ServiceNow Inc. (NYSE:NOW) saw its stock plummet 9.24% in pre-market trading on Thursday, following the release of its fourth-quarter 2024 earnings results and disappointing subscription revenue guidance for the full year 2025.

Despite reporting a 21% year-over-year increase in revenue to $2.96 billion for the fourth quarter, beating analysts' expectations, ServiceNow's forecast for 2025 subscription revenue fell short of Wall Street estimates. The company projected subscription revenue between $12.64 billion and $12.68 billion for the full year 2025, lower than the consensus estimate of $12.83 billion.

ServiceNow cited the impact of a strong U.S. dollar as a key factor contributing to the lower subscription revenue outlook, with Chief Financial Officer Gina Mastantuono stating that the currency headwind is expected to reduce subscription revenue by approximately $175 million in 2025.

The company's shares tumbled in pre-market trading as investors reacted to the disappointing subscription revenue guidance, which is a closely watched metric for the software-as-a-service (SaaS) company. However, ServiceNow reported strong growth in its AI-powered offerings, with a 150% quarter-over-quarter increase in deals for its Now Assist service desk product.

The pre-market sell-off suggests that investors are concerned about ServiceNow's ability to maintain its rapid growth trajectory in the face of currency headwinds and potentially softer demand for its subscription services. The company's focus on artificial intelligence and its efforts to capitalize on the AI opportunity, as evidenced by the expansion of executive roles, will be closely watched in the coming quarters.