By Michael Dabaie
The components of ServiceNow Inc. rose 10.7%, to $ 536.43, in late morning trading after earnings hit above analyst views.
The digital workflow company after the bell on Wednesday reported fourth-quarter total revenue of $ 1.61 billion, up 29% and higher than the FactSet consensus for $ 1.6 billion. Subscription revenue rose 29%, to $ 1.52 billion.
The fixed EPS reached $ 1.46, better than the FactSet consensus of $ 1.43.
ServiceNow led for first quarter subscription revenue of $ 1.61 billion to $ 1.615 billion for 25% growth and full -year subscription revenue of $ 7.02 billion to $ 7.04 billion for 26% growth.
“In light of the recent software bear market, investors are worried that there will be a collapse in the basics as we leave the pandemic. But the results at ServiceNow show what our core research in our coverage, and that is the fundamentals remain very good, ”JP Morgan said in an analyst note.
Truist Securities said the core strength drove strong momentum in 2022.
“Despite the FX headwinds coming from their global presence, the company continues to make beat-and-raise quarters that benefit from both new customers and significant upsell. Although the core performance in the quarter was over all driven from the strength of their core offer, commentary on The Call has led us to gradually become optimistic about new product opportunities in the coming year, ”Truist said.
Stifel said in a note that “Net/net expects that ServiceNow’s rapidly expanding platform, growing pipeline, and huge deal momentum should allow the company to maintain 20%+ revenue growth and significant expansion of margin in the coming years. “
Write to Michael Dabaie at [email protected]
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