ServiceNow Inc (NYSE:NOW) shares are trading lower in Wednesday's after-hours session after the Company reported mixed financial results.
ServiceNow said second-quarter revenue increased 24% year-over-year to $1.75 billion, which slightly missed the estimate of $1.76 billion, according to data from Benzinga Pro. The Company reported quarterly adjusted earnings of $1.62 per share, which beat the estimate of $1.54 per share.
Subscription revenues totaled $1.658 billion in the quarter, representing 25% growth year-over-year. ServiceNow said it expects third-quarter subscription revenues to be between $1.75 billion and $1.755 billion. The Company expects full-year subscription revenues of $6.915 billion to $6.925 billion, an operating margin of 25%, and a free cash flow margin of 30%.
ServiceNow said it has a larger-than-average customer cohort renewing in the fourth quarter.
"As a result, Q3 2022 will experience approximately 2 points of headwinds to cRPO growth as the contractual obligations wind down. We expect that cohort to renew in Q4 2022, at which time those headwinds will subside and we expect cRPO growth to re-accelerate quarter-over-quarter," the Company said.
NOW Price Action: ServiceNow has a 52-week high of $651.41 and a 52-week low of $406.47.
The stock was down 5.44% in after-hours at $422.90 at press time.
Photo: Donny Gonzo from Flickr.