ServiceNow, makers of a cloud automation platform used for IT service and other functions, reported[1] first quarter financial results on Wednesday that beat market estimates. The company also announced that it's acquiring SaaS management company VendorHawk.
As for the numbers, ServiceNow posted[2] a net loss of 10.6 million, or six cents a share, on revenue of $589.2 million, up 37 percent from a year ago.
Non-GAAP earnings for the third quarter were 56 cents a share. Wall Street was looking for non-GAAP earnings of 37 cents a share on revenue of $570.3 million.
The company said subscription billings were $638.4 million and grew 33 percent year-over-year. Subscription revenue was $543.3 million, up 40 percent from a year ago.
"Outperformance in the quarter was driven by 21 transactions greater than $1 million in net new annual contract value and continued strength from our entire product portfolio," said ServiceNow CFO Michael Scarpelli.
As for the acquisition[3], ServiceNow plans to VendorHawk's technology to bolster its asset management platform.
"Adding VendorHawk's capabilities to our Software Asset Management service strengthens ServiceNow's unique value, bringing together essential capabilities into a single, comprehensive platform that greatly improves efficiency while still supporting the employee experience," said Farrell Hough, GM of ServiceNow. "Having a real‑time view of all software assets is critical for our customers to consciously rationalize and optimize software spend as they digitally transform."
In a busy day for tech earnings, eBay also reported first quarter financial results. The company posted first quarter net income of $548 million, or 40 cents per share. Non-GAAP earnings were also 53 cents per share with revenue of $2.58 billion, up 12 percent from the same