ServiceNow Inc (NYSE:NOW) stock rose 5.70% (As on October 24, 11:29:34 AM UTC-4, Source: Google Finance) after the company lifted its full-year guidance after reporting third-quarter results that beat Wall Street estimates. The company reported strong third-quarter sales and bookings as the software company expands its suite of AI tools. Subscription sales, which account for the bulk of ServiceNow’s revenue, increased 23% to $2.7 billion in the period, the company said. Current remaining performance obligation, a measure of booked sales, increased 26% in the period ending Sept. 30. Both exceeded analysts’ estimates. The company’s main generative AI assistant product, Now Assist, is the fastest-growing in company history, as per the company. The average contract premium for users of Now Assist is 30%. Further, the company saw a spike in large deals worth more than $5 million in annual contract value. As of September 30, 2024, current remaining performance obligations (“cRPO”), contract revenue that will be recognized as revenue in the next 12 months, was $9.36 billion, representing 26% year‑over‑year growth and 23.5% in constant currency. The company now has 2,020 total customers with more than $1 million in annual contract value (“ACV”), representing 14% year‑over‑year growth in customers.

Meanwhile, NOW has announced a global collaboration to supercharge workforce development and employee experiences in the age of AI. In the first phase of the multi-year deal, ServiceNow will collaborate with Pearson on research and insights that analyze how emerging technology will impact the global workforce and will use Credly by Pearson to issue accreditation and track skills development. Pearson will use ServiceNow’s AI-powered Now Platform to boost employee productivity, efficiency, and talent retention.

NOW in the third quarter of FY 24 has reported the adjusted earnings per share of $3.72, beating the analysts’ estimates for the adjusted earnings per share of $3.45. The company had reported the adjusted revenue growth of 22 percent to $2.79 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $2.75 billion.

For Q4, the company forecast subscription revenue in a range of $2.875B to $2.880B, with cPRO growth expected at 21.5% from a year earlier. Analysts are expecting Q4 revenue of $2.94B. The company expects near-term bookings to rise 21.5%.

For the full-year, Servicenow sees revenue in a range of $10.655B to $10.660B, up from a prior forecast of $10.575B to $10.585B.