ServiceNow delivers Q2 sales surge, ups outlook

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.

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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

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