial Officer Michael Scarpelli said "our U.S. federal business highlighted the quarter, representing 15% of our total net new ACV, up from 6% in the prior year."
Subscription revenue totaled $740 million up 36% year over year.
Subscription billings were $810 million, up 33% year-over-year adjusted growth. Revenue and billings performance was driven by strong bookings in the Americas, the company said, accelerated revenue recognition from self-hosted deals related to the company's federal business drove revenue outperformance.
"The first quarter represented a strong start to the new year, as we continued the momentum from our outstanding 2018 performance," said John Donahoe, ServiceNow president and chief executive officer. "Our performance shows the strength of our product and platform portfolio, and the core strategic partner role we are playing in enabling digital transformation for large public sector agencies, Fortune 500 companies and leading global enterprises."
ServiceNow raised its full-year 2019 subscription revenue guidance to between $3.235 billion and $3.25 billion, 35% to 36% year-over-year adjusted growth. The company also raised its 2019 subscription billings guidance to between $3.725 billion and $3.740 billion, representing 32% year-over-year adjusted growth.