Hot Tech stock to watch: ServiceNow Inc (NYSE: NOW)

Free $100 Forex No-Deposit Bonus

ServiceNow Inc (NYSE: NOW) stock surged over 7.7% on 24th October, 2019 (as of 11:43 am GMT-4; Source: Google finance) given better than expected results for the third quarter of FY 19. The company announced that former CEO McDermott would replace ServiceNow chief John Donahoe, who is leaving in January to take the top spot at Nike Inc.

NOW in the third quarter of FY 19 has reported the adjusted earnings per share of $1.03, beating the analysts’ estimates for the adjusted earnings per share of 99 cents, as per analysts surveyed by FactSet. The company had reported the adjusted revenue growth of 34 percent to $899 million in the third quarter of FY 19, beating the analysts’ estimates for revenue of $886 million.

For the third quarter, the company posted the subscription revenues of $835 million, which is 35% year-over-year adjusted growth. This has exceeded the midpoint of the company’s previous projections by $9 million. Subscription billings increased by 29% to 864 million, this has exceeded the midpoint of the company’s prior forecast by 10 million. The company’s remaining performance obligations ended the third quarter at approximately $5.6 billion, which is 36% year-over-year adjusted growth. Current RPO rose 36% to approximately $2.8 billion. The company’s operating margin in the third quarter was 26% on the back of hiring linearity and a shift in expenses that will be realized in the fourth quarter and the free cash flow margin was 14%.

During the third quarter, NOW had closed 46 transactions with more than $1 million in net new annual contract value (ACV), which is a growth of 84% on year-over-year basis. The company now has 809 total customers with more than $1 million in ACV, which is 32% year-over-year increase in customers.

Meanwhile, the company is acquiring the cognitive search capabilities of Attivio, which is an AI-powered answers and insights platform company based in Boston, MA. As part of the transaction, select Attivio R&D employees will also join NOW’s team. Attivio’s market-leading, AI-powered search capabilities is expected to underpin ServiceNow to better understand the meaning behind natural language searches on the Now Platform. By integrating Attivio into the Now Platform, the company intends to increase search natively across the IT, Customer and Employee workflows through the ServiceNow Service Portal, Now Mobile app and Virtual Agent chatbot solution.

 

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.