ServiceNow's Q2 AI Business Annual Contract Value Exceeds $1 Billion

Odaily reported that enterprise software company ServiceNow released its earnings, with subscription revenue increasing 25% year-over-year to $3.9 billion, exceeding TD Cowen's estimate of approximately $3.8 billion. Current remaining performance obligations reached $13.2 billion, surpassing TD Cowen's expectation of $13 billion.

ServiceNow raised its full-year subscription revenue guidance to between $15.76 billion and $15.78 billion, with the upper end of the range in line with TD Cowen's forecast. The company's stock price has declined 50% over the past year, as the market focuses on the impact of generative AI replacing certain enterprise software services.

OpenAI released Presence on Wednesday morning, helping enterprises set up and run AI agents for automating tasks such as customer service, sales, and employee IT service request handling. ServiceNow is integrating AI into its existing products and launching new AI-driven offerings.

ServiceNow stated that its AI business annual contract value exceeded $1 billion in the second quarter, and the number of customers deploying AI agents in production has increased ninefold over the past nine months. The company also signed 123 net-new annual contract value transactions exceeding $1 million, up nearly 40% year-over-year.