ServiceNow (NYSE:NOW) reported fourth-quarter results and guidance that exceeded analyst expectations.
Shares rose 0.7% on the news.
Adjusted earnings per share (EPS) were $3.11, surpassing the estimated $2.78, while adjusted revenue reached $2.40 billion compared to the estimated $2.40 billion.
Subscription revenue amounted to $2.37 billion, surpassing the estimated $2.32 billion, and representing a 27% annual increase.
The company said it achieved an adjusted gross profit of $2.01 billion, exceeding the estimated $1.94 billion, with an adjusted gross margin of 82% compared to the consensus of 80.6%.
“ServiceNow closed out the year with another outstanding quarter,” said ServiceNow Chairman and CEO Bill McDermott.
“Generative AI is injecting new fuel into our already high-performing engine. ServiceNow’s intelligent platform for end-to-end digital transformation is driving massive leaps in productivity and explosive growth. This is a breakthrough moment.”
Looking forward, the first-quarter forecast for subscription revenue is expected to be between $2.51 billion and $2.52 billion. Analysts were looking for $2.46 billion.
For the year, ServiceNow projects a subscription revenue of $10.56 billion to $10.58 billion, better than the expected $10.46 billion.