Why ServiceNow Shares Are Sliding After Hours

ServiceNow Inc NOW shares are trading lower Wednesday after the software company reported fourth-quarter financial results. 

What Happened: ServiceNow said fourth-quarter revenue jumped 20% year-over-year to $1.94 billion, in line with average analyst estimates, according to Benzinga Pro. Subscription revenues came in at $1.86 billion, representing 22% growth year-over-year. The company said it saw a spike in new business during the fourth quarter. 

ServiceNow reported fourth-quarter earnings of $2.28 per share, which topped consensus estimates of $2.02 per share.

The company noted that its quarterly results were generated with a lower mix of early renewals from 2023, providing more opportunities to drive further expansion throughout the year. 

"ServiceNow continues to perform as a beyond expectations company. Our Q4 surge in new business shows that the secular tailwinds of digitization aren't going anywhere," said Bill McDermott, chairman and CEO of ServiceNow.

ServiceNow said it expects first-quarter subscription revenues to be between $1.99 billion and $2 billion, representing 22% to 22.5% growth year-over-year. The company sees full-year 2023 subscription revenues in a range of $8.44 billion to $8.5 billion, representing 22.5% to 23.5% growth on a year-over-year basis.

A conference call to discuss these results is set to kick off at 5 p.m. ET.

See Also: After-Hours Alert: Why IBM Stock Is Moving

NOW Price Action: ServiceNow has a 52-week high of $621.41 and a 52-week low of $337.

The stock was down 5.32% at $424.65 at the time of writing, according to Benzinga Pro.

Photo: Donny Gonzo from Flickr.