NOW - Why ServiceNow Stock Was Sliding Today
2024-04-25 15:05:00 ET
Shares of ServiceNow (NYSE: NOW) were moving lower today after the software-as-a-service company beat estimates in its first-quarter earnings report but offered revenue guidance for the full year that was slightly below analyst expectations. Additionally, there may be concerns about its valuation getting stretched after the stock had run up in the last several months, so it was easy for a slight miss to prompt a sell-off. As a result, the stock was down 5.1% as of 12:55 p.m. ET.
Revenue in the quarter rose 24% to $2.6 billion, which essentially matched estimates at $2.59 billion. Subscription revenue rose 25% to $2.5 billion, and current remaining performance obligations, a reflection of the work that's booked for the next year, were up 21% to $8.45 billion, showing demand remains solid.
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Why ServiceNow Stock Was Sliding Today