ServiceNow up 10% in extended trading: here’s the catalyst

Shares of ServiceNow Inc (NYSE: NOW) jumped 10% in extended trading after the software reported market-beating results for its fiscal fourth quarter.

Q4 financial results

ServiceNow said its net income printed in Q4 printed at $26 million that translates to 13 cents per share. On an adjusted basis, it earned $1.46 a share versus the year-ago figure of $1.17 a share, as per the earnings press release.

The cloud company generated $1.61 billion in the recent quarter – an increase from $1.25 billion last year. According to FactSet, experts had forecast $1.43 of adjusted EPS on $1.60 billion in revenue. According to CEO Bill McDermott:

Guidance for the future

For the full financial year, ServiceNow forecasts $7.02 billion to $7.04 billion in subscription sales, out of which, about $1.615 billion are expected in the current quarter. Subscription sales in Q4 came in at $1.52 billion.

In comparison, analysts had called for $1.62 billion in Q1 subscription revenue and $7.02 billion for the full year. As per Futurum Research’s Daniel Newman:

Also on Wednesday, ServiceNow promoted its chief product and engineering officer, CJ Desai, to chief operating officer.