The cloud software company is cranking out 20%-plus growth like clockwork, but the stock has already priced in a lot of AI hype.In May 2023, cloud and artificial intelligence (AI) software provider ServiceNow (NOW 3.01%) laid out its roadmap for scaling its subscription business from $8.5 billion a year to over $15 billion by 2026. Since then, AI has gone from early hype to a legitimate driver of business growth. The problem is, ServiceNow stock has soared some 60% in the last 12 months, pricing in a large ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, it's pretty easy to find cutting-edge growth stocks wit ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about ServiceNow (NOW) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.ServiceNow currently has an average brokerage recommendation ( ...

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Shares of the IT giant pulled back on disappointing guidance.Shares of ServiceNow (NOW -5.25%) were moving lower today after the software-as-a-service company beat estimates in its first-quarter earnings report but offered revenue guidance for the full year that was slightly below analyst expectations. Additionally, there may be concerns about its valuation getting stretched after the stock had run up in the last several months, so it was easy for a slight miss to prompt a sell-off. As a result, the stock w ...

ServiceNow (NOW) reported first-quarter 2024 adjusted earnings of $3.41 per share, which beat the Zacks Consensus Estimate by 8.25% and jumped 44% year over year.Revenues of $2.60 billion beat the consensus mark by 0.62% and increased 24.2% year over year. At constant currency (cc), revenues increased 24% year over year to $2.597 billion.Subscription revenues improved 24.7% year over year to $2.52 billion. At cc, subscription revenues increased 24.5% year over year, 50 basis points (bps) above the high end ...

Aavenir, a ServiceNow Advanced Platform partner, will unveil its latest Generative AI-powered contract lifecycle management solution at ServiceNow KNOWLEDGE24 in Las Vegas. Legal, procurement, and IT team attendees from across the globe will also witness Avy AI – Aavenir's Generative AI Assistant for contract management Live-in Action, as it marks its debut at KNOW24.   SANTA CLARA, Calif., April 25, 2024 /PRNewswire/ --  Aavenir, a global AI-Powered Source-to-Pay and Contract Lifecycle Management solutions ...

SUN VALLEY, IDAHO - JULY 07: CEO of ServiceNow Bill McDermott waves as he walks to lunch at the ... [+] Allen & Company Sun Valley Conference on July 07, 2021 in Sun Valley, Idaho. After a year hiatus due to the COVID-19 pandemic, the world’s most wealthy and powerful businesspeople from the media, finance, and technology worlds will converge at the Sun Valley Resort for the exclusive week-long conference. (Photo by Kevin Dietsch/Getty Images)Getty ImagesIf CEOs want their stock price to go up, their compan ...

ServiceNow (NOW) reported $2.6 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 24.2%. EPS of $3.41 for the same period compares to $2.37 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $2.59 billion, representing a surprise of +0.62%. The company delivered an EPS surprise of +8.25%, with the consensus EPS estimate being $3.15.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how t ...

Financial Data and Key Metrics Changes - Subscription revenue for Q1 2024 was $2.523 billion, growing 24.5% year-over-year in constant currency, exceeding guidance by approximately 50 basis points [50][39] - Current Remaining Performance Obligations (RPO) was $8.45 billion, representing 21% year-over-year constant currency growth, beating guidance by 100 basis points [23][11] - Non-GAAP operating margin was over 30%, approximately 150 basis points above guidance, with free cash flow margin at 47%, up 12 points year-over-year [25][22] Business Line Data and Key Metrics Changes - IT Service Management (ITSM) and IT Operations Management (ITOM) were included in 16 of the top 20 deals, while Security and Risk were in 11 of the top 20 [4][11] - The number of customers paying over $1 million in Annual Contract Value (ACV) reached 1,933, with those paying $20 million or more growing over 50% year-over-year [24][50] - Gen AI products were in seven of the top 10 deals, indicating strong adoption [52][40] Market Data and Key Metrics Changes - The public sector showed strong performance globally, with significant transactions from the government of Australia and Italy [13][14] - The technology, media, and telecom sectors saw over 100% year-over-year growth in net new ACV, while education grew nearly 50% year-over-year [23][22] Company Strategy and Development Direction - The company is positioning itself as the AI platform for business transformation, emphasizing the importance of Gen AI in driving productivity and efficiency [4][15] - There is a focus on expanding partnerships, such as with Microsoft for Generative AI capabilities, to enhance customer experiences [12][41] - The company is investing in global expansion, particularly in regions like Saudi Arabia, with a $500 million investment aimed at enhancing data center capabilities [134][133] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment for enterprise software, highlighting that AI is a catalyst for business transformation [15][46] - The company anticipates continued strong performance in Q2, driven by Gen AI conversations serving as a digital transformation catalyst [22][27] - Management noted that the current economic environment is not as challenging as in previous years, with budgets increasing for IT and Gen AI initiatives [87][88] Other Important Information - The company ended Q1 with $8.8 billion in cash and investments, and a share repurchase program is in place to manage dilution [25][26] - The company is preparing for its upcoming Investor Day, where more details on strategy and performance will be shared [27][41] Q&A Session Summary Question: Insights on cRPO and seasonality - Management noted that early renewals were stronger than last year, but they remain prudent in forecasting for Q2 due to seasonality [28][83] Question: Gen AI adoption and its impact on hiring - Management confirmed that Gen AI is increasing engineering productivity and innovation velocity, positively impacting hiring plans [72][73] Question: RPO growth and its implications - RPO growth was 27% year-over-year, indicating a strong long-term opportunity for the company [68][69] Question: Federal government business performance - The federal business had its biggest Q1 ever, with significant net new ACV growth and strong interest in Gen AI offerings [188][176] Question: Pro Plus adoption rates - Pro Plus is seeing faster adoption compared to Pro, exceeding internal projections and driving significant interest from customers [191][190]