ServiceNow Earnings: Here’s Why Shares are Down Now

ServiceNow, Inc. (NYSE:NOW) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.23%.

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ServiceNow, Inc. Earnings Cheat Sheet

Revenue: Rose 81.11% to $85.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ServiceNow, Inc. reported adjusted EPS loss of $0.01 per share. By that measure, the company beat the mean analyst estimate of $-0.03. It beat the average revenue estimate of $82.11 million.

Quoting Management: “The first quarter was a strong start to 2013. We exceeded our previously stated outlook on revenue and non-GAAP earnings per share, added 128 net new customers and achieved a customer renewal rate of 96%,” said Frank Slootman, president and chief executive officer, ServiceNow. “We also continued to penetrate our existing customer base, with upsells comprising a third of our annual contract value signed in the quarter.”

Key Stats (on next page)…

Revenue increased 14.29% from $75.16 million in the previous quarter. EPS decreased to $-0.01 in the quarter versus EPS of $0.00 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.01 to a loss $0.02. For the current year, the average estimate has moved down from a profit of $0.01 to a loss of $0.02 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)