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Compared to Estimates, ServiceNow (NOW) Q1 Earnings: A Look at Key Metrics

Zacks Equity Research
·2-min read

For the quarter ended March 2023, ServiceNow (NOW) reported revenue of $2.1 billion, up 21.7% over the same period last year. EPS came in at $2.37, compared to $1.73 in the year-ago quarter.

The reported revenue represents a surprise of +0.36% over the Zacks Consensus Estimate of $2.09 billion. With the consensus EPS estimate being $2.04, the EPS surprise was +16.18%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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Here is how ServiceNow performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenues- Professional services and other: $72 million versus $95.70 million estimated by 10 analysts on average. Compared to the year-ago quarter, this number represents a -20.9% change.

  • Revenues- Subscription: $2.02 billion versus the 10-analyst average estimate of $2 billion. The reported number represents a year-over-year change of +24.1%.

  • Gross Profit (Non-GAAP)- Subscription: $1.73 billion compared to the $1.69 billion average estimate based on 10 analysts.

  • Gross Profit (Non-GAAP)- Professional services and other: $2 million versus $8.52 million estimated by 10 analysts on average.

View all Key Company Metrics for ServiceNow here>>>

Shares of ServiceNow have returned +3.1% over the past month versus the Zacks S&P 500 composite's +2.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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ServiceNow, Inc. (NOW) : Free Stock Analysis Report

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Zacks Investment Research