Categories AlphaGraphs, Analysis, Technology

ServiceNow likely to deliver another blowout quarter on Wednesday

ServiceNow (NYSE: NOW) is slated to report second-quarter financial results after the regular trading hours on Wednesday, July 24. Analysts expect the software-as-a-service cloud company to report earnings of 63 cents per share, compared to 49 cents per share it reported a year ago.

Revenues are projected to jump 32% to $832.37 million, helped by the robust demand for its enterprise products and high renewal rates. In the first quarter, the company boasted of a 98% renewal rate, suggesting high customer satisfaction in the products.

servicenow revenue trend

Wall Street loves the stock too. In the trailing 52 weeks, the stock has gained 53%, outperforming most of its peers, on the back of better-than-expected quarterly results. In the past five years, the stock has increased almost five times.

The Santa Clara, California-based firm has also benefitted from a large chunk of companies shifting their operations to cloud-based infrastructure, driving demand for its subscription products and solutions.

For the second quarter, the management expects adjusted subscription billings to grow 32-33% year-over-year.

Customers, contracts and deals

CEO John Donahoe had earlier said that ServiceNow is committed to expanding its customer base across 75% of the Fortune 500 companies. At the end of the last reported quarter, its customer base exceeded 5,400.

READ: Microsoft leads the enterprise SaaS industry, grows quickly

In the second quarter, the company continued to build on its profile by signing major partnerships and contracts, which further add confidence in the stock. It extended its partnership with Microsoft Corp. (NASDAQ: MSFT) to optimize its products and cloud capabilities, besides acquiring Israel-based Appsee, a mobile app analytics platform.  

Separately, ServiceNow boasts of six federal customers with a total annual contract value of over $10 million.

The stock has a 12-month average price target of $295, which is at a 2.4% upside from Tuesday’s trading price.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Virgin Galactic stock tanks on delayed test flight

Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top