Core Insights - NowVertical Group Inc. has successfully negotiated a deferral of USD $998,000 in outstanding liabilities with the sellers of Affinio Inc., demonstrating confidence in its strategic direction [1][2] - The deferral allows NowVertical to focus on its organic growth initiatives, aiming for a revenue run rate of USD $50 million and a 20% EBITDA margin [2] Company Overview - NowVertical is a global data and analytics company that transforms data into business value using AI, offering a comprehensive suite of solutions and services [3] - The company is focused on organic growth and strategic acquisitions to enhance its market position and drive measurable outcomes for clients [3]

Investment Rating - The report maintains a "BUY" rating for ServiceNow, indicating a potential return of over 15% over the next 12 months [18]. Core Insights - ServiceNow reported 4Q24 results with total revenue increasing by 21% YoY to US$2.96 billion, and non-GAAP operating profit growing by 22% YoY to US$872 million, both in line with consensus estimates [1]. - For FY25, management guides subscription revenue to increase by 19.5-20% YoY on a constant currency basis, slightly below the consensus estimate of 20.5% YoY [1]. - The target price has been raised to US$1,220 based on a 55x FY25E EV/EBITDA, up from a previous target of US$1,075 at 48x FY25 EV/EBITDA [1][11]. Financial Performance - FY24 total revenue was up by 22% YoY to US$10.98 billion, with non-GAAP operating profit margin (OPM) increasing by 1.9 percentage points YoY to 29.6% [1]. - The adjusted net profit for FY24 was US$2.90 billion, reflecting a YoY growth of 31% [2]. - The forecast for FY25E total revenue is US$13.04 billion, with a projected YoY growth of 21.1% [2]. Market Position and Growth Drivers - ServiceNow is expected to benefit from growing enterprise demand for digitalization and agentic AI, with significant growth in large deals [1]. - The number of customers generating over US$1 million and US$20 million in annual contract value grew by 12% and 35% YoY, respectively, in 4Q24 [8]. - Management reported a 150% QoQ growth in Now Assist deals, indicating strong momentum in AI adoption [8]. Valuation Metrics - The current market capitalization of ServiceNow is approximately US$211.82 billion [3]. - The stock is currently trading at a price of US$1,018.38, with an upside potential of 19.8% to the target price of US$1,220 [3]. - The P/E ratio for FY25E is projected at 120.8x, which is a premium compared to the sector average [2][11].

I recently joined The REIT Forum and if you are looking for more investment ideas like this one, get them exclusively at The REIT Forum with access to our subscriber only portfolios.I last wrote about ServiceNow (NYSE: NOW ), where I laid out a possible bullish path for the stock to reach over $1300, but maintained my “hold” rating.Amrita runs a boutique family office fund in beautiful Vancouver, where she leads the investment strategy for the family fund. The fund's objective is to invest capital in sustai ...

With earnings season kicking off in full swing, so far, the big theme shaping popular tech stocks is that even good earnings aren't enough to sustain recent rallies. Growth stocks are priced for perfection, and investors are punishing stocks as revenue decelerationWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. ...

Study a company’s revenues over a period and deduct production costs to find earnings, which is crucial for any organization’s survival. Irrespective of whether it is a start-up or a well-known company, earnings growth is the top priority for any organization. This is because if the company doesn’t make money, it won’t survive.Earnings are also considered the most important variable influencing share price. However, expectations of earnings play a prominent role.Nonetheless, stocks such as ServiceNow, Inc. ...

ServiceNow (NOW -11.82%) stock is seeing big sell-offs in Thursday's trading. The software company's share price was down 11.3% as of 3:30 p.m. ET and had been down as much as 13.5% earlier in the day's trading.After the market closed yesterday, ServiceNow published its fourth-quarter results. Despite sales for the period being in line with Wall Street's expectations and earnings beating the average target, relatively disappointing forward guidance is causing the the stock to sink today.ServiceNow stock slu ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

Core Insights - ServiceNow (NOW) reported fourth-quarter 2024 adjusted earnings of $3.67 per share, exceeding the Zacks Consensus Estimate by 2.51% and reflecting an 18% year-over-year increase [1] - Revenues reached $2.957 billion, surpassing the consensus mark by 0.13% and showing a 21.3% year-over-year growth [2] - Subscription revenues for 2024 totaled $10.639 billion, up 22.5% from 2023, but the forecast for 2025 subscription revenue growth is now expected to be between 19.5% and 20% [2][10] Financial Performance - Subscription revenues improved 21.2% year over year to $2.866 billion, with a constant currency increase of 21% [3] - Professional services and other revenues rose 26% year over year to $91 million [3] - The current remaining performance obligations (cRPO) were $10.49 billion, up 22% year over year on a constant currency basis [4] Margins and Expenses - Non-GAAP gross margin for the third quarter was 82.6%, an increase of 60 basis points year over year [5] - Subscription gross margin was 84.9%, also up 60 basis points year over year [5] - Operating expenses as a percentage of revenues decreased by 170 basis points year over year to 66% [5] Customer Growth and Product Demand - ServiceNow had 2,109 total customers with over $1 million in annual contract value (ACV), representing a 14% year-over-year growth [6] - The company closed 19 deals greater than $5 million in net new ACV during the reported quarter [6] - The Pro Plus AI product saw a 150% sequential growth, with the number of customers purchasing multiple GenAI capabilities doubling quarter-over-quarter [7] Industry Performance - Manufacturing and public sector industries grew by 50% and 40% year over year, respectively [8] - ServiceNow's renewal rate remained strong at 98% [8] Liquidity Position - As of December 31, 2024, ServiceNow had cash and cash equivalents of $5.762 billion, an increase from $5.295 billion as of September 30, 2024 [9] - The company generated a free cash flow of $1.40 billion in the reported quarter, up from $471 million in the previous quarter [9] Future Outlook - For 2025, ServiceNow expects subscription revenues to be between $12.635 billion and $12.675 billion, indicating an 18.5% to 19% increase from 2024 [10] - The non-GAAP operating margin is projected to be 30.5% for 2025 [10] - For the first quarter of 2025, subscription revenues are expected to be between $2.995 billion and $3 billion, suggesting an 18.5% to 19% year-over-year improvement [11]

SUN VALLEY, IDAHO - JULY 14: Bill McDermott, CEO of ServiceNow, walks to a morning session at the ... [+] Allen & Company Sun Valley Conference on July 14, 2023 in Sun Valley, Idaho. Every July, some of the world's most wealthy and powerful figures from the media, finance, technology and political spheres converge at the Sun Valley Resort for the exclusive weeklong conference. (Photo by Kevin Dietsch/Getty Images)Getty ImagesThe stock market imposes a pitiless logic: Unless a public company exceeds investor ...

KEY TAKEAWAYSShares of ServiceNow are tanking 9% in premarket trading Thursday, as the software and IT services provider posted slower subscription revenue growth than it had forecast earlier and projected a slight decline in first-quarter growth.The company reported higher-than-estimated fourth-quarter adjusted earnings per share and revenue in line with estimates from analysts polled by Visible Alpha.ServiceNow shares have surged almost 50% in the past year through Wednesday. Shares of ServiceNow (NOW) ar ...