Servicenow (Now.us) actions rose 10 % In the session prior to the opening of the market today, after the report of results of the first quarter of 2025 of the company, which was better than expected.
As leader in business software, Servicenow is recognized for its workflow based on AI that optimizes operations. The company exceeded market expectations in all key commercial metrics.
Servicenow Results of 1T 2025
- Total income: 3,090 million dollars, 19 % more year -on -year (compared to 3,080 million dollars scheduled)
- Subscription income: 3.005 million dollars, 19 % more year -on -year (20 % in constant currency)
- Gross benefit: 2,440 million dollars (Gross Margin of 79 %, slightly less than 80 % year -on -year due to cost increase)
- Operating benefit: 451 million dollars, 36 % more year -on -year
- Net profit: 460 million dollars, compared to the 347 million dollars of the previous year
- Diluted action benefit: 2.20 dollars compared to $ 1.67 in the same period of the previous year
- Behavión per adjusted action: $ 4.04, exceeding market expectations
Customer portfolio expansion
- 508 clients with an annual contractual value (stroke) exceeding 5 million dollars, compared to 425 last year
- 72 transactions with a new stroke greater than 1 million dollars during the first quarter
- Contractual income (remaining execution obligations): 10 310 million dollars, 22 % more year -on -year
- Strategic initiatives that drive growth
The company remains optimistic about its prospects. Subscription income and professional services are expected to grow in absolute terms, maintaining their current participation in total income. Innovations in AI and global expansion will continue to be the central axis of the Servicenow strategy. With a growing business client base and a stable flow of recurring income, Servicenow is well positioned to benefit from the long -term trends driven by AI.
Servicenow Actions (daily graphic)
The shares had fallen almost 35% from their maximums, but since then they have grinding strongly. An opening close to $ 900 suggests that the action could test the 200 -day exponential average (EMA200, red line) in today’s session.
Source: xStation5
The Servicenow assessment is still demanding, but the company continues to demonstrate high growth foundations. Consequently, traditional valuation multiples, such as the price-benefit (P/E), do not seem to be an alert signal for most long-term investors.
Source: XTB Resarch, Bloomberg Finance L.P.
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