ServiceNow delivers Q2 sales surge, ups outlook

Summary:Meanwhile, Akamai and Equinix reported quarters with better-than-expected sales. ServiceNow's 63 percent revenue growth in the second quarter led the charge.

ServiceNow delivered stronger-than-expected revenue growth in the second quarter as enterprises begin to use the company's platform for more than IT service management.

The company reported a second quarter net loss of $50.4 million, or 35 cents a share, on revenue of $166.8 million, up 63 percent from a year ago. The non-GAAP loss was 7 cents a share.

Wall Street was expecting ServiceNow to report a loss of 7 cents a share on revenue of $161.5 million.

ServiceNow's deferred revenue was $328.9 million, up 7 percent sequentially. The company added 169 new customers in the quarter for a total of 2,364. The renewal rate for ServiceNow is 98 percent and average revenue per customer was up 21 percent in the second quarter compared to a year ago.

As for the outlook, ServiceNow projected third quarter sales of $173 million to $175 million with an operating margin of 1 percent. Wall Street was expecting ServiceNow to report third quarter sales of $169.6 million. ServiceNow's outlook does include the operations of Neebula Systems, which was acquired earlier this month .

For 2014, ServiceNow also raised its outlook and now expects sales to be $668 million to $673 million.

During the quarter, ServiceNow launched a series of products designed to manage facilities and create custom apps.

snowq2

Akamai also delivered a strong quarter with second earnings of $73 million, or 40 cents a share, on revenue of $476 million, up 26 percent from a year ago. Non-GAAP earnings were 58 cents a share.

Wall Street was expecting earnings of 55 cents a share on revenue of $472.9 million for the quarter.

The company delivered strong growth across is three primary product lines---media delivery, security and performance and service and support. Akamai ended the quarter with 4,558 employees and 154,079 servers deployed.

Equinix, a key player in bridging on-premise data centers to public cloud resources , reported a solid second quarter in terms of revenue.

The company reported second quarter earnings of $11.3 million, or 22 cents a share, on revenue of $605.2 million, up 4 percent from a year ago. Equinix said its earnings were hit due to a charge of $51.2 million as it retired debt early.

Wall Street was looking for earnings of 81 cents a share on revenue of $596 million.

Equinix said it expects third quarter revenue to be between $614 million and $618 million. Wall Street was expecting third quarter sales of $606.25 million.

The company projected 2014 sales to be between $2.42 billion and $2.43 billion.

Topics: Cloud, Data Centers, Enterprise Software

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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