shares rose higher in late trading on Wednesday after workflow management software company reported better-than-expected second-quarter earnings.
ServiceNow (ticker: NOW), a maker of cloud-based management software, reported adjusted revenue of $1.41 billion, up 32% from a year ago, ahead of the Street consensus at $1.36 billion. the quarter. Subscription revenues were $1.33 billion, up 31%, and ahead of the guidance range from $1.29 billion to $1.295 billion.
Current remaining performance commitments, a measure of work to be completed within 12 months, increased 34% to $4.7 billion, better than the company’s projected growth of 30%. Non-GAAP earnings were $287 million, or $1.42 per share, above the consensus forecast of $1.21 per share. Under generally accepted accounting principles, or GAAP, the company made $59 million, or 29 cents per share.
For the September quarter, the company expects subscription revenues of $1.4 billion to $1.405 billion, up between 28% and 29%, and ahead of Street’s consensus forecast of $1.386 billion. The company sees subscription bills in the quarter from $1.32 billion to $1.325 billion, again slightly ahead of the Street at $1.305 billion, and roughly in line with the $1.33 billion recorded in the June quarter.
For the full year, ServiceNow forecasts revenue of $5.53 billion to $5.54 billion, a 29% increase. That’s an increase from the previously expected range of $5.455 billion to $5.47 billion. ServiceNow now sees full-year subscription bills ranging from $6.315 billion to $6.325 billion, up 27%, and above the previous forecast range of $6.19 billion to $6.205 billion.
ServiceNow CFO Gina Mastantuono said in a statement that the company had “a great quarter,” balancing growth and profitability. She said the company saw “strong demand across all regions and workflows”.
In late trading, ServiceNow shares are up 1.1% to $590.
Write to Eric J. Savitz at firstname.lastname@example.org