ServiceNow Stock Surges On Q1 Earnings Beat: Company Says It's Positioned As The 'Platinum Standard' For Enterprise-Grade AI

ServiceNow Inc NOW reported first-quarter financial results Wednesday after the bell. Here’s a rundown of the software solutions company’s report.

Q1 Earnings: ServiceNow reported first-quarter revenue of $3.09 billion, beating the consensus estimate of $3.08 billion, according to Benzinga Pro. The company reported first-quarter adjusted earnings of $4.04 per share, beating analyst estimates of $3.84 per share.

Total revenue was up 18.5% year-over-year, while Subscription revenues climbed 19% year-over-year. ServiceNow said it had remaining performance obligations of $10.31 billion at quarter’s end, up 22% year-over-year. The company noted that it now has over 500 customers with more than $5 million in annual contract value.

“ServiceNow’s position as the platinum standard for enterprise-grade AI drove these outstanding first quarter results,” said Bill McDermott, chairman and CEO of ServiceNow.

“Our platform is delivering real business transformation to empower CEOs with speed and agility to lead through this fast-changing environment. ServiceNow is meeting the moment, driving immediate value creation for customers and shareholders.”

ServiceNow said it repurchased approximately 316,000 shares of its common stock in the quarter for $298 million. The company had approximately $3 billion remaining on its buyback at quarter’s end.

ServiceNow also noted that Paul Smith, president of global customer and field operations, decided to resign from his role at the company, effective on Wednesday. Smith will be replaced by Paul Flipps, who is a U.S. Army veteran and has a track record as a C-level technology leader.

ServiceNow has historically announced partnerships in connection with earnings. This quarter was no different. The company announced partnerships with Aptiv, Vodafone Business and Devoteam in multiple press releases issued just ahead of the report.

Looking Ahead: ServiceNow expects second-quarter subscription revenue of $3.03 billion to $3.035 billion. The company expects full-year subscription revenue of $12.64 billion to $12.68 billion, up slightly from prior guidance of $12.635 billion to $12.675 billion.

ServiceNow executives will talk about the quarter on a conference call scheduled for 5 p.m. ET.

NOW Price Action: ServiceNow shares were up 10.13% in the after-hours session, trading at $895 at the time of publication Wednesday, according to Benzinga Pro.

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