5 Stocks That Beat Quarterly Expectations

1. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 87

ServiceNow, Inc. (NYSE:NOW) is best known for its cloud-based solutions that help enterprises manage digital workflows. Its cloud-based platform manages and automates services for day-to-day operations. In short, the company’s solutions enable more intelligent and faster ways to make a workflow.

Shares of ServiceNow, Inc. (NYSE:NOW) jumped more than 14 percent in the pre-market trading session on Thursday, January 27, 2022, after delivering impressive profit and sales for the fourth quarter.

ServiceNow, Inc. (NYSE:NOW) reported adjusted earnings of $1.46 per share for the three months ended December 31, compared to $1.17 per share in the same period of 2020. Revenue for the quarter increased to $1.61 billion, up from $1.25 billion in the comparable period last year.

Subscription revenue accounted for most of the quarterly sales, climbing 29 percent on a year-over-year basis to $1.52 billion. The results easily exceeded analysts’ average forecast of $1.43 per share for earnings and $1.6 billion for revenue.

Looking forward, ServiceNow, Inc. (NYSE:NOW) expects subscription revenue in the range of $1.61 to $1.615 billion for the first quarter. For the full year, it expects subscription revenue between $7.02 – $7.04 billion, compared to expectations of $7.02 billion.

Speaking on the results, CFO of ServiceNow, Inc. (NYSE:NOW), Gina Mastantuono, said:

“Q4 was an outstanding quarter closing out an already phenomenal year of outperformance. The company is firing on all cylinders and we enter 2022 with tremendous momentum. We expect constant currency subscription revenue growth to accelerate year‑over‑year in Q1, setting us up for another strong year and putting us well on our way to becoming a $15 billion plus revenue company.”

You can also take a peek at Billionaire Michael Hintze Portfolio: Top 10 Stock Picks and Top 10 Stock Picks of Thomas Bancroft’s Makaira Partners.

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