Photo Credit: Donny Gonzo / Flickr.com

ServiceNow (NYSE: NOW) recently reported its first quarter results that continued to outpace market expectations. Like several others, ServiceNow is also betting on the AI space and integrated several helpful AI tools within the latest release of its platform.

ServiceNow’s Financials

For the first quarter of the year, ServiceNow’s revenues grew 22% to $2.1 billion, ahead of the market’s forecast by 0.34%. EPS of $2.37 grew 37% over the year and was also ahead of the market’s estimates by 16%.

By segment, subscription revenues grew 24% to $2.02 billion and professional and other services revenues fell 21% to $72 million. It now has 1,682 customers generating more than $1 million in ACV and reported a renewal rate of 98%.

For the second quarter, ServiceNow forecast subscription revenues of $2.040-$2.045 billion. The market expected ServiceNow to deliver subscription revenues of $2.03 billion. For the fiscal year, it expects subscription revenues of $8.47-$8.52 billion.

ServiceNow’s AI Move

Like others in the tech space, ServiceNow is also leveraging Generative AI technology. Recently, it announced the Utah release, its latest upgrade. The latest release adds a feature called AI Search that is focused on making it faster and easier for support teams to handle requests. The AI engine will help them find documentation that explains the issue. It can aggregate technical data from multiple systems and prioritizes data based on its relevance to each user’s work. The AI algorithms are able to analyze how workers interact with search results and make adjustments so as to deliver a more relevant search result every time.

ServiceNow also updated an existing AI tool called Document Intelligence that can automatically extract information from documents and input it into a company’s business applications. The process reduces time and errors associated with manual data entry. The latest version of Document Intelligence can more accurately extract information from large spreadsheet tables and checkboxes.

ServiceNow also rolled out a new Operational Resilience Workspace that provides data about cybersecurity vulnerabilities, outages, and other technical issues within the organization’s network. The dashboard can highlight affected systems. It provides administrators with access to automation playbooks that can automatically carry out routine security tasks, such as scanning servers for malware to accelerate breach remediation.

Its stock is currently trading at $450.041 with a market capitalization of $91.8 billion. It hit a 52-week high of $521.58 in August last year and a 52-week low of $337.00 in October last year.

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