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ServiceNow (NOW) posted a strong first quarter earnings result, beating revenue and earnings expectations as government cost-cutting efforts fueled demand. ServiceNow president and CFO Gina Mastantuono joins Catalysts to discuss the company's earnings print.
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Well, ServiceNow benefited from the government's cost-cutting push during the first quarter with revenue and earnings that beat the street's expectations. The company also offering strong guidance signaling a solid demand in the software space. Joining us now with more, Gina Mastantuono, president and CFO of ServiceNow. Gina, great to speak with you. Thank you for making the time this morning. This stat really stood out to me, 30% higher sales in the public sector. Explain to me how a government efficiency push is driving an increase in government spending at ServiceNow.
Well, thanks so much for having me here, Madison. So, first of all, you know, I'm just so, so proud of the team and the execution to deliver this incredible quarter. So it's all about elite level execution at this rate and AI acceleration which really helped us deliver that outstanding quarter. We beat our guidance on all top-line growth and profitability metrics. Subscription revenue at 20%, backlog at 22%, EPS up 18 and a half percent. So a solid quarter across the board and yes, really proud of our public sector growth at 30%. And you're exactly right. Um, federal agencies are really focused on modernizing and elevating how they serve the government and the American people. And what I would say is that driving outcomes, improving auditability, and eliminating millions of hours and dollars is exactly what the ServiceNow platform helps them deliver. And so now more than ever these government agencies really need a tech platform that helps simplify the complexity and lets them become digital first. And that's exactly what the ServiceNow platform enables.
