.July 25, 2024 08:54 AM

ServiceNow (NYSE:NOW) saw a 6% increase in share price pre-market after announcing higher annual subscription guidance and strong fiscal Q2 results. COO CJ Desai left, with Chris Bedi taking over as interim Chief Product Officer. The company reported earnings of $3.13 per share on revenue of $2.63 billion, beating Wall Street estimates.

Subscription revenues for Q2 grew by 23% to $2.54 billion, driven by new business acquisitions. ServiceNow recorded 88 transactions exceeding $1 million in net new annual contract value, a 26% increase year-over-year, boosting its backlog significantly.

ServiceNow’s remaining performance obligations reached $18.6 billion in Q2, a 31% growth year-over-year. The company raised its subscription revenue guidance to $2.66 billion to $2.67 billion, up from the previous range of $2.525 billion to $2.530 billion.