ServiceNow shares were inching higher in late trading Wednesday after the workflow management software company reported better-than-expected second-quarter profits.
ServiceNow (ticker: NOW), a maker of cloud-based management software, reported adjusted revenue of $1.41 billion, up 32% from a year ago, and ahead of the Street consensus at $1.36 billion for the quarter. Subscription revenue was $1.33 billion, up 31%, and ahead of the guidance range of $1.29 billion to $1.295 billion.
Current remaining performance obligations, a measure of work to be completed within 12 months, was up 34% to $4.7 billion, better than the company’s projected growth rate of 30%. Non-GAAP profits were $287 million, or $1.42 a share, above the consensus forecast of $1.21 a share. Under generally accepted accounting principles, or GAAP, the company earned $59 million, or 29 cents a share.
For the September quarter, the company sees subscription revenue of $1.4 billion to $1.405 billion, up between 28% and 29%, and ahead of the Street consensus forecast at $1.386 billion. The company sees subscription billings in the quarter of $1.32 billion to $1.325 billion, again slightly ahead of the Street at $1.305 billion, and about in line with the $1.33 billion recorded in the June quarter.
For the full year, ServiceNow projects revenue of $5.53 billion to $5.54 billion, up 29%. That’s an increase from the previously projected range of $5.455 billion to $5.47 billion. ServiceNow now sees full-year subscription billings ranging from $6.315 billion to $6.325 billion, up 27%, and above its previous forecast range of $6.19 billion to $6.205 billion.
ServiceNow CFO Gina Mastantuono said in a statement that the company had “a tremendous quarter,” driving a balance of growth and profitability. She said the company saw “strong demand across all regions and workflows.”
In late trading, ServiceNow shares have gained 1.1%, to $590.
Write to Eric J. Savitz at [email protected]
