ServiceNow Inc. (NOW) shares gained 3.4% in the extended session Wednesday after the company topped consensus earnings estimates. The company reported first-quarter net income of $48.4 million, or 24 cents a share, versus a net loss of $1.6 million, or a penny a share, in the year-ago period. Adjusted for items such as stock-based compensation, among others, earnings were $1.05 a share compared with 67 cents a share a year ago. Revenue rose to $1.05 billion from $788.9 million in the year-ago period. Analysts surveyed by FactSet had estimated adjusted earnings of 95 cents a share on revenue of $1.02 billion. For the second quarter, analysts model adjusted earnings of 93 cents a share and sales of $1.06 billion. The company said that the subscription revenue guidance it provided Wednesday takes in account the expected impacts of the COVID-19 pandemic and that the most significant challenges will occur in the second and third quarters of 2020. ServiceNow said it expected uncertainty around new business, renewal timing, billing terms especially with customers in industries that have been affected by the pandemic; the company said it is assuming economic conditions will begin "to open up more broadly by the end of the year." ServiceNow stock has gained 18.5% in the past year, with the S&P 500 index falling 2.7%.
-Max A. Cherney; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
April 29, 2020 16:31 ET (20:31 GMT)
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