Shares of ServiceNow Inc. (NOW) fell more than 3% in the extended session Wednesday after the cloud software company reported second-quarter earnings above expectations and said its subscription sales rose 30%. ServiceNow said it earned $41 million, or 20 cents a share, in the quarter, swinging from a loss of 6 cents a share in the year-ago period. Adjusted for one-time items, the company earned $1.23 a share. Revenue rose 28% to $1.07 billion, the company said. Analysts polled by FactSet had expected adjusted earnings of $1.01 a share on sales of $1.05 billion for the quarter. The company said its subscription revenue rose 30% year-on-year. ServiceNow guided for subscription revenue between $4.185 billion and $4.200 billion for full year 2020. "Our best--in--class renewal rate remained at 97%, and customers continue to expand on the Now Platform, giving us conviction to raise our growth and profitability guidance for the year. I am confident in our ability to deliver our second half." Chief Financial Officer Gina Mastantuono said in a statement.
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 29, 2020 17:45 ET (21:45 GMT)
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