ServiceNow Inc (NYSE:NOW) stock rose 11.79% (As on October 27, 11:54:56 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 22. The company also reported subscription revenue of $1.74 billion during the quarter, up 22% from a year before. As of September 30, 2022, current remaining performance obligations (“cRPO”), contract revenue that will be recognized as revenue in the next 12 months, was $5.87 billion, representing 18% year-over-year growth and 25% adjusted for constant currency. The company now has 1,530 total customers with more than $1 million in annual contract value, representing 22% year-over-year growth in customers. The number of customers paying over $10 million in annual contract value in Q3 2022 grew 60% year-over-year. The company has closed 69 deals greater than $1 million in net new ACV in the quarter, including five with new logos. Operating margin was 26%, driven by the top line beat and operating efficiencies. The free cash flow margin was 6%. The company has ended the quarter with a healthy balance sheet, including $5.5 billion in cash and investments.

NOW in the third quarter of FY 22 has reported the adjusted earnings per share of $1.96, beating the analysts’ estimates for the adjusted earnings per share of $1.85. The company had reported the adjusted revenue growth of 21 percent to $1.83 billion in the third quarter of FY 22, missing the analysts’ estimates for revenue of $1.85 billion.

For the fourth quarter, ServiceNow is expecting subscription revenue to come in at $1.83 billion to $1.84 billion. That was below Wall Street’s forecast of $1.87 billion in subscription revenue. The company also lowered its full-year subscription revenue guidance to $6.87 billion, down from an earlier target of $6.92 billion.

ServiceNow had a busy quarter on the product front, announcing a major refresh of its flagship workflow automation platform with the Now Platform Tokyo release. It also boosted its observability platform Lightstep with the addition of a Unified Query Language to enable observability-as-code. Lightstep will likely get some additional new capabilities soon, following ServiceNow’s acquisition of a startup called Era Software Inc.

In addition, ServiceNow’s board of directors gave McDermott a solid vote of confidence, appointing him as the company’s new chairman. He takes over the role from ServiceNow founder Fred Luddy, who will remain on the company’s board.