Enterprise workflow software maker ServiceNow (NYSE:NOW) will be reporting earnings tomorrow after market hours. Here's what to expect.
Last quarter ServiceNow reported revenues of $1.83 billion, up 21% year on year, missing analyst expectations by 1.11%. Despite the stock rising on the report, it was a weaker quarter for the company, with a miss of the top line analyst estimates and subscription revenue guidance for the next quarter below expectations. The company added 67 enterprise customers paying more than $1m annually to a total of 1,530.
Is ServiceNow buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting ServiceNow's revenue to grow 20.1% year on year to $1.94 billion, slowing down from the 29.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.02 per share.
The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing three upward and three downward revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.
With ServiceNow being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for productivity software stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 14.8% over the last month. ServiceNow is up 16.9% during the same time, and is heading into the earnings with analyst price target of $517.20 compared to share price of $445.00.
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The author has no position in any of the stocks mentioned.