Driven by continued growth in subscription revenue, ServiceNow released better-than-expected third-quarter financial results on Wednesday. The company consists of a cloud automation platform for IT services and other functions. Its non-GAAP earnings per share were US$1.21 and revenue was US$1.15 billion, an increase of 30% from the same period last year.
Wall Street expects non-GAAP earnings per share of $1.03 and revenue of $1.11 billion.
ServiceNow said that subscription fees in the third quarter were $1.08 billion, an increase of 25% year-on-year. Subscription revenue was US$1.07 billion, a year-on-year increase of 29%. As of the end of the quarter, ServiceNow had 1,012 customers with an annual contract value of more than $1 million, a year-on-year increase of 25%.
ServiceNow CEO Bill McDermott said: “Our outstanding third-quarter results exceeded everyone’s expectations, and we are improving our full-year guidance.”
As for the prospects, ServiceNow said that in the fourth quarter, subscription revenue will be between $1.141 billion and $1.146 billion, and subscription fees will be between $1.61 billion and $1.63 billion.
ServiceNow Chief Financial Officer Gina Mastantuono said: “In the challenging pandemic environment, the third quarter is an amazing quarter for ServiceNow.” “We went beyond the high-end of subscription revenue and subscription billing guidance, emphasizing our products. The strength of the combination and the ability to meet the ever-changing needs of customers. Overall, we see that the strong momentum will continue into the last quarter of this year, and the strong channels make me confident in our ability to continue execution through 2021.”
After the market, ServiceNow’s stock price rose by –%.
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