ServiceNow Projects Sales That Fall Short of Expectations
- Company says subscription revenue will jump 22% in quarter
- Investors were looking for greater results, analyst says
This article is for subscribers only.
ServiceNow Inc. provided an outlook for sales in the quarter that fell just short of analysts’ estimates, suggesting that corporate budgets for software purchases remain tight. The shares declined about 5% in extended trading.
Subscription sales, which account for the bulk of the company’s revenue, will increase about 22% to $2.53 billion in the period ending in June, ServiceNow said Wednesday in a statement. Analysts, on average, estimated $2.54 billion. Current remaining performance obligations, a measure of contracted sales, will increase about 21% from a year ago, ServiceNow said, also in line with analysts’ estimates.