Cloud-based services provider ServiceNow, Inc. (NOW) Wednesday reported a wider loss for the fourth quarter, as higher expenses more than offset a surge in revenues. Loss per share narrowed from the previous year and on an adjusted basis, the company reported breakeven per share. The stock rose nearly 9 percent in the after-hours trading.
Net loss for the quarter was $9.93 million or $0.08 per share, compared to a net loss of $6.96 million or $0.32 per share for the year-ago quarter. The number of shares used to calculate earnings increased to 124,000,655 from 21,515,078.
Excluding items, net loss was $0.6 million or $0.00 per share while it totaled $3.72 million or $0.17 per share last year.
On average, 11 analysts polled by Thomson Reuters expected a loss of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues surged 92 percent to $75.16 million from $39.18 million. Analysts expected revenues of $70.56 million for the fourth quarter.
Subscription revenues surged to $62.89 billion from $34.56 million while Professional services and other revenues climbed to $12.28 million from $4.62 million.
Deferred revenue climbed 15 percent from the end of the previous quarter to $170.4 million. Excluding deferred revenue, backlog jumped 81 percent from the end of 2011 to $379.0 million.
Total operating expenses increased to $52.39 million from $28.37 million with sharp increases in Sales and marketing as well as research and development expenses.
Looking forward to the first quarter, the company forecast a loss of $0.04 to $0.05 per share and revenues of $81.5 million to $82.5 million. Analysts currently expect the company to report a loss of $0.01 per share on revenue of $78.09 million for the first quarter.
For full year 2013, the company expects revenue in the range of $387 million to $392 million. Analysts currently expect the company to post revenue of $368.27 million for 2013.
NOW closed down 4.1 percent at $28.97 on Wednesday, but gained 8.7 percent in the extended trade and was at $31.50.
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