ServiceNow (NOW) has reported better-than-expected fourth-quarter financial results, helped by demand for artificial intelligence (A.I.) products.
The software company that specializes in workflow-management reported earnings per share (EPS) of $3.11 U.S., which beat analyst expectations of $2.78 U.S.
Revenue in the quarter was $2.437 billion U.S., up 26% from a year earlier and above Wall Street forecasts of $2.402 billion U.S.
The company said that its latest earnings were given a boost by the rollout of A.I. software.
In terms of forward guidance, ServiceNow said it expects subscription revenue ranging from $2.510 billion U.S. to $2.515 billion U.S. in the current first quarter of 2024, ahead of the $2.461 billion U.S. expected by analysts.
For all of 2024, ServiceNow is projecting subscription revenues of between $10.555 billion U.S. and $10.575 billion U.S., up between 21.5% and 22%.
ServiceNow said that it has adopted 15 separate generative A.I. tools and is achieving 40% productivity gains as a result.
The stock of ServiceNow is up 1% in premarket trading on news of the Q4 results. Prior to today, the company’s share price had risen 70% over the last 12 months to trade at $763.42 U.S.
