ServiceNow stock slipped Wednesday after the enterprise software maker reported third-quarter earnings that topped Wall Street estimates while revenue guidance edged by expectations.
For the quarter ended Sept. 30, ServiceNow earnings came in at $1.55 per adjusted share, up 28% from a year earlier. Revenue rose 31% to $1.51 billion, the Santa Clara, Calif-based company said.
A year earlier, ServiceNow (NOW) earned $1.21 a share on sales of $1.15 billion. Analysts expected ServiceNow earnings of $1.39 a share on revenue of $1.48 billion.
In addition, ServiceNow said subscription revenue rose 31% to $1.43 billion, topping estimates of $1.41 billion. For the September quarter, ServiceNow forecast subscription revenue in a range of $1.515 billion to $1.52 billion, just above estimates of $1.51 billion.
“(ServiceNow stock) is down slightly in the aftermarket as investors likely wanted more upside and feel they got paid before the print,” RBC Capital analyst Matthew Hedberg said in a report to clients.
ServiceNow stock fell 4.2% to near 637 in after-hours action on the stock market today.
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.
ServiceNow Stock Trades Below Entry Point
Shares of ServiceNow are up more than 21% thus far in 2021, outperforming many software growth stocks. Heading into the earnings report, ServiceNow stock traded below an entry point of 681.20.
In addition, ServiceNow stock belongs to the IBD Leaderboard. The Leaderboard is IBD’s curated list of leading stocks that stand out on technical and fundamental metrics.
Further, ServiceNow has expanded from its core business into software for human resources, customer service management and security.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.