ServiceNow Inc NOW shares were trading higher on Thursday after the company reported better-than-expected earnings results.
ServiceNow said third-quarter revenue rose 21% year-over-year to $1.83 billion, missing the average analyst estimate of $1.85 billion, according to Benzinga Pro. The company said subscription revenues reached $1.742 billion in the quarter, up 22% year-over-year.
ServiceNow reported quarterly earnings of $1.96 per share, topping the average estimate of $1.85 per share.
“Q3’s outperformance is a testament to the mission-critical nature of our platform and the strong execution of the ServiceNow team. We continue to see a robust pipeline and maintain our investments in hiring growth while the opportunity to in front of us remains enormous,” said Gina MastantuonoCFO of ServiceNow.
ServiceNow also announced that CEO Bill McDermott was named chairman of the company’s board. Founder Fred Luddywho has served as chairman for the past four years, will remain a member of the board.
ServiceNow expects fourth-quarter subscription revenues to be between $1.834 billion and $1.839 billion, representing growth of 20% to 21% year-over-year.
- Morgan Stanley analyst Keith Weiss maintained ServiceNow with an Overweight rating and lowered the price target from $540 to $520.
- Credit Suisse analyst Phil Winslow maintained ServiceNow with an Outperform rating and lowered the price target from $650 to $600.
- Analyst at BMO Capital Keith Bachman maintained ServiceNow with an Outperform rating and raised the price target from $430 to $475.
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NOW Price Action: ServiceNow has a 52-week high of $651.41 and a 52-week low of $337.
The stock was up 14.1% at $418.36 at press time.
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