ServiceNow beats estimates, acquires VendorHawk

eBay also reported first quarter financial results.

ServiceNow, makers of a cloud automation platform used for IT service and other functions, reported first quarter financial results on Wednesday that beat market estimates. The company also announced that it's acquiring SaaS management company VendorHawk.

As for the numbers, ServiceNow posted a net income of 10.6 million, or six cents a share, on revenue of $589.2 million, up 37 percent from a year ago.

Non-GAAP earnings for the third quarter were 56 cents a share. Wall Street was looking for non-GAAP earnings of 37 cents a share on revenue of $570.3 million.

The company said subscription billings were $638.4 million and grew 33 percent year-over-year. Subscription revenue was $543.3 million, up 40 percent from a year ago.

"Outperformance in the quarter was driven by 21 transactions greater than $1 million in net new annual contract value and continued strength from our entire product portfolio," said ServiceNow CFO Michael Scarpelli.

As for the acquisition, ServiceNow plans to VendorHawk's technology to bolster its asset management platform.

"Adding VendorHawk's capabilities to our Software Asset Management service strengthens ServiceNow's unique value, bringing together essential capabilities into a single, comprehensive platform that greatly improves efficiency while still supporting the employee experience," said Farrell Hough, GM of ServiceNow. "Having a real‑time view of all software assets is critical for our customers to consciously rationalize and optimize software spend as they digitally transform."

In a busy day for tech earnings, eBay also reported first quarter financial results. The company posted first quarter net income of $548 million, or 40 cents per share. Non-GAAP earnings were also 53 cents per share with revenue of $2.58 billion, up 12 percent from the same period last year.

Wall Street was looking for earnings of 53 cents per share on revenue of $2.59 billion.

"In Q1 we drove good growth and made further progress with our multi-year effort to transform our customer experience and sharpen the eBay brand," said CEO Devin Wenig.

eBay said it had 171 million active buys at the end of Q1, up four percent. The company said gross merchandise volume came in at $23.6 billion. The bulk came from its Marketplace platforms, on which eBay has focused significant technology and marketing efforts. The company said Marketplace delivered $22.5 billion of GMV and $2.1 billion of revenue.

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