ServiceNow (NOW US) Inline 4Q24 results; upbeat on AI development ServiceNow reported 4Q24 results: total revenue increased by 21% YoY to US$2.96bn, and non-GAAP operating profit grew by 22% YoY to US$872mn, both in line with consensus estimates. FY24 total revenue was up by 22% YoY to US$10.98bn, with non-GAAP OPM up by 1.9ppts YoY to 29.6%, driven by operating leverage and efficiency gains. For FY25, management guides subscription revenue to increase by 19.5-20% YoY on a constant currency basis, which is ...

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 ...

Market Adoption and Customer Base - The Now Platform is utilized by over 85% of the Fortune 500 and nearly 60% of the Global 2000, indicating strong market adoption and trust in the platform[16]. - As of December 31, 2024, the company had approximately 8,400 customers across various industries, with an increasing portion of revenues generated from government customers[69]. - Sales outside of North America represented 37% of total revenues for the year ended December 31, 2024, compared to 36% in 2023[105]. - The number of customers with annual contract value (ACV) greater than $1 million increased to 2,109 as of December 31, 2024, up from 1,885 in 2023, representing a growth of 11.9%[205]. - The renewal rate remained stable at 98% for the years ended December 31, 2024, 2023, and 2022, indicating strong customer retention[209]. AI and Technology Integration - ServiceNow has embedded Now Assist, an AI solution, to enhance user productivity and efficiency, significantly improving workflow efficiency and fidelity for customers[14]. - The company plans to continue expanding its AI-powered product portfolio, with a focus on integrating AI capabilities into existing products[17]. - ServiceNow's AI solutions, including Now Assist, are designed to automate processes and improve customer service experiences, leading to faster resolution times and increased customer satisfaction[36]. - The integration of AI in Customer Service Management allows for rapid case summaries and improved agent productivity, enhancing overall service quality[36]. - The company emphasizes a human-centered approach to deploying AI products and services at scale, ensuring trust and reliability[16]. Financial Performance and Growth - Free cash flow for the year ended December 31, 2024, was $3.455 billion, a 26.6% increase from $2.728 billion in 2023[206]. - Non-GAAP consolidated income from operations for 2024 was $3.254 billion, compared to $2.489 billion in 2023, reflecting a year-over-year increase of 30.8%[208]. - GAAP income from operations for 2024 was $1.364 billion, significantly up from $762 million in 2023, marking an increase of 79.0%[208]. - The company recognizes revenues from subscription services over the subscription term, making it difficult to rapidly increase revenues in response to new customer acquisitions[151]. - The company expects a decline in revenue growth rate over the long term due to increasing competition and market saturation, alongside rising costs from strategic investments[152]. Research and Development - The company has made significant investments in research and development to enhance platform capabilities, strengthen existing applications, and develop new services, focusing on automation, AI, and machine intelligence technologies[70]. - The company has over 2,000 U.S. and foreign patents and more than 600 pending patent applications as of December 31, 2024, reflecting its commitment to protecting its intellectual property[74]. Cybersecurity and Compliance - The cybersecurity program is overseen by the board and management, focusing on risk management and compliance with industry standards[169]. - The company has conducted independent cyber maturity assessments in 2022, 2023, and 2024 to evaluate its cybersecurity controls[176]. - The company faces increasing cybersecurity risks due to reliance on third-party providers and public cloud infrastructure, with supply chain attacks becoming more frequent and severe[127]. - Vulnerabilities in the company's products and services have been identified, with expectations of ongoing challenges in addressing these vulnerabilities and delays in developing effective patches[128]. - An actual or perceived security breach could materially affect the company's operations, finances, and reputation, leading to significant costs and liabilities[132]. Employee Engagement and Wellbeing - The company has implemented a comprehensive range of benefits and wellbeing programs, including "Wellbeing Days" for employees[86]. - The company aims to create a safe and inclusive workplace, focusing on employee engagement through initiatives like the Employee Voice Survey[80]. - The company continues to maintain systematic gender pay equity globally and conducts annual assessments to ensure no statistically significant compensation differences exist[87]. - As of December 31, 2024, the company employed 26,293 full-time employees, with 13,193 in the United States and 13,100 internationally[89]. Strategic Partnerships and Market Expansion - The company has expanded partnerships with technology companies, including NVIDIA, to enhance enterprise AI capabilities and integrate with cloud providers like Amazon Web Services[68]. - The company continues to expand its sales capabilities in new geographies and plans to increase investments in existing locations to achieve scale efficiencies in sales and marketing efforts[65]. - The company has made substantial investments in data centers and geographic-specific service delivery models to support international market expansion[105]. Risks and Challenges - The company faces risks related to compliance with evolving data privacy laws, which may impact its ability to optimize its platform[98]. - The complexity of customer deals is increasing, leading to longer sales cycles and greater competition, which may negatively impact the company's ability to close sales[122]. - The procurement process for government contracts is highly competitive and time-consuming, which may affect the company's ability to secure contracts[116]. - The company may face increased operational costs and restrictions due to compliance with local laws and regulations in international markets[107]. - The company recognizes that its revenue growth rate is expected to decline over the long term as the business matures[102]. Stockholder Information - The cumulative total stockholder return on the company's common stock increased to 375.50 by December 31, 2024, compared to an initial investment of $100[194]. - The board of directors does not intend to pay cash dividends on common stock for the foreseeable future, opting to retain earnings for business growth[187]. - The company has authorized a share repurchase program of up to $1.5 billion, with an additional $3.0 billion authorized in January 2025[195]. - The company repurchased a total of 293,000 shares in the fourth quarter of 2024 at an average price of $1,007.28 per share, with approximately $266 million remaining for future repurchases under the program[195].