ServiceNow (NYSE:NOW) experienced a notable increase of more than 6% in its share price pre-market today following the announcement of higher annual subscription guidance and impressive fiscal Q2 results. The software company also revealed that COO CJ Desai had left, with Chris Bedi stepping in as interim Chief Product Officer.
ServiceNow reported adjusted earnings of $3.13 per share on revenue of $2.63 billion, surpassing Wall Street estimates of $2.82 per share on revenue of $2.60 billion.
Subscription revenues for Q2 grew by 23% to $2.54 billion compared to the same period last year, driven by new business acquisitions. The company recorded 88 transactions exceeding $1 million in net new annual contract value (ACV) in Q2, a 26% increase year-over-year, significantly boosting its backlog.
ServiceNow’s remaining performance obligations (RPO) reached $18.6 billion as of Q2, marking a 31% growth year-over-year. Looking forward, the company raised its subscription revenue guidance to a range of $2.66 billion to $2.67 billion, up from the previous range of $2.525 billion to $2.530 billion.