ServiceNow said net new AI contract value rose 65%. Its shares still fell 18% after hours, on a weaker sales forecast.
ServiceNow shares dropped 18% in after-hours trading on 28 October after its third-quarter results, SiliconANGLE reported.
Revenue grew 20.5% to $4.11 billion, $20 million above analysts' estimate. Adjusted earnings were $1 a share, below the $1.02 analysts expected.
The forecast was the weak spot. ServiceNow expects fourth-quarter sales of $4.25 billion to $4.26 billion. Analysts had projected $4.36 billion.
CEO Bill McDermott told investors that net new annual contract value from AI products rose 65% from a year earlier. The company raised its full-year AI contract value goal to $1.7 billion, up 70% since January. It also signed 19 deals worth over $5 million a year each.
The gap in the forecast is about $100 million on one quarter's sales. The 18% move came in after-hours trading, before the next regular session.
Sources
Our file on ServiceNow
- 28 Oct
EY says brewer Lion's HR costs fell about 30% after a ServiceNow redo. Lion already had the software but used it little.
- 23 Oct
BT says AI tools cut a 14-week bid to three minutes. Its business chief calls agents without a human "a huge decision".
- 20 Oct
Salesforce said at least 20,000 workers changed roles. It cited an AI redesign.
- 17 Oct
ServiceNow showed its AI agent passport blocking a $40 refund. The limit was $25.
- 16 Oct
ServiceNow denied any interest in buying Decagon. Its shares rose 5% on Thursday.
For your next steering committee
- 1Ask which design decisions in your programme would be expensive to reverse, and when each was last reviewed.
- 2Ask which expected benefits change if the implementation approach changes.
- 3Ask who owns a decision to change course, and where it would be recorded.
Issue 01 of the ERP LEADERS brief puts a timeline, the three-number review and six questions on one page. Read issue 01
Welcome back. · Issue 01
