ServiceNow satisfies Q1 targets, but net losses increase

The Santa Clara, Calif.-headquartered company reported a first quarter net loss of $333.3 million, or $2.06 cents a share.

IT management services company ServiceNow delivered solid first quarter earnings and revenue Wednesday after the bell, despite significant losses.

The Santa Clara, Calif.-headquartered company reported a first quarter net loss of $333.3 million, or $2.06 a share.

A year ago, ServiceNow's net losses were $58 million, or 38 cents a share.

The non-GAAP profit for ServiceNow was $14.5 million, or nine cents per share. Total revenue was $305.9 million, up 44 percent compared to a year ago (statement).

Wall Street was expecting earnings of seven cents per share on revenue of $300.88 million.

ServiceNow CEO Frank Slootman said strong upsells and sales of its emerging products were two key growth factors during the quarter.

Michael Scarpelli, ServiceNow's finance chief, said the company now has 249 customers each paying more than $1 million in annualized contract value, which is an increase of 48 percent year-over-year.

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The company said billings for quarter came in at $376.7 million, up 41 percent year-over-year.

For the current quarter, ServiceNow expects revenues between $332 million and $335 million. For the year the company expects revenue in the range of $1.35 billion to $1.38 billion.

Wall Street is expecting 2016 revenue of about $1.36 billion. ServiceNow's shares were up around eight percent in after-market trading.