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ServiceNow Reports Strong Q2, Raises Q3 Growth Outlook

ServiceNow released better-than-expected second-quarter results and raised its third-quarter growth outlook.

The company reported revenue of $1.41 billion in the second quarter, up 27% from a year ago. ServiceNow posted a net income of $59 million, or 29 cents per share, in the second quarter. Non-GAAP earnings for the quarter were $1.42 per share.

Wall Street originally forecast second-quarter revenue of $1.36 billion on a non-GAAP profit of $1.22 per share.

ServiceNow closed the quarter with 1,201 customers and a contract value of more than $1 million, an increase of 25% over the previous year. Subscription revenues totaled $1.33 billion.

CEO Bill McDermott said ServiceNow is seeing strong demand as companies transform their workflows to digitize.

ServiceNow CFO Gina Mastantuono said the company is seeing robust demand across all products and regions.

As for the outlook, ServiceNow forecasts third-quarter subscription revenue of $1.4 billion to $1.405 billion, or 28% to 29% growth. ServiceNow forecasts subscription revenue of $5.53 billion to $5.54 billion in 2021.

ServiceNow was able to sell its Now Platform in more use cases and workflows.

For more information, read the original story in ZDNet.

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