ServiceNow Inc (NYSE: NOW) stock fell over 5.1% on 29th April, 2021 (as of 09:41:17 UTC-4 · USD; Source: Google finance) after the company added fewer big contracts than in previous quarters. ServiceNow has added just 53 new customers with a net annual contract value of more than $1 million in the quarter. In the previous quarter, the company had added 89 contracts with big-spending customers. In total, the company now has more than 1,146 customers with an annual contract value of more than $1 million, up 23% from a year ago. Current remaining performance obligations was of $4.4 billion as of Q1 2021, which represents 33% year-over-year growth, 29% adjusted for constant currency
The company has delivered strong growth with its subscription revenue, which rose by 30% compared to the year ago quarter, to $1.29 billion. That has beaten Wall Street’s guidance of $1.28 billion in subscription revenue.
Meanwhile, in March, the company had announced a major new release of its Now Platform, the Quebec release, which added new low-code tools that can be used by workers with limited coding ability to build software applications. With the Now Platform Quebec release, ServiceNow is helping organizations be more agile and adept at new ways of working. Leveraging one unified platform and data model, customers can continually monitor and optimize business processes to proactively identify and avoid bottlenecks and empower employees to work in an increasingly distributed fashion, as returning to the office becomes an option for some organizations. Further, the Now Platform Quebec release keeps work flowing with advanced AIOps capabilities and gives customers deeper insights into their digital operations to minimize and fix incidents before they become issues, delivering consumer‑grade AI‑driven experiences that harness personalized insights to help organizations work smarter and faster
In addition, the company has also announced a partnership with the experience management software provider Qualtrics International Inc. to bring more sentiment data from customers into its customer and information technology workflows. In April, NOW has made a key acquisition with robotic process automation startup Intellibot.