ServiceNow Inc (NYSE:NOW, XETRA:4S0) forecast third-quarter results above Wall Street expectations and posted second-quarter earnings that beat analyst estimates.
The company reported second-quarter subscription revenue of $3.88 billion, up 24.5% from a year earlier, while total revenue reached $3.99 billion, ahead of analyst estimates of $3.92 billion
Adjusted earnings per share came in at $0.90, topping estimates of $0.86. Current remaining performance obligations (cRPO), a closely watched bookings metric, rose 21% year-over-year to $13.20 billion, above estimates of roughly $13.03 billion. For the third quarter, ServiceNow guided subscription revenue of $3.975 billion to $3.98 billion and cRPO growth of 19.5% year-over-year, ahead of analyst estimates of 18% to 19% growth.
The company raised its full-year subscription revenue guidance to a range of $15.76 billion to $15.78 billion, representing growth of 22.5% year-over-year. It maintained its outlook for subscription gross margin of 81%, operating margin of 31.5% and free cash flow margin of 35%. ServiceNow said its artificial intelligence business surpassed $1 billion in annual contract value during the quarter, as the company continues to expand its AI product offerings.