ServiceNow Q2 strong, fueled by big deals, multi-product customers

For 2017, ServiceNow is projecting more than $1.9 billion in revenue.
Written by Larry Dignan, Contributor on

ServiceNow continues to land larger enterprise deals and that momentum boosted the company's second quarter results.

The cloud work automation platform reported a second quarter net loss of $56.5 million, or 33 cents a share, on revenue of $471.7 million, up 38 percent from a year ago. Non-GAAP earnings for the second quarter were 22 cents a share.

Wall Street was looking for second quarter non-GAAP earnings per share of 20 cents a share on sales of $461.8 million.

ServiceNow, which started out as an IT service tool and expanded into HR and other business functions, said it has 403 customers with an annual contract value topping $1 million. ServiceNow has almost 800 customers in the global 2000. Subscription revenue for the quarter was $411 million, up 41 percent from a year ago.

ServiceNow launches machine learning, AI automation engine

Other key points:

  • The company is targeting $4 billion in annual revenue in 2020.
  • 17 of ServiceNow's top 20 deals in the second quarter included more than 3 products.
  • 75 percent of customers buy more than one product.

As for the outlook, ServiceNow said third quarter revenue will be between $488 million and $493 million with non-GAAP operating margins of 17 percent.

For 2017, ServiceNow said it will deliver sales of $1.9 billion and $1.91 billion, up about 37 percent from 2016. Non-GAAP operating margins will be about 16 percent.

Editorial standards