ServiceNow Inc NOW shares traded higher in Wednesday’s after-hours session 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.
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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 13.30% in after-hours at $415 at press time.
Image: Donny Gonzo from Flickr.