Svmuu News: Enterprise software company ServiceNow reported its earnings, with subscription revenue rising 25% year-over-year to $3.9 billion, exceeding TD Cowen’s forecast of approximately $3.8 billion. Current remaining performance obligations reached $13.2 billion, higher than TD Cowen’s forecast of $13.0 billion.
ServiceNow raised its full-year subscription revenue guidance to $15.76 billion to $15.78 billion, with the upper end of the range aligning with TD Cowen’s forecast. Its stock price has fallen 50% over the past year, as the market focuses on the potential impact of generative AI as a substitute for certain enterprise software services.
On Wednesday morning, OpenAI launched Presence, a tool that helps enterprises set up and run AI agents to automate tasks such as customer service, sales, and employee IT service requests. ServiceNow is integrating AI into its existing products and launching new AI-driven offerings.
ServiceNow reported that its AI business generated over $1 billion in annual contract value (ACV) in the second quarter, and the number of customers with AI agents deployed in production has increased ninefold over the past nine months. The company also signed 123 net new deals with an ACV exceeding $1 million, representing a year-over-year increase of nearly 40%.