By Denny Jacob


ServiceNow Inc. shares rose 13% to $413.59 in after-hours trading Wednesday after the company guided for higher subscription revenue growth.

The enterprise cloud computing solutions provider forecast subscription revenue between $1.83 billion to $1.84 billion in the fourth quarter, a 20% to 21% year-over-year increase. The company also forecast subscription revenue between $6.865 billion to $6.87 billion for full-year 2022, a 23% increase from a year earlier.

Analysts polled by FactSet expected $1.87 billion in the fourth quarter and $6.92 billion for full year 2022.

"We continue to see a robust pipeline and are maintaining our investments in growth hires as the opportunity in front of us remains enormous," said Chief Financial Officer Gina Mastantuono.

The results come after the company issued its third-quarter results. ServiceNow logged net income of $80 million, or 39 cents a share, for the quarter ended Sept. 30, up from $63 million, or 31 cents a share, a year earlier. Adjusted earnings were $1.96 a share, above analysts' estimates of $1.85.

Revenue rose to $1.83 billion from $1.51 billion. Analysts polled by FactSet expected $1.85 billion.


Write to Denny Jacob at denny.jacob@wsj.com


(END) Dow Jones Newswires

10-26-22 1649ET