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ServiceNow (NOW) Reports Q3 Earnings: What Key Metrics Have to Say
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For the quarter ended September 2023, ServiceNow (NOW - Free Report) reported revenue of $2.29 billion, up 25% over the same period last year. EPS came in at $2.92, compared to $1.96 in the year-ago quarter.
The reported revenue represents a surprise of +0.76% over the Zacks Consensus Estimate of $2.27 billion. With the consensus EPS estimate being $2.55, the EPS surprise was +14.51%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how ServiceNow performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Current Remaining Performance Obligations(cRPO) - GAAP: $7.43 billion versus the seven-analyst average estimate of $7.34 billion.
Remaining Performance Obligations(RPO) - GAAP: $14.4 billion compared to the $14.31 billion average estimate based on five analysts.
Revenues- Professional services and other: $72 million compared to the $80.75 million average estimate based on 11 analysts. The reported number represents a change of -19.1% year over year.
Revenues- Subscription: $2.22 billion versus $2.19 billion estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +27.2% change.
Gross Profit (Non-GAAP)- Subscription: $1.87 billion compared to the $1.83 billion average estimate based on 10 analysts.
Gross Profit (Non-GAAP)- Professional services and other: $7 million versus $7.30 million estimated by 10 analysts on average.
Shares of ServiceNow have returned +1.8% over the past month versus the Zacks S&P 500 composite's -1.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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ServiceNow (NOW) Reports Q3 Earnings: What Key Metrics Have to Say
For the quarter ended September 2023, ServiceNow (NOW - Free Report) reported revenue of $2.29 billion, up 25% over the same period last year. EPS came in at $2.92, compared to $1.96 in the year-ago quarter.
The reported revenue represents a surprise of +0.76% over the Zacks Consensus Estimate of $2.27 billion. With the consensus EPS estimate being $2.55, the EPS surprise was +14.51%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how ServiceNow performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Current Remaining Performance Obligations(cRPO) - GAAP: $7.43 billion versus the seven-analyst average estimate of $7.34 billion.
- Remaining Performance Obligations(RPO) - GAAP: $14.4 billion compared to the $14.31 billion average estimate based on five analysts.
- Revenues- Professional services and other: $72 million compared to the $80.75 million average estimate based on 11 analysts. The reported number represents a change of -19.1% year over year.
- Revenues- Subscription: $2.22 billion versus $2.19 billion estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +27.2% change.
- Gross Profit (Non-GAAP)- Subscription: $1.87 billion compared to the $1.83 billion average estimate based on 10 analysts.
- Gross Profit (Non-GAAP)- Professional services and other: $7 million versus $7.30 million estimated by 10 analysts on average.
View all Key Company Metrics for ServiceNow here>>>Shares of ServiceNow have returned +1.8% over the past month versus the Zacks S&P 500 composite's -1.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.