ServiceNow (NOW) on Wednesday reported first-quarter earnings and revenue that topped Wall Street estimates. ServiceNow stock fell as other key financial metrics edged by expectations while guidance came in slightly below views.

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Reported after the market close, ServiceNow said earnings for the quarter ending March 31 rose 44% to $3.41 per share on an adjusted basis from the year-earlier period.

Also, revenue rose 24% to $2.6 billion, the Santa Clara, Calif-based enterprise software maker said.

ServiceNow stock analysts had expected the company to report earnings of $3.14 a share on revenue of $2.59 billion.

In addition, ServiceNow said subscription revenue rose 25% to $2.52 billion, edging by consensus estimate of $2.51 billion.

NOW Stock: Subscription Revenue Outlook Light

ServiceNow’s current remaining performance obligations, or CRPO, came in above expectations. CRPO rose 21% to $8.45 billion. Analysts had projected CRPO of $8.41 billion.

CRPO bookings are an aggregate of deferred revenue and order backlog and serve as a sales growth metric.

On the stock market today, ServiceNow stock fell more than 5% to 708.39.

For the current quarter ending in June, ServiceNow forecast subscription revenue in a range of $2.525 to $2.530 versus estimates of $2.533 billion.

Heading into the ServiceNow earnings report, the software stock had gained 6% in 2024 and 59% over the past 52 weeks.

The company’s software tracks and manages services provided by information-technology departments. Also, its self-service tech portal enables company employees to access administrative and workflow tools.

In addition, ServiceNow has expanded from its core business into software for human resources, customer service management and security.

Meanwhile, ServiceNow hosts an investor day on May 6 in tandem with its Knowledge customer conference. It’s expected to update its artificial intelligence strategy. Further, it may discuss financial goals.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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