ServiceNow Projects Strong Sales Growth With Cautious Caveat

  • Software company says interest in AI added ‘fuel’ to business
  • Subscription sales jump 27% in the quarter, topping estimates
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ServiceNow Inc. provided a revenue outlook for the current quarter that topped Wall Street estimates while giving a conservative projection for future business growth.

Subscription sales, which account for the bulk of the company’s revenue, will increase about 24% to $2.51 billion in the period ending in March, ServiceNow said Wednesday in a statementBloomberg Terminal. Analysts, on average, estimated $2.46 billion. For the full year, subscription revenue will grow about 22%, slightly above the average projection.