ServiceNow Forecasts Below Estimates, Plans Monetization Model Shift
Key Points:
* ServiceNow projects annual subscription revenue below Wall Street expectations due to currency headwinds and monetization model changes.
* Company expects a slower first-half performance in its U.S. federal business.
* ServiceNow expands consumption-based monetization to AI and data products.
* Introduces AI Agent Orchestrator tool for coordinating AI agents.
* Revenue for 2025 estimated at $12.64-$12.68 billion, lower than analysts' consensus of $12.83 billion.
* Strong U.S. dollar impacts subscription revenue by $175 million.
* First-quarter subscription revenue projections land between $2.995 billion and $3 billion, below $3.04 billion estimates.
* Fourth-quarter revenue grows 21% to $2.96 billion, in line with expectations.
* Profit per share increases 28% to $1.83 in Q4.