By Denny Jacob
Shares of ServiceNow Inc. rose 13% to $413.59 in after-hours trading on Wednesday after the company guided for higher subscription revenue growth.
The enterprise cloud computing solutions provider forecast subscription revenue between $1.83 billion to $1.84 billion in the fourth quarter, a 20% to 21% year-over-year increase. The company also forecasts subscription revenue between $6.865 billion to $6.87 billion for full-year 2022, a 23% increase from a year earlier.
Analysts polled by FactSet expected $1.87 billion in the fourth quarter and $6.92 billion for the full year of 2022.
“We continue to see a solid pipeline and we are maintaining our investments in growth hires as the opportunity in front of us remains enormous,” said Chief Financial Officer Gina Mastantuono.
The results came after the company released its third quarter results. ServiceNow logged net income of $80 million, or 39 cents a share, for the quarter ended Sept. 30, up from $63 million, or 31 cents a share, a year earlier. Adjusted earnings were $1.96 per share, above analysts’ estimates of $1.85.
Revenue rose to $1.83 billion from $1.51 billion. Analysts polled by FactSet had expected $1.85 billion.
Write to Denny Jacob at [email protected]