ServiceNow Delivers Q3 Beat. Names New COO From Google

ServiceNow (NOW) stock dipped after the enterprise software maker delivered third-quarter earnings and revenue that topped Wall Street targets but offered guidance that underwhelmed investors.

Also, ServiceNow named Amit Zavery, previously Google Cloud Computing vice president, as president, chief product officer and chief operating officer.

Late Wednesday, ServiceNow said its earnings for the quarter ended Sept. 30 rose 27% year over year to $3.72 per share on an adjusted basis. Its revenue rose 22% to $2.8 billion, the Santa Clara, Calif-based company said.

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ServiceNow stock analysts expected the company to report earnings of $3.45 a share on revenue of $2.746 billion.

ServiceNow Stock: Guidance Underwhelms

Additionally, ServiceNow said subscription revenue rose 23% to $2.72 billion, edging above the consensus estimate of $2.66 billion.

Current remaining performance obligations, or CRPO, for ServiceNow also came in above expectations. CRPO rose 26% to $9.36 billion. Analysts had projected CRPO of $9.01 billion.

CRPO bookings are an aggregate of deferred revenue and order backlog and serve as a sales-growth metric.

For the current quarter ending in December, ServiceNow forecast subscription revenue in a range of $2.875 billion to $2.88 billion, just above analyst consensus estimates of $2.855 billion. Also, ServiceNow predicted Q4 CRPO growth of 21.5% year over year.

In extended trading on the stock market today, ServiceNow stock dipped 1.1% to 897.95.

ServiceNow Stock: Moving Into New Markets

Further, heading into the ServiceNow earnings report, the software stock had gained 29% in 2024.

The company’s software tracks and manages services provided by information technology departments. Also, its self-service tech portal enables company employees to access administrative and workflow tools.

In addition, ServiceNow has expanded from its core business. It has branched into software for human resources, customer service management and security.

Moreover, ServiceNow stock holds an IBD Composite Rating of 98, according to IBD Stock Checkup.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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