Photo Credit: Donny Gonzo/Flickr.com

Last month, ServiceNow (NOW) reported its first quarter results that soared past market expectations. Its outlook was marginally shy of the market’s expectations due to continued macro pressures.

ServiceNow’s Financials

For the first quarter of the year, ServiceNow’s revenues grew 24% to $2.6 billion, ahead of the market’s forecast of $2.59 billion. EPS of $3.41 grew 44% and was ahead of the market’s estimates of $3.14.

By segment, subscription revenues rose 25% to $2.52 billion, ahead of the consensus estimate of $2.51 billion. Professional and other services revenues grew 11% to $80 million. Current remaining performance obligations rose 21% to $8.45 billion, again ahead of the analyst expectations of $8.41 billion.

For the second quarter, ServiceNow expects subscription revenues of $2.525-$2.53 billion. The market was looking for subscription revenues of $2.533 billion.

ServiceNow’s Q1 Acquisitions

Last quarter, ServiceNow announced the acquisition of Israel-based Artinet’s NetACE, a network management and automation technology solution. With the acquisition, ServiceNow hopes to deliver added focus on accelerating business transformation for telecommunications companies.

Post integration with the Now platform, NetACE capabilities will allow telecom companies access to a comprehensive, end-to-end network lifecycle management platform. Terms of the acquisition were not disclosed. As part of the acquisition, Atrinet has also become a certified ServiceNow Consulting and Implementation Partner.

ServiceNow also announced the acquisition of 4Industry, a Netherlands-based partner known for its manufacturing technology application that has been built on the Now Platform.

4Industry was founded in 2018 and has built a mobile-enabled application that helps make shop floor work more intuitive, efficient, and enjoyable through a suite of digital tools. ServiceNow will integrate 4Industry’s solution to offer a new Connected Worker solution on the ServiceNow platform by 2025. Terms of the deal were not disclosed.

To continue to deepen its operational technology focus, ServiceNow also acquired Smart Daily Management from EY. EY’s solution was designed to improve manufacturing efficiency by integrating data-driven insights and effective ways of working into daily activities of operating teams. By leveraging this tool, ServiceNow will help maximize the ability across manufacturing and operations technology functions to deploy and scale value.

Overall, these acquisitions show ServiceNow’s commitment to expanding its vertical-focused offerings as it makes bigger inroads into key industrial markets such as manufacturing, energy, transport, logistics, and telecommunications.

ServiceNow’s stock has recently been seen trading at 52-week high levels of around $758.15 with a market capitalization of approximately $155.4 billion. It has recovered from the 52-week low of $494.13 that it had fallen to a year ago.

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