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ServiceNow (NOW) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
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ServiceNow (NOW - Free Report) reported $2.44 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 25.6%. EPS of $3.11 for the same period compares to $2.28 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $2.4 billion, representing a surprise of +1.68%. The company delivered an EPS surprise of +12.27%, with the consensus EPS estimate being $2.77.
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.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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: $8.6 billion versus $8.41 billion estimated by five analysts on average.
Remaining Performance Obligations (RPO) - GAAP: $18 billion compared to the $17 billion average estimate based on four analysts.
Number of Customers with ACV greater than $1 million: 1,897 versus 1,913 estimated by two analysts on average.
Revenues- Professional services and other: $72 million versus the 10-analyst average estimate of $74.49 million. The reported number represents a year-over-year change of -10%.
Revenues- Subscription: $2.37 billion versus the 10-analyst average estimate of $2.32 billion. The reported number represents a year-over-year change of +27.2%.
Gross Profit (Non-GAAP)- Subscription: $2 billion compared to the $1.93 billion average estimate based on nine analysts.
Gross Profit (Non-GAAP)- Professional services and other: $11 million compared to the $6.17 million average estimate based on nine analysts.
Shares of ServiceNow have returned +7.4% over the past month versus the Zacks S&P 500 composite's +2.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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ServiceNow (NOW) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
ServiceNow (NOW - Free Report) reported $2.44 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 25.6%. EPS of $3.11 for the same period compares to $2.28 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $2.4 billion, representing a surprise of +1.68%. The company delivered an EPS surprise of +12.27%, with the consensus EPS estimate being $2.77.
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.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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: $8.6 billion versus $8.41 billion estimated by five analysts on average.
- Remaining Performance Obligations (RPO) - GAAP: $18 billion compared to the $17 billion average estimate based on four analysts.
- Number of Customers with ACV greater than $1 million: 1,897 versus 1,913 estimated by two analysts on average.
- Revenues- Professional services and other: $72 million versus the 10-analyst average estimate of $74.49 million. The reported number represents a year-over-year change of -10%.
- Revenues- Subscription: $2.37 billion versus the 10-analyst average estimate of $2.32 billion. The reported number represents a year-over-year change of +27.2%.
- Gross Profit (Non-GAAP)- Subscription: $2 billion compared to the $1.93 billion average estimate based on nine analysts.
- Gross Profit (Non-GAAP)- Professional services and other: $11 million compared to the $6.17 million average estimate based on nine analysts.
View all Key Company Metrics for ServiceNow here>>>Shares of ServiceNow have returned +7.4% over the past month versus the Zacks S&P 500 composite's +2.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.