ServiceNow Inc (NYSE:NOW) a provider of cloud-based solutions, has released their quarterly earnings results on Wednesday after market closed and has surpassed expectations. Share of the company jumped more than 15% after the release.
The tech company has reported earnings per share of $0.09, above Reuters’ expectations of $0.07. Revenue stands on $305.90 million for the quarter, above the $300.87 million average analyst estimate. This is an increase of 44% year over year, driven by strong demand for new business and an impressive 97% renewal rate. ServiceNow reported Net income of $14 million, or $0.09 per basic and diluted share, which is a very strong improvment compared to net income of $2 million, or $0.02 per basic and $0.01 per diluted share in the prior year.
CEO of ServiceNow, Frank Slootman, explained, “Our Global 2000 business continues to grow at a consistently high rate, with 22 net new customers during the quarter, including Top Test Steel Limited and the Bank of Ireland. Our average ACV per Global 2000 customer was 906,000, a 4% sequential increase and a 21% year-over-year increase… upsells continue to be a leading growth factor as current customers expand their ServiceNow usage. We now have 249 customers, each with annualized contract values in excess of $1 million, an annual increase of 48%. We landed a record 13 upsells in the quarter, each with new ACV greater than $1 million.”