ServiceNow said in its third-quarter results release that total revenue reached $4.106 billion, up 20.5% year over year, as its forecast pointed to slower contracted revenue growth next quarter. The quarter ended Sept. 30, and the company announced its results Oct. 28.
Subscription revenue was $3.988 billion, up 21% from a year earlier. Current remaining performance obligations (cRPO), the value of contracted work ServiceNow expects to recognize as revenue over the coming year, stood at $13.65 billion, up 21% in constant currency.
ServiceNow's latest outlook calls for cRPO growth of 18.5% in the fourth quarter, measured in constant currency. The company recorded a 21% increase in the third quarter. In its previous quarterly outlook, it had set a 20% target for that measure, leaving the reported result one percentage point above its projection.
CNBC reported that ServiceNow shares fell 27% Thursday, linking the decline to the earnings release and renewed investor concerns about AI's effect on established software companies. EconoTimes also covered the move in its report on the post-earnings share decline.
