:ServiceNow on Wednesday forecast second-quarter subscription revenue below market expectation as businesses spend cautiously in a tough economy, sending the cloud software provider's shares down nearly 5 per cent in trading after the bell.
It expects subscription revenue between $2.525 billion and $2.530 billion in the second quarter, below estimates of $2.54 billion, according to LSEG data. Strong adoption of GenAI has also driven gross margin higher, he added. Total gross margin stood at 80 per cent in the first quarter, compared with 79 per cent, a year ago.
The company provides software for use by technical support staff inside big businesses. ServiceNow said last month it used Nvidia's tools to create a"copilot" to help solve corporate IT problems.