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ServiceNow shares rise after quarterly subscription revenue and bookings beat
Subscription revenue rose about 25% year over year to $3.88 billion, and cRPO increased 21% to $13.2 billion.
ServiceNow shares jumped about 3% in early trading after the company reported quarterly subscription revenue and bookings that topped analyst expectations, helping ease investor concerns about disruption from AI competitors, according to Yahoo Finance.
Yahoo Finance said subscription revenue increased roughly 25% year over year to $3.88 billion, while current remaining performance obligations, or cRPO, rose 21% to $13.2 billion, a metric management views as a gauge of near term bookings.
Management attributed continued strength to demand for the company’s AI products, noting that AI performance has been running ahead of expectations alongside broad customer demand and operating leverage, Yahoo Finance reported.
The report also noted that software companies have been marketing generative AI integrations as the industry has faced scrutiny earlier this year, and it cited that ServiceNow shares are down 37% year to date, with software peers mixed on the day.