Shares of ServiceNow (NOW) tanked 12% in intraday Thursday, as the software and IT services provider posted slower subscription revenue growth than it had forecast earlier and projected a slight decline in first-quarter growth.

The company forecas🐷t first quarter 2025 subscriptio🐽n revenue of between $2.995 billion and $3 billion, an 18.5%-19% rise year-over-year.

That came after ServiceNow said fourth-quarter subscription revenue gained between 21% to $2.87 billion, below its own forecast laid out during the 澳洲幸运5开奖号码历史查询:third quarter of between 21.5% and 22% year-over-year growth. The fourth-quarter subscription revenue also trailed the $2.88 billion consensus estimate by analysts polled by Visible Alpha. 

CEO McDermott Sees Huge Gains from AI Demand

Otherwise, results for the fourth quarter were mixed. Fourth-quarter revenue of $2.96 billion — in line with estimates from analysts polled by Visible Alpha—marked a 21% year-over-year surge. Fourth-quarter adjusted 澳洲幸运5开奖号码历史查询:earnings per share (EPS) of $3.67 also beat estimates of $3.65.

The company was optimistic about the prospects for its 澳洲幸运5开奖号码历史查询:artificial intelligence (AI) platform, with 澳洲幸运5开奖号码历史查询:Chief Executive Officer (CEO) Bill McDermoﷺtt saying that the emerg꧑ing technology “is fueling a top to bottom re‑ordering of the enterprise technology landscape."

ServiceNow said it now has almost 500 clients with contracts of $5 million in value, or annual contract value, per year. ServiceNow shares are up aroundꦯ 28% in the past year.

UPDATE—Jan. 30, 2025: This article has been updated with fresh share prices.