ServiceNow stock edged up late Wednesday after the enterprise software maker late Wednesday reported second-quarter earnings and revenue that topped Wall Street estimates as software growth stocks seek to regain momentum.
For the quarter ending June 30, ServiceNow earnings came in at $1.42 per adjusted share, up 15% from a year earlier. Revenue rose 32% to $1.41 billion, the Santa Clara, Calif-based company said.
A year earlier, ServiceNow (NOW) earned $1.23 a share on sales of $1.05 billion. Analysts expected ServiceNow earnings of $1.21 a share on revenue of $1.36 billion.
In addition, ServiceNow said subscription revenue rose 31% to $1.33 billion, topping estimates of $1.29 billion. For the September quarter, ServiceNow forecast subscription revenue of about $1.4 billion, above estimates of $1.39 billion.
ServiceNow Stock On IBD Leaderboard
ServiceNow stock is up 6% thus far in 2021 and about 34% from a year ago. The software maker said it had 1,201 customers with more than $1 million in annual contract value revenue, up 25% from a year earlier, as of June 30.
Heading into the ServiceNow earnings report, the software stock traded within a buy zone after forging a double-bottom entry point of 565.39. 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.
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.
In addition, ServiceNow said current remaining performance obligations, or contract revenue that will be recognized as revenue in the next 12 months, was $4.7 billion as of June 30. That represents 34% year-over-year growth.
Analysts say demand in financial services, health care and government agencies has been a bright spot for ServiceNow stock.
ServiceNow Expands From Core Market
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.