- ServiceNow Inc. shares suffered a record intraday drop after the company gave an outlook for quarterly subscription sales that met analysts’ estimates, but failed to quell Wall Street’s anxieties that artificial intelligence will disrupt the software maker.
- Subscription revenue will grow as much as 23% in the period, about in line with Wall Street estimates. Current remaining performance obligations, a measure of bookings, will expand more than 18% in the period ending in December, the company said Wednesday in a statement. That fell just shy of analysts’ average projection of 19%, according to data compiled by Bloomberg.
- The Santa Clara, California-based company is fighting to prove it can make money from AI and ward off new competition. While ServiceNow is known for tools to help corporations manage their technology support operations, it’s expanding into new arenas such as customer management and cybersecurity.
- The shares plunged as much as 25% to $112.37 after markets opened in New York on Thursday, their biggest intraday drop since it went public in 2012.