Advertisement
UK markets closed

  • FTSE 100

    8,213.49
    +41.34 (+0.51%)
     

  • FTSE 250

    20,164.54
    +112.21 (+0.56%)
     

  • AIM

    771.53
    +3.42 (+0.45%)
     

  • GBP/EUR

    1.1652
    -0.0031 (-0.26%)
     

  • GBP/USD

    1.2546
    +0.0013 (+0.11%)
     

  • Bitcoin GBP

    50,712.32
    +1,768.39 (+3.61%)
     

  • CMC Crypto 200

    1,359.39
    +82.41 (+6.45%)
     

  • S&P 500

    5,127.79
    +63.59 (+1.26%)
     

  • DOW

    38,675.68
    +450.02 (+1.18%)
     

  • CRUDE OIL

    77.99
    -0.96 (-1.22%)
     

  • GOLD FUTURES

    2,310.10
    +0.50 (+0.02%)
     

  • NIKKEI 225

    38,236.07
    -37.98 (-0.10%)
     

  • HANG SENG

    18,475.92
    +268.79 (+1.48%)
     

  • DAX

    18,001.60
    +105.10 (+0.59%)
     

  • CAC 40

    7,957.57
    +42.92 (+0.54%)
     
MONEY:

Best savings accounts that offer above inflation rates

Where to find a top-rated deal that works for you

Compared to Estimates, ServiceNow (NOW) Q1 Earnings: A Look at Key Metrics

Zacks Equity Research
·2-min read

ServiceNow (NOW) reported $2.6 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 24.2%. EPS of $3.41 for the same period compares to $2.37 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $2.59 billion, representing a surprise of +0.62%. The company delivered an EPS surprise of +8.25%, with the consensus EPS estimate being $3.15.

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.

ADVERTISEMENT

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: $8.45 billion compared to the $8.41 billion average estimate based on four analysts.

  • Remaining Performance Obligations (RPO) - GAAP: $17.7 billion compared to the $17.4 billion average estimate based on three analysts.

  • Revenues- Professional services and other: $80 million compared to the $75.40 million average estimate based on nine analysts. The reported number represents a change of +11.1% year over year.

  • Revenues- Subscription: $2.52 billion versus the nine-analyst average estimate of $2.51 billion. The reported number represents a year-over-year change of +24.7%.

  • Gross Profit (Non-GAAP)- Subscription: $2.16 billion versus $2.12 billion estimated by eight analysts on average.

  • Gross Profit (Non-GAAP)- Professional services and other: $13 million versus the eight-analyst average estimate of $6.26 million.

View all Key Company Metrics for ServiceNow here>>>

Shares of ServiceNow have returned -4.8% over the past month versus the Zacks S&P 500 composite's -3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ServiceNow, Inc. (NOW) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research