ServiceNow Delivers Q2 Earnings Beat, Highlights 'Unprecedented Demand,' Taps Nvidia For AI Lighthouse Launch, Shares Slide

ServiceNow Inc NOW shares are slipping lower in Wednesday’s after-hours session on the back of the company’s quarterly results.

• Q2 Revenue: $2.15 billion beat estimates of $2.13 billion
• Q2 EPS: $2.37 beat estimates of $2.05

Revenues were up 23% year-over-year. The company said it ended the quarter with 45 customers with more than $20 million in ACV, up 55% year-over-year. 

“ServiceNow results were supercharged by unprecedented demand for our organic innovation. We’re in a powerful new ‘AI world,’ where imagination is the only limit,” said Bill McDermott, chairman and CEO of ServiceNow.

Outlook: ServiceNow raised its third-quarter subscription revenue guidance to a range of $2.185 billion to $2.195 billion, representing year-over-year growth of 25.5% to 26%. The company also guided for a third-quarter operating margin of 27% versus 25% in the second quarter. 

Management will hold a conference call to discuss these results at 5 p.m. ET.

See Also: Chipotle Shares Get Burnt After Company Serves Up Mixed Q2 Earnings

What Else: ServiceNow also announced that it teamed up with Nvidia and Accenture for the launch of AI Lighthouse, a program designed to fast-track the development and adoption of enterprise generative AI capabilities.

AI Lighthouse will bring together ServiceNow’s enterprise automation platform and engine with Nvidia AI supercomputing and software and Accenture AI transformation services.

“This is a transformational moment for business to revolutionize how work gets done,” McDermott said.

NOW Price Action: ServiceNow shares were down 3.03% at $560 at the time of publication, according to Benzinga Pro.