ServiceNow (NYSE:NOW) rose Thursday after posting stronger-than-expected quarterly results and sharing solid subscription revenue expectations for the current period. ServiceNow posted earnings per share of $2.92 on $2.29 billion in revenue.
The software company reported subscription revenues of $2,216 million in Q3 2023, representing 27% year-over-year growth and 24.5% in constant currency.
“ServiceNow had another beyond expectations quarter,” said CEO Bill McDermott. “We've released more than 5,000 new capabilities this year, including generative AI for the use cases that matter most to our customers. Innovation drives growth. This is a highly unique, differentiated company that is reshaping business as the intelligent super platform for the enterprise.”
As of September 30, 2023, current remaining performance obligations (“cRPO”), contract revenue that will be recognized as revenue in the next 12 months, was $7.43 billion, representing 27% year-over-year growth and 24% in constant currency. The company now has 1,789 total customers with more than $1 million in annual contract value (“ACV”), representing 17% year-over-year growth in customers.
In Q3, ServiceNow launched its Vancouver Platform release, which embedded generative AI across all workflows on the Now Platform. Now Assist , ServiceNow’s generative AI experience, expands the company’s generative AI capabilities to further maximize productivity, improve agility, and drive cost efficiency. Now Assist incorporates previously announced generative AI features such as case, incident, and agent chat summarization , virtual agent , and search capabilities, as well as the Generative AI Controller.
NOW popped $45.24, or 8.5%, to $575.41.
