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Why ServiceNow, Inc. Shares Soared

Steve Symington
January 30, 2014

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of IT infrastructure specialist ServiceNow, (NYSE: NOW) jumped 14% Thursday, after at least four analysts chimed in with positive notes on the stock following its latest quarterly earnings announcement.

So what: Fourth-quarter revenue rose 67% year-over-year to $125.2 million, which translated to an adjusted net loss of $3 million, or $0.02 per share. Analysts, on average, were expecting the company to report a quarterly net loss of just $0.01 per share, but on lower revenue of $120.25 million.

In the current quarter, ServiceNow expects revenue in the range of $133 million and $135 million, also well above expectations for $131 million. Better yet, ServiceNow projects full-year 2014 sales of $640 million to $645 million, compared to estimates for just $611 million.

The perfo