Jan 29 (Reuters) - ServiceNow ( NOW ) forecast annual

subscription revenue below Wall Street estimates on Wednesday,

affected by a strong U.S. dollar and a planned shift in its

monetization model.

The Santa Clara, California-based company also expects its

U.S. federal business to be slower in the first half of the year

"due to seasonality from the change in presidential

administration".

ServiceNow ( NOW ) said it would expand its consumption-based

monetization model, where clients pay based on their actual

usage of a product or service, across its artificial

intelligence (AI) and data products this year.

Enterprise clients turn to AI-powered software offered by

companies such as ServiceNow ( NOW ) to manage their IT services and

automate certain business operations.

ServiceNow ( NOW ) on Wednesday also unveiled AI Agent Orchestrator,

a tool designed to coordinate a fleet of AI agents, which are

software programs designed to automate tasks and work without

constant human intervention.

Rival Salesforce ( CRM ) and software giant Microsoft ( MSFT )

are also betting on AI agents to drive revenue growth.

ServiceNow ( NOW ) expects its annual subscription revenue for 2025

to be in the range of $12.64 billion to $12.68 billion, compared

with analysts' average estimate of $12.83 billion, according to

data compiled by LSEG.

The company said that the strength in the U.S. dollar would

impact its subscription revenue by about $175 million this year.

ServiceNow ( NOW ) also expects first-quarter subscription revenue

to be between $2.995 billion and $3 billion, compared with

estimates of $3.04 billion.

The revenue for the fourth quarter ended Dec. 31 rose

about 21% from a year earlier to $2.96 billion, which was in

line with estimates.

The company said its profit per share rose about 28% to

$1.83 in the fourth quarter.