Photo Credit: Donny Gonzo / Flickr.com
 

Earlier last week, ServiceNow (NYSE: NOW) reported its second-quarter results that continued to surpass market expectations. Like everyone else, ServiceNow is also stepping up its efforts within the AI space and announced several new features along with an acquisition.
 

ServiceNow’s Financials

For the second quarter of the year, ServiceNow’s revenues grew 23% to $2.15 billion, ahead of the market’s forecast of $2.13 billion. EPS of $2.37 was also slightly ahead of the market’s estimates of $2.05.

By segment, subscription revenues grew 25% to $2.07 billion and professional and other services revenues fell 20% to $75 million.

ServiceNow expects subscription revenues of $2.185-$2.195 billion, compared with the market’s forecast of $1.39 billion. The market was looking for total revenues of $2.22 billion for the quarter.
 

ServiceNow’s G2K Acquisition

ServiceNow recently reported the acquisition of Munich-based AI-powered platform G2K. G2K’s technology gives retailers the ability to connect real-time data across storefronts and other physical spaces and uses AI to translate that data into meaningful insights.

As part of the acquisition, ServiceNow will integrate G2K’s smart IoT technology into the Now Platform, allowing businesses to action digital and in-store data with enterprise-grade workflows. Businesses will be able to leverage the technology to plan inventory based on demand, improve on-site customer experiences, address in-store maintenance or other mechanical issues, and increase employee productivity.

The integration will make ServiceNow one of the only companies that provide enterprise-grade retail workflows, therefore enabling businesses to seamlessly bridge the physical world into the digital workflow platform. G2K was founded by Karsten Neugebauer and Omar El Gohary in 2013. Its recent financial details and the acquisition terms are not known.

Besides the acquisition, ServiceNow is also gearing up on its internal AI offerings. In the last quarter, it delivered several new features and embedded generative AI across its platform. It announced further generative AI capabilities by adding case summarization and text-to-code capabilities. These new capabilities of Now Assist are compatible with all workflows and are aimed at improving productivity and efficiency.

The case summarization feature uses generative AI to sift through case information across IT, HR, and customer service cases, including customer or incident details, history, and the resolution, to create case summary notes. The text-to-code feature will allow developers to generate code by asking for code suggestions in natural language.

It also announced the introduction of its AI Lighthouse program with Nvidia and Accenture to assist customers across industries in the design, development, and implementation of new generative AI use cases. It recently expanded its partnership with KPMG to develop AI offerings in the areas of finance, supply chain, and procurement operations.

Its stock is currently trading at $583 with a market capitalization of $118.9 billion. It hit a 52-week high of $614.36 in July and a 52-week low of $337 in October last year.

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