Investing.com -- ServiceNow fell sharply in afterhours trading Wednesday even as the IT management software group's fourth-quarter results topped Wall Street estimates, supported by jump in subscription revenue.
ServiceNow Inc (NYSE:NOW) fell 9% in recent afterhours trade.
Santa Clara, California-based ServiceNow reported Q4 adjusted earnings per diluted share at $3.67 on revenue of $2.96 billion, compared with Wall Street expectations of $3.65 a share and $2.75 billion, respectively.
ServiceNow's release of new AI agents to help clients manage tasks autonomously continued to boost subscription growth.
Subscription revenues rose 21% to $2.87 billion in Q4 2024 from the same period a year earlier.
Current remaining performance obligations, a key metric, stood at $10.27B as of Q4 2024, representing 19% year-over-year growth.
For Q1, the company is guiding subscription revenues in a range of $2.995B to $3.00B.
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