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ServiceNow (NOW) Reports Q2 Earnings: What Key Metrics Have to Say

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For the quarter ended June 2024, ServiceNow (NOW - Free Report) reported revenue of $2.63 billion, up 22.2% over the same period last year. EPS came in at $3.13, compared to $2.37 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $2.61 billion, representing a surprise of +0.79%. The company delivered an EPS surprise of +9.82%, with the consensus EPS estimate being $2.85.

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.

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: $8.78 billion versus $8.66 billion estimated by four analysts on average.
  • Remaining Performance Obligations (RPO) - GAAP: $18.6 billion versus $17.67 billion estimated by three analysts on average.
  • Revenues- Professional services and other: $85 million compared to the $79.22 million average estimate based on nine analysts. The reported number represents a change of +13.3% year over year.
  • Revenues- Subscription: $2.54 billion versus $2.53 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +22.5% change.
  • Gross Profit (Non-GAAP)- Professional services and other: $14 million versus $7.90 million estimated by eight analysts on average.
  • Gross Profit (Non-GAAP)- Subscription: $2.16 billion compared to the $2.13 billion average estimate based on eight analysts.
View all Key Company Metrics for ServiceNow here>>>

Shares of ServiceNow have returned +1.4% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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