ServiceNow Third Quarter 2022 Earnings: EPS Beats Expectations, Revenues Lag

ServiceNow (NYSE:NOW) Third Quarter 2022 Results

Key Financial Results

• Revenue: US$1.83b (up 21% from 3Q 2021).
• Net income: US$80.0m (up 27% from 3Q 2021).
• Profit margin: 4.4% (up from 4.2% in 3Q 2021).
  • The increase in margin was driven by higher revenue.
• EPS: US$0.40 (up from US$0.32 in 3Q 2021).

All figures shown in the chart above are for the trailing 12 month (TTM) period

ServiceNow EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) exceeded analyst estimates by 48%.

Looking ahead, revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Software industry in the US.

Performance of the American Software industry.

The company's shares are up 17% from a week ago.

Risk Analysis

You still need to take note of risks, for example - ServiceNow has 1 warning sign we think you should be aware of.

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