ServiceNow Stock Gains After-Hours On Q3 Earnings: Here's Why

ServiceNow, Inc. NOW shares are trading higher in Wednesday's after-hours session after the company reported better-than-expected third-quarter financial results and issued guidance.

What To Know: The company posted earnings of $2.92 per share, beating the $2.56 estimate. Revenues clocked in at $2.29 billion, beating the estimate of $2.27 billion.

The company also reported subscription revenues of $2.2 billion, representing 27% year-over-year growth, and 24.5% in constant currency.

ServiceNow issued fourth-quarter subscription revenue guidance between $2.32 billion and $2.325 billion. Full-year 2023 subscription revenues are anticipated to be between $8.63 billion and $8.64 billion.

"We've released more than 5,000 new capabilities this year, including generative AI for the use cases that matter most to our customers. Innovation drives growth. This is a highly unique, differentiated company that is reshaping business as the intelligent super platform for the enterprise," said ServiceNow Chairman and CEO Bill McDermott.

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NOW Price Action: Shares of NOW were up 5.14% at $558.36 in the after-hours session at the time of publication, according to Benzinga Pro.

Image by James Osborne from Pixabay.