Athira Sethu
Kochi, 24 October 2024
ServiceNow has lifted its annual revenue guidance after its third quarter results outpaced the Wall Steer expectations. This reflects, in general, that the demand for the company’s AI-driven products continues to be strong as most businesses seek better methods to manage their IT services.
California’s Santa Clara-based ServiceNowalso said its subscription-based revenue would be higher in the fourth quarter due to increasing interest from both new and old customers.
In September, ServiceNow introduced AI agents that can do several autonomous tasks. These agents will start out in limited release in November and will spotlight areas such as IT and customer service applications, letting clients customize them to their unique needs.
Other big contenders, such as Salesforce and Microsoft, are also launching similar AI agents. Experts are of the opinion that this can make it easier for companies to recoup some of the enormous investments they are making in AI technologies.
Among ServiceNow’s customers are some of the most recognizable companies including AT&T, Equinix, Zoom Video Communications, and Uber Technologies.
ServiceNow projects subscription revenue to be between $2.875 billion and $2.88 billion for the fourth quarter, exceeding the $2.85 billion average analyst estimate. The company also raised its annual subscription revenue forecast to a range of $10.655 billion and $10.66 billion, from its earlier estimate of between $10.575 billion and $10.585 billion.
ServiceNow reported revenue of $2.80 billion in its third quarter, surpassing expectations of $2.74 billion. Earnings for the quarter ending September 30 came in at $3.72 a share on an adjusted basis, beating the estimates at $3.46.
ServiceNow also appointed former Google Cloud Executive Amit Zavery as President, Chief Product Officer, and Chief Operating Officer, Effective October 28.
