ServiceNow shares are up nearly 5% after revenue tops estimates

ServiceNow Inc. NOW, -3.15% shares were up nearly 5% in after-hours trading Wednesday after the collaborative-software company reported fiscal third-quarter revenue that edged Wall Street estimates. ServiceNow reported net income of $12.9 million, or 7 cents a share, compared with net income of $40.6 million, or 22 cents a share, in the year-ago quarter.

Revenue soared 30% to $1.15 billion from $885.8 million a year ago. “We’re seeing digital transformation is accelerating because there is a redefining of working from home, amplifying the need to unify systems, silos, and processes into holistic enterprise workflows,” ServiceNow Chief Executive Bill McDermott told MarketWatch after the results were announced. ServiceNow raised full-year guidance after disclosing it has 1,012 customers with more than $1 million in annual contract value, up 25% year-over-year. That included 41 such transactions in the third quarter. Analysts surveyed by FactSet had expected net income of $1.03 a share on revenue of $1.1 billion. ServiceNow shares are up nearly 72% this year as it continues to feel the effects of the pandemic. The broader S&P 500 index SPX, -3.52% has inched up 1% in 2020.