Shares of ServiceNow (NYSE:NOW) shares rose more than 5% intra-day today following the company’s announcement of a fourth-quarter subscription revenue forecast that surpassed Wall Street expectations. The IT management software provider also raised its full-year subscription revenue outlook, driven by continued demand from both new and existing customers.
For the fourth quarter, ServiceNow projected subscription revenue between $2.875 billion and $2.880 billion, exceeding the Street consensus of $2.85 billion. Additionally, the company increased its annual subscription revenue forecast to a range of $10.655 billion to $10.660 billion, up from its previous guidance of $10.575 billion to $10.585 billion.
In the third quarter, ServiceNow reported adjusted earnings per share of $3.72 on revenue of $2.79 billion, beating expectations of $3.45 per share and $2.75 billion in revenue. The company also saw a 16% increase in current remaining performance obligations, reaching $9.36 billion.