ServiceNow beats Q4 expectations

The company has wrapped up its first quarter under new chief executive Bill McDermott.

ServiceNow delivered better-than-expected fourth quarter financial results on Wednesday as it wrapped up its first quarter under new chief executive Bill McDermott. 

ServiceNow, makers of a cloud automation platform used for IT service and other functions, reported a net income of $598 million, or $3.03 a share, on revenue of $951.8 million, up 33% from a year ago. Non-GAAP earnings for the quarter were 96 cents a share. Wall Street was looking for non-GAAP earnings of 87 cents a share on revenue of $941.2 million.

Also: ServiceNow under McDermott plans to go vertical starting with banks and telcos

The company said subscription billings were $1.29 billion and grew 36% year-over-year. Subscription revenue was $899 million, up 35% from a year ago. ServiceNow ended the quarter with 892 total customers with more than $1 million in annual contract value, an increase of 32% year-over-year.

"ServiceNow beat the high end of guidance for Q4, ending the year very strong," said ServiceNow President and CEO Bill McDermott. "In Q4, we saw record deals and broad expansion of the Now Platform. ServiceNow is orchestrating what every company wants - workflows that create great experiences.

As for the outlook, ServiceNow said it will have subscription revenue of $975 million to $980 million with subscription billings of $1.04 billion to $1.05 billion.

Shares of ServiceNow were up more than 6% after hours.