5 Stocks That Beat Profit Expectations

2. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 91

Shares of ServiceNow, Inc. (NYSE:NOW) slipped nearly two percent in the after-hours trading session on Wednesday, 27 October 2021, despite delivering strong results for the third quarter. The California-based software company reported adjusted earnings of $1.55 per share, up from $1.21 per share in the comparable period of 2020.

Revenue for the quarter came in at $1.51 billion, compared to $1.15 billion in the year-ago quarter. Analysts were expecting ServiceNow, Inc. (NYSE:NOW) to report earnings of $1.39 per share on revenue of $1.48 billion.

If we look at the key growth indicators, the company’s subscription revenue of $1.43 billion and subscription billings of approx. $1.38 billion in the quarter were also ahead of the consensus forecast.

For the fourth quarter, ServiceNow, Inc. (NYSE:NOW) expects subscription revenue of approx. 1.52 billion and billings of about $2.31 billion. This compares to the consensus forecast of 1.51 billion for subscription revenue and $2.31 billion for billings.

Discussing the results, CFO Gina Mastantuono said:

“Q3 was another fantastic quarter with continued outperformance across all of our growth and profitability guidance metrics. The consistency of our results exemplifies the strength of our product portfolio and the team’s focus on building deep customer relationships. We are well positioned as the workflow standard on our journey to becoming a $15+ billion revenue company.”