ServiceNow stock is rising. Third-quarter earnings exceeded guidance.

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Due to better-than-expected third-quarter financial results, the stock rose late on Wednesday.

In the quarter, the workflow software company’s revenue was 1.15 billion U.S. dollars, an increase of 30% over the same period last year, and exceeded the average Wall Street analysts’ expectations of 1.11 billion U.S. dollars and the company’s guidance range of 1,055 million to 1.06 billion U.S. dollars.

Subscription revenue was US$1.09 billion, a year-on-year increase of 31%. The bill was US$1.14 billion, an increase of 25% year-on-year, exceeding expectations of US$995 billion to US$1.015 billion. According to the Non-GAAP report, fully diluted earnings per share were US$1.21, which was higher than the average estimate of US$1.03 per share by Wall Street analysts.

For the fourth quarter, ServiceNow (stock code: NOW) expects subscription revenue from US$1.155 billion to US$1.16 billion, an increase of 28% to 29% year-on-year, and bills of US$1.625 billion to US$1.645 billion, an increase of 25% to 27% year-on-year.

ServiceNow CEO Bill McDermott said in a statement: “Our outstanding third-quarter results exceeded everyone’s expectations, and we are improving our full-year guidance.” “Covid is redefining the future of work, accelerating digital transformation, and Expanding the need to unify systems, silos and processes into the overall corporate workflow… Customers are using Now Platform to create workflows that can provide outstanding experiences for brave veterans, students, knowledge workers, consumers and many around the world other people.”

Gina Mastantuono, ServiceNow’s chief financial officer, added that the company believes that “the momentum into the last quarter of this year is strong”, adding: “Our strong channels give me confidence in our ability to continue execution until 2021.”

In the interview Barron On Wednesday afternoon, McDermott said that the company “beat any Wall Street analysts’ expectations for the third quarter.”

He said: “Covid is defining the future of work and accelerating digital transformation.” “Companies need speed now, which they have never had before. They need to hire new employees, hire new employees and provide them with the tools to get the job done. ”

McDermott said ServiceNow is providing companies with tools to complete the process in a self-service manner, without requiring people to contact call centers and service agents. He added that in the current environment, “it is expected that all work can be done digitally and remotely at a world-class level.”

ServiceNow shares rose 2.5% in late trading to $496.

Write to Eric J.Savitz, email: [email protected]