What To Expect From ServiceNow’s (NOW) Q3 Earnings
Enterprise workflow software maker ServiceNow (NYSE:NOW) will be announcing earnings results tomorrow after market hours. Here’s what you need to know.
ServiceNow met analysts’ revenue expectations last quarter, reporting revenues of $2.63 billion, up 22.2% year on year. It was a very strong quarter for the company, with accelerating growth in large customers and an impressive beat of analysts’ EBITDA estimates. It added 55 enterprise customers paying more than $1m annually to reach a total of 1,988.
Is ServiceNow a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting ServiceNow’s revenue to grow 20% year on year to $2.75 billion, slowing from the 25% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.45 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ServiceNow has missed Wall Street’s revenue estimates twice over the last two years.
With ServiceNow being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for productivity software stocks. However, there has been positive investor sentiment in the segment, with share prices up 4.8% on average over the last month. ServiceNow’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $931.60 (compared to the current share price of $922.88).
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