ServiceNow Soars on Strong Fourth-Quarter Earnings
Business information technology company ServiceNow Inc. (NOW) - Get Report rose by 13.4% to $220.05 by the close of trading on Thursday, Jan. 31, after releasing strong earnings for the fourth quarter and year.
Posting fourth-quarter adjusted diluted earnings per share of 77 cents, ServiceNow beat Zacks Consensus Estimate of 64 cents. The results were also a dramatic rise from the same quarter a year prior when ServiceNow posted 43 cents per share of adjusted diluted earnings.
Total revenue for the quarter was also up by 30% year-over-year to $715.4 million, missing Zacks' estimate by about $1 million.
Revenue adjusted for currency exchanges and other costs, however, rose to nearly $724 million for the quarter that ended Dec. 31.
For the whole year, total non-adjusted revenues hit $2.6 billion, up from $1.92 billion in 2017. Adjusted revenues were just slightly lower at about $2.58 billion.
The company expects adjusted subscription revenues to rise by up to 36% over the first quarter of 2019 and up to 35% over the year.
"We finished 2018 with our strongest fourth quarter ever," said John Donahoe, ServiceNow's chief executive in a statement, adding that he expects "another strong year of growth in 2019."
ServiceNow says it has more than 5,000 business customers such as Siemens, Raymond James and Adidas that use its products to digitize materials and services.
