ServiceNow’s revenue in the fourth quarter jumped 31% and earnings were better than expected amid strong demand.
The company reported fourth quarter revenue of $1.25 billion with non-GAAP earnings of $1.17 a share (8 cents a share GAAP).
Wall Street was looking for fourth quarter revenue of $1.21 billion with non-GAAP earnings of $1.05 a share.
CEO Bill McDermott said ServiceNow closed 89 transactions worth more than $1 million in net new annual contract value. Overall, ServiceNow has 1,093 customers with annual contract values topping $1 million.
McDermott added that ServiceNow is seeing gains due to “secular tailwinds of digital transformation, cloud computing, and business model innovation.” Indeed, ServiceNow, which is aiming to be a $10 billion revenue company, has expanded from IT service management to HR to industries and COVID-19 vaccine management as it extends its platform.
Fourth quarter developments include:
ServiceNow said it saw adoption across its IT, employee and customer workflow businesses and strength in AI and machine learning.
For 2020, ServiceNow delivered revenue of $4.52 billion, up 31%, with net income of $119 million, or 59 cents a share.
ServiceNow’s fourth quarter in a nutshell.
