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Investing.com - ServiceNow reported first-quarter results ahead of Wall Street expectations on strong subscription revenue and a currency tailwind, sending its shares up more than 8% in premarket U.S. trading on Thursday.
The enterprise software company posted adjusted earnings per share of $4.04, beating analysts’ average estimate of $3.83.
Revenue rose to $3.09 billion, slightly ahead of the $3.08 billion consensus.
ServiceNow (NYSE:NOW) said it exceeded the high end of its subscription revenue guidance for the quarter, helped by a weaker U.S. dollar, which provided a currency benefit.
The Santa Clara, California-based company said it is only partially incorporating the first-quarter outperformance and foreign exchange boost into its full-year outlook to account for potential geopolitical risks.
"While our business remains strong, we are only flowing through part of those benefits into our full-year outlook," the statement said.
In a note to clients, analysts at Jefferies led by Samad Samana said: "While the macro choppiness will likely continue, ServiceNow has shown that sharp execution and resilient demand for its high-return on investment products should allow it to navigate it better than most."
(Scott Kanowsky contributed reporting.)