Actionable news
0
All posts from Actionable news
Actionable news in NOW: SERVICENOW Inc,

What's in the Cards for ServiceNow (NOW) in Q2 Earnings?

ServiceNow Inc. NOW is set to release second-quarter 2017 earnings on Jul 26. The company has missed the Zacks Consensus Estimate in all the trailing four quarters, with an average negative surprise of 31.54%.

Last quarter, the company reported a loss (including stock based compensation) of 18 cents per share, wider than the Zacks Consensus Estimate of a loss of 16 cents.

However, revenues of almost $424 million surged 38.6% year over year to beat the Zacks Consensus Estimate of $409 million. ServiceNow won 28 new deals greater than $1 million in net new annualized contract value (ACV), and 26 net new Global 2K customers. Renewal rate was 97% in the reported quarter.

The shares have massively outperformed the industry on a year-to-date basis. While the industry gained 21.3%, the stock returned 47.8%. We believe that the company’s expanding product portfolio, increasing multi-product customer base and strong renewal rate are the key growth drivers.

Let’s see how things are shaping up for this announcement.

Factors to Consider

ServiceNow enjoys a dominant position in the IT Service Market (ITSM) and IT Operations Market (ITOM). The company is also penetrating the non-ITSM markets like human resource and security solutions by launching new products and services. The size of its total addressable...


More