On a day like today, it is surprising to hear that some stocks have managed to post double-digit percentage gains. After seeing extreme volatility throughout the day, only the Dow Jones Industrial Average (^DJI 0.01%) managed to get a small gain in the main market indices. The Nasdaq Composite (^IXIC) and S&P 500 (^GSPC -0.74%) saw significant losses of up to 2%.
|
Index |
Daily Percentage Change |
Daily Point Change |
|---|---|---|
|
Dow |
+0.01% |
+2 |
|
S&P 500 |
(0.74%) |
(29) |
|
Nasdaq |
(2.04%) |
(228) |
Data source: Yahoo! Finance.
Despite the gloomy market environment, positive news after the closing bell led to a big rebound for some companies. both Service Today (NOW -2.72%) and Imp (PI 1.32%) have gained favor with their investors following their latest financial reports, and as you can see from the analysis of the results below, the large gains could lead to longer-term upward trends for the prospects of the two business.
ServiceNow continues to grow
Shares of ServiceNow climbed nearly 13% in after-hours trading on Wednesday. The software-as-a-service platform provider for digital workflow management reported third quarter results that showed it continues to find ways to grow even in a difficult environment.
ServiceNow said revenue rose 21% year over year to $1.83 billion, with subscription revenue seeing a slightly faster growth rate of 22%. Other key metrics were favorable, including an 18% increase in current outstanding performance obligations of $5.87 billion.
ServiceNow has seen a 60% increase in the number of its customers paying at least $10 million annually under their contracts, and it now boasts 1,530 customers spending at least $1 million annually for their service. Adjusted net income weighed in at $398 million, which came to $1.96 per share.
The tech company said its enterprise clients continue to advance their digital transformation efforts, and ServiceNow is seizing the opportunity to bring in new customers and do more for its existing clients. It also sees its efforts paying off well in the future.
Along those lines, ServiceNow’s guidance looks favorable. Fourth-quarter subscription revenue should rise 20% to 21% to between $1.834 billion and $1.839 billion. The remaining performance obligations are also expected to grow by approximately 20% annually. That could bring more good news ahead, helping the stock still 40% off its year-ago high.
Impinj headed for new highs
Meanwhile, Impinj shares jumped nearly 18% in after-hours trading. If those gains hold, they would represent a new all-time high for the Internet of Things cloud connectivity platform provider’s stock.
The gains came after a Q3 report that showed solid results in most aspects of its business. Revenue jumped 51% year over year to $68.3 million. Net losses narrowed significantly before standard accounting adjustments, and Impinj reversed a year-earlier adjusted net loss with positive earnings of $0.34 per share.
Co-founder and CEO Chris Diorio pointed to strength in both the endpoint and reader tag chip business segments. Additionally, Diorio said Impinj had record backlog numbers at the end of September, and he expects strong demand to last beyond the end of the year into 2023.
Impinj’s Q4 guidance also suggested continued strength, with revenue expected to be between $71.5 million and $73.5 million and adjusted earnings likely to be between $0.32 and $0.37 per share. The news continues a long streak of better-than-expected performance by investors, and it’s clear that Impinj has found a niche that it hopes to exploit for a long time to come.
Dan Caplinger has positions in ServiceNow, Inc. The Motley Fool has a disclosure policy.