Information technology services management company ServiceNow Inc. today posted solid first-quarter earnings that comfortably beat expectations.

The company further impressed investors when it said it’s confident that it will top $10 billion in annual revenue for the first time this year despite the economic damage caused by the coronavirus pandemic.

ServiceNow reported a first-quarter profit before certain costs such as stock compensation of $1.06 per share on revenue of $1.046 billion, up 33% from the same period a year ago. Wall Street had been looking for a 96-cent profit on revenue of $1.02 billion.

ServiceNow sells a cloud automation platform for companies looking to automate parts of their business that involve service delivery. Examples include a customer-facing service that provides technical support to users, or an internal service that provides company laptops to new employees.

That software is clearly in demand, as the company reported that its bookings in the quarter rose 30% from a year ago. Subscription revenue rose 34% in the same period. During the quarter, the company added 37 new transactions worth at least $1 million in net new annual contract value. The company now counts 933 customers with more than $1 million in contract value.

As for its outlook, the company offered encouraging guidance that factored in what’s known about the impact of the COVID-19 pandemic. It said it’s expecting subscription revenue growth of 29% to 30% in the second quarter, while its full-year subscription revenue is likely to grow by 27%.

That was clearly music to the ears of ServiceNow’s investors, as the company’s stock rose more than 7% in after-hours trading.

ServiceNow Chief Executive Bill McDermott (pictured), who joined late last year, said the company had been able to take advantage of the coronavirus pandemic by engaging with customers in new ways that enable them to focus on their most critical workflows.

“Businesses are splitting apart old value chains and reassembling them in end-to-end, mobile-first experiences on the Now Platform,” McDermott said in a statement. “Our Q1 results are a direct reflection of ServiceNow’s unique position as the workflow platform to create great employee and customer experiences, even in these challenging conditions.”

There was better news yet from Chief Financial Officer Gina Mastantuono, who said the company remains on track to hit its annual revenue target of $10 billion.

“In Q1, we exceeded the high end of our guidance for subscription revenues and billings and delivered another strong quarter of operating profit and free cash flow,” Mastantuono said. “With our recurring revenue model, we are in a strong financial position to manage through near-term uncertainties and for long-term growth.”

Constellation Research Inc. analyst Holger Mueller told SiliconANGLE that with ServiceNow’s expansion from ticketing systems to a full workflow platform now well under way, it’s well positioned to partner enterprises that are going through tumultuous times.

“Growing more than 30% shows the health of its business,” Mueller said. “The next quarters will show if ServiceNow can be that partner and keep growing while nations, industries and enterprises are struggling.”

Photo: World Economic Forum/Flickr