Advertisement
Canada markets closed

  • S&P/TSX

    21,947.41
    +124.19 (+0.57%)
     

  • S&P 500

    5,127.79
    +63.59 (+1.26%)
     

  • DOW

    38,675.68
    +450.02 (+1.18%)
     

  • CAD/USD

    0.7308
    -0.0006 (-0.08%)
     

  • CRUDE OIL

    77.99
    -0.96 (-1.22%)
     

  • Bitcoin CAD

    87,589.00
    +1,776.14 (+2.07%)
     

  • CMC Crypto 200

    1,359.39
    +82.41 (+6.45%)
     

  • GOLD FUTURES

    2,310.10
    +0.50 (+0.02%)
     

  • RUSSELL 2000

    2,035.72
    +19.61 (+0.97%)
     

  • 10-Yr Bond

    4.5000
    -0.0710 (-1.55%)
     

  • NASDAQ

    16,156.33
    +315.37 (+1.99%)
     

  • VOLATILITY

    13.49
    -1.19 (-8.11%)
     

  • FTSE

    8,213.49
    +41.34 (+0.51%)
     

  • NIKKEI 225

    38,236.07
    -37.98 (-0.10%)
     

  • CAD/EUR

    0.6787
    -0.0030 (-0.44%)
     

Compared to Estimates, ServiceNow (NOW) Q1 Earnings: A Look at Key Metrics

Zacks Equity Research
·2 min read

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 they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

ADVERTISEMENT

Here is how ServiceNow performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Current Remaining Performance Obligations(cRPO) - GAAP: $8.45 billion compared to the $8.41 billion average estimate based on four analysts.

  • Remaining Performance Obligations (RPO) - GAAP: $17.7 billion compared to the $17.4 billion average estimate based on three analysts.

  • Revenues- Professional services and other: $80 million compared to the $75.40 million average estimate based on nine analysts. The reported number represents a change of +11.1% year over year.

  • Revenues- Subscription: $2.52 billion versus the nine-analyst average estimate of $2.51 billion. The reported number represents a year-over-year change of +24.7%.

  • Gross Profit (Non-GAAP)- Subscription: $2.16 billion versus $2.12 billion estimated by eight analysts on average.

  • Gross Profit (Non-GAAP)- Professional services and other: $13 million versus the eight-analyst average estimate of $6.26 million.

View all Key Company Metrics for ServiceNow here>>>

Shares of ServiceNow have returned -4.8% over the past month versus the Zacks S&P 500 composite's -3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ServiceNow, Inc. (NOW) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research