ServiceNow Inc (NOW) delivered impressive third-quarter financial results, exceeding analysts’ expectations and showcasing the company’s robust growth trajectory. The software giant reported revenue of $2.797 billion for the quarter, surpassing the consensus estimate of $2.743 billion. This translates to a 22% year-over-year increase in total revenue, driven by a 23% jump in subscription revenues.
The company’s strong performance also extended to its bottom line. ServiceNow reported adjusted earnings per share of $3.72, exceeding analyst estimates of $3.46. This success is attributed to the company’s strategic focus on delivering AI-powered solutions that streamline business processes and drive efficiency for its customers.
Fueling this growth is the increasing adoption of ServiceNow’s platform across diverse industries. The company revealed that it now boasts 2,020 customers with annual contract values exceeding $1 million, marking a 14% year-over-year increase. This signifies a growing trust in ServiceNow’s ability to empower businesses with cutting-edge technology.
Building on its impressive performance, ServiceNow raised its full-year revenue guidance, demonstrating its confidence in sustained growth. The company expects subscription revenue to reach between $10.655 billion and $10.66 billion for the year.
To further solidify its position as a leader in the enterprise software space, ServiceNow appointed Amit Zavery, a seasoned software industry veteran, as president, chief product officer, and COO. Zavery’s expertise will play a pivotal role in guiding ServiceNow’s product development and engineering strategies.
In addition to its strong financial performance, ServiceNow also announced several strategic partnerships with industry giants like Nvidia, Snowflake, Databricks, Rimini Street, and Person. These collaborations aim to strengthen ServiceNow’s ecosystem and further enhance the value it delivers to its customers.
While ServiceNow’s stock dipped slightly in after-hours trading, the company’s strong Q3 earnings and positive outlook suggest a bright future for the cloud-based platform provider. The continued demand for its AI-powered solutions, coupled with its strategic partnerships and leadership appointments, position ServiceNow to maintain its momentum in the rapidly evolving enterprise software market.