ServiceNow Inc (NASDAQ:NOW) stock fell 1.70% (As on April 27, 11:37:22 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 23. NOW has raised its annual sales forecast, delivering an optimistic signal for a software industry that has been shaken by customers’ slowing demand for technology over recent quarters. Subscription revenue will jump more than 23% to as much as $8.52 billion this year. The forecast is a slight increase from ServiceNow’s January guidance and topped analysts’ average estimate. For the current period ending in June, subscription revenue will be about $2.04 billion, also narrowly exceeding estimates. The  first-quarter subscription revenue increased 24% to $2.02 billion. Analysts, on average, projected $2 billion, according to data compiled by Bloomberg. Currency fluctuations dampened growth by three percentage points, but currency impacts should end this year and may even turn to a small tailwind.

NOW in the first quarter of FY 23 has reported the adjusted earnings per share of $2.37, beating the analysts’ estimates for the adjusted earnings per share of $2.04. The company had reported the adjusted revenue growth of 22 percent to $2.14 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $2.08 billion. Diverging from other large tech firms, ServiceNow earlier committed to no job cuts in 2023. Current remaining performance obligations (“cRPO”) of $7.01 billion as of Q1 2023, representing 23% year-over-year growth, 25% adjusted for constant currency. The company now has 1,682 total customers with more than $1 million in annual contract value, representing 20% year-over-year growth in customers.

Separately, ServiceNow said Deborah Black, vice president of engineering at Netflix Inc., will join the company’s board. Former US Army Chief Information Officer Raj Iyer was named head of ServiceNow’s global public sector business.

During the quarter, ServiceNow launched a major platform expansion with the Utah release. The latest version of the intelligent, end-to-end platform for digital transformation includes new features such as AI-powered process mining with robotic process automation (RPA) capabilities, additional search enhancements, expanded Workforce Optimization, and Health and Safety Incident Management.ServiceNow also expanded its telco industry expertise with a new global Telecommunications Network Inventory product developed in partnership with AT&T.  In addition, ServiceNow announced notable customer relationships. UNHCR, the UN Refugee Agency, partnered with ServiceNow, BT, and Thirdera to set up a new regional call center for refugees fleeing Ukraine to access protection and support services.