ServiceNow (NOW) To Report Earnings Tomorrow: Here Is What To Expect

Jabin Bastian /
2022/10/25 2:59 am EDT

Enterprise workflow software maker ServiceNow (NYSE:NOW) will be announcing earnings results tomorrow after market hours. Here's what to look for.

Last quarter ServiceNow reported revenues of $1.75 billion, up 24.3% year on year, missing analyst expectations by 0.62%. It was a mixed quarter for the company, with accelerating growth in large customers but a miss of the top line analyst estimates. The company added 62 enterprise customers paying more than $1m annually to a total of 1,463.

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 22.4% year on year to $1.85 billion, slowing down from the 31.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.85 per share.

ServiceNow Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing seven downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.94%.

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 software stocks, but investors in the segment have had steady hands going into the earnings, with the stocks up on average 1.03% over the last month. ServiceNow is down 0.16% during the same time, and is heading into the earnings with analyst price target of $533.93, compared to share price of $369.50.

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The author has no position in any of the stocks mentioned.