Shares in ServiceNow popped on Thursday after the enterprise software maker reported March-quarter earnings and revenue that topped analyst estimates. Revenue guidance for NOW stock met expectations amid volatility in software growth stocks.
Santa Clara, Calif-based ServiceNow reported first-quarter earnings after the market close on Wednesday. ServiceNow stock climbed 8.1% to close at 504.02 on the stock market today.
ServiceNow earnings climbed 16% to $1.76 per share on an adjusted basis. Revenue rose 27% to $1.72 billion, the software maker said.
A year earlier, ServiceNow earned $1.52 a share on sales of $1.36 billion. Analysts expected ServiceNow to report earnings of $1.70 a share on revenue of $1.7 billion for the quarter, which ended March 31.
In addition, ServiceNow said subscription revenue for the period rose 26% to $1.63 billion, topping estimates of $1.62 billion.
"NOW delivered a strong beat considering incremental currency headwinds and macro uncertainty," said Jefferies analyst Samad Samana in a report.
ServiceNow Stock: Revenue Guidance In Line
Heading into the earnings report, ServiceNow stock had declined 27% in 2022.
The enterprise software maker said first-quarter current remaining performance obligations, or CRPO bookings, rose 29% to $5.69 billion. That topped analyst estimates of 28% CRPO growth. CRPO bookings are an aggregate of deferred revenue and order backlog.
ServiceNow said it expects June-quarter subscription revenue in a range of $1.67 billion to $1.675 billion. ServiceNow stock analysts predicted subscription revenue of $1.675 billion.
"NOW delivered a solid March quarter and raised 2022 subscription revenue guidance by a modest amount, above the March quarter upside, despite weaker European macro," said BMO Capital Markets analyst Keith Bachman in a report.
What ServiceNow Does
The company's software tracks and manages services provided by information-technology departments. Its self-service tech portal enables company employees to access administrative and workflow tools.
Further, ServiceNow has expanded from its core business into software for human resources, customer service management and security.
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