ServiceNow delivers strong Q2, ups subscription revenue outlook

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Larry Dignan

By

Larry Dignan

for Between the Lines

| July 28, 2021 — 20:26 GMT (21:26 BST)

| Topic: Cloud

ServiceNow reported better-than-expected second quarter results and raised its outlook for the third quarter.

The company reported second quarter revenue of $1.41 billion, up 27% from a year ago. ServiceNow’s second quarter net income was $59 million, or 29 cents a share. Non-GAAP earnings for the quarter were $1.42 a share.

Wall Street was expecting ServiceNow to report second quarter revenue of $1.36 billion with non-GAAP earnings of $1.22 a share.

More:

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ServiceNow ended the quarter with 1,201 customers with more than $1 million in contract value, up 25% from a year ago. Subscription revenue was $1.33 billion. CEO Bill McDermott said ServiceNow has seen strong demand as companies retool their workflows as they go digital. ServiceNow CFO Gina Mastantuono said the company saw strong demand across all products and geographies.

As for the outlook, ServiceNow projected third quarter subscription revenue of $1.4 billion to $1.405 billion, or growth of 28% to 29%. For 2021, ServiceNow is projecting subscription revenue of $5.53 billion to $5.54 billion.

ServiceNow has been able to sell its Now Platform across more use cases and workflows.

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Larry Dignan

By

Larry Dignan

for Between the Lines

| July 28, 2021 — 20:26 GMT (21:26 BST)

| Topic: Cloud