Shares of ServiceNow nose-dived more than 16 percent in after-hours trading over a weaker-than-expected revenue outlook for 2016 for the cloud-based software services company, which topped $1 billion in annual revenue for the first time in 2015.
Santa Clara-based ServiceNow lost $37.4 million on revenue of $285.7 million during its fourth quarter that ended in December. In the year ago fourth quarter, ServiceNow lost $44.7 million. Revenue jumped 44 percent.
For all of 2015, ServiceNow generated $1.01 billion in revenue, up 47 percent from 2014. The company lost $198.4 million in 2015, more than the $179.4 million it lost in 2014.
We marked a huge milestone in 2015, Frank Slootman, ServiceNow chief executive officer, said, referring to the $1 billion revenue mark the company achieved last year.
The company now has 230 customers that each pay ServiceNow more than $1 million in annual contract value.
But it was ServiceNow s guidance that spooked investors and caused shares to plunge in the extended session.
For all of 2016, revenue is expected to range from $1.34 billion to $1.37 billion. At best, that would only equal Wall Street s predictions of $1.37 billion in revenue this year.
Revenue guidance for the first quarter is expected to range from $298 million to $303 million, which is above the $297.8 million that analysts were anticipating.
In the regular trading session, ServiceNow closed at $75.37, which was 16 percent below the 52-week high of $89.99, reached on Dec. 4.
Photo: Frank Slootman, ServiceNow Chief Executive Officer
Photo courtesy of ServiceNow executive team photographs
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