ServiceNow Inc. (NOW) witnessed a significant sell-off in its stock price, plunging 8.27% in after-hours trading on Wednesday, January 29, 2025. The steep decline came after the company reported its fourth-quarter 2024 financial results and provided guidance for the upcoming fiscal year.
While ServiceNow's Q4 revenue of $2.96 billion and adjusted earnings per share of $3.67 were in line with analyst expectations, the company's outlook for subscription revenue fell short of Wall Street estimates, raising concerns among investors.
For the full year 2025, ServiceNow projected subscription revenue in the range of $12.64 billion to $12.68 billion, lower than the consensus estimate of $12.83 billion. The company cited the impact of a strong U.S. dollar as a key factor, with Chief Financial Officer Gina Mastantuono stating that the currency headwind is expected to reduce subscription revenue by approximately $175 million in 2025.
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