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ServiceNow +5.5% as subscription growth drives Q1 beat

Published 04/26/2017, 05:18 PM
© Reuters.  ServiceNow +5.5% as subscription growth drives Q1 beat
NOW
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  • ServiceNow (NYSE:NOW) is up 5.5%, and quoting above its 52-week high, following the release of Q1 earnings where revenues jumped more than 36% and cleared Street expectations.
  • The company's diversifying its mix, says CEO John Donahoe: “Now 73% of all our customers license more than one product up from 50% two years ago."
  • Revenue breakout: Subscription, $376.1M (up 40.7%); Professional services and other, $40.65M (up 5.7%).
  • Gross profit in subscriptions was $305.8M, making up 81% of sub revenues. Professional services, meanwhile, lost $5.4M on gross basis.
  • Net cash from operations was $187.4M (45% of total revenues).
  • Q2 guidance is for revenues (non-GAAP) of $469M-$474M (above consensus for $450M) and total billings of $491M-$496M, or 31-32% Y/Y growth. For the full year, it sees total revenues of $1.86B-$1.88B (above expectations for $1.84B) and billings of $2.235B-$2.255B.
  • Press Release
  • Now read: The Most Durable Education Is Self-Education


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