Shares of ServiceNow (NYSE:NOW) rose more than 3% during Thursday’s pre-market trading in response to their recently announced Q3 results and an upward revision in guidance.
For Q3, the company reported an EPS of $2.92, surpassing the Street expectation of $2.56. The revenue surged 25% year-on-year to $2.29 billion, higher than the anticipated $2.27 billion. Within this, subscription revenues reached $2.216 billion, marking a 27% growth. The company’s current remaining performance obligations also exhibited growth, increasing by 27% from the previous year to stand at $7.43 billion.
Looking ahead, ServiceNow projects its Q4/23 subscription revenues to fall between $2.320 billion and $2.325 billion, indicating a growth of roughly 24.5%-25% from the previous year. For the entire year, they anticipate subscription revenues to range between $8.635 billion and $8.640 billion, which would mean an approximate 25.5% year-on-year increase.