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service now on Wednesday raised its full-year subscription revenue forecast as its enterprise customers adopt cloud-based software with artificial intelligence.
ServiceNow shares rose greater than 7% in prolonged trading and have gained 3.5% to this point this 12 months, but have lagged the S&P 500 index.
Growing demand for workflow automation and the corporate’s ongoing efforts in generative AI helped ServiceNow proceed to grow.
Analysts expect strong U.S. federal business and increasing use of AI software to offset the impact of the uncertain economy on the corporate.
ServiceNow also announced that it had acquired search and query platform Raytion, but didn’t disclose the worth of the transaction.
In addition, the corporate announced a strategic investment in Prodapt, a provider of digital and network services to the telecommunications and technology industries.
As a results of an internal investigation, ServiceNow’s board of directors concluded that policies were violated within the hiring of the previous Chief Information Officer of the US Army.
ServiceNow added that the person has left the corporate and that Chief Operating Officer CJ Desai and the corporate have also mutually agreed that he’ll resign from all positions effective immediately.
According to LSEG data, the corporate forecast full-year subscription revenue of between $10.575 billion and $10.585 billion, above analysts’ estimates of $10.565 billion.
The company had previously forecast subscription revenue for the total 12 months to be between $10.560 billion and $10.575 billion.
On an adjusted basis, the corporate earned $3.13 per share for the quarter, in comparison with an estimated profit of $2.84 per share.
