Service Today (NOW) on Wednesday reported September-quarter earnings that topped analyst estimates while missing profit amid headwinds from currency exchange rates. NOW stock rose on news amid strength in ServiceNow’s federal government business.
X
Santa Clara, Calif-based ServiceNow said third-quarter earnings climbed 26% to $1.96 per share on an adjusted basis. Revenue rose 21% to $1.83 billion, the enterprise software maker said.
Analysts expect ServiceNow to report earnings of $1.85 per share on revenue of $1.85 billion. A year earlier, ServiceNow earned $1.55 per share on sales of $1.51 billion.
In addition, ServiceNow said subscription revenue for the period rose 22% to $1.72 billion, missing estimates of $1.75 billion. TODAY the stock climbed 9.2% to near 400 in extended trading on the stock market today.
ServiceNow Stock Is Down 43% This Year
Heading into the earnings report, ServiceNow stock is down 43% in 2022.
The enterprise software maker said third-quarter current remaining performance obligations, or CRPO bookings, rose 18% to $5.87 billion. CRPO bookings are an aggregate of deferred revenue and order backlog.
Analysts had estimated CRPO bookings at $5.96 billion on 20% growth.
ServiceNow said it expects December-quarter subscription revenue of about $1.836 billion at mid-point guidance. ServiceNow stock analysts forecast subscription revenue of $1.873 billion. The company forecasts CRPO growth of 20% compared to estimates for 22% growth.
The company’s software monitors and manages the services provided by information-technology departments. Its self-service tech portal allows company employees to access administrative and workflow tools.
Additionally, ServiceNow has expanded from its core business into software for human resources, customer service management and security.
NOW the stock has a Relative Strength Rating of 29 out of a possible best of 99, according to the IBD Stock Check-up.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
YOU MAY ALSO LIKE:
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools & Analysis
Learn How To Time The Market With IBD’s ETF Market Strategy
IBD Live: A New Tool For Daily Stock Market Analysis
Want To Make Quick Profits And Avoid Big Losses? Try SwingTrader