2 Stocks Making Shocking Gains After-Hours Wednesday

On a day like today, it's surprising to hear that a few stocks managed to post double-digit percentage gains. After seeing intense volatility throughout the day, only the Dow Jones Industrial Average (^DJI -0.98%) managed to eke out a tiny gain among major market indexes. The Nasdaq Composite (^IXIC -0.64%) and S&P 500 (^GSPC -0.46%) saw significant losses of as much as 2%.

Data source: Yahoo! Finance.

Despite the gloomy market environment, positive news after the closing bell led to substantial rebounds for a couple of companies. Both ServiceNow (NOW -4.03%) and Impinj (PI 28.65%) earned the favor of their investors following their latest financial reports, and as you can see from the analysis of the results below, the big gains could bring longer-term upward trends for the prospects of the two businesses.

ServiceNow keeps growing

Shares of ServiceNow climbed nearly 13% in after-hours trading Wednesday. The software-as-a-service  platform provider for digital workflow management reported third-quarter results that showed it continues to find ways to grow even in a tough environment.

ServiceNow said that revenue rose 21% year over year to $1.83 billion, with subscription revenue seeing a slightly faster growth rate of 22%. Other key metrics were favorable, including an 18% rise in current remaining performance obligations of $5.87 billion.

ServiceNow saw a 60% jump in the number of its customers that pay at least $10 million annually under their contracts, and it now boasts 1,530 customers spending at least $1 million per year for their service. Adjusted net income weighed in at $398 million, working out to $1.96 per share.

The tech company said that its business clients are continuing to move forward in their digital transformation efforts, and ServiceNow is capitalizing on the opportunity to bring in new customers and do more for its existing clients. It also sees its efforts bearing fruit well into the future.

On those lines, ServiceNow's guidance looked favorable. Fourth-quarter subscription revenue should rise 20% to 21% to between $1.834 billion and $1.839 billion. Remaining performance obligations are also expected to grow by about 20% year over year. That could bring more good news in the future, helping the stock that's still 40% below its highs over the past year.

Impinj heads for new highs

Meanwhile, shares of Impinj jumped nearly 18% in after-hours trading. If those gains hold, they would represent a new all-time high for the stock of the Internet of Things cloud connectivity platform provider.

The gains came after a Q3 report that showed solid results in most aspects of its business. Revenue jumped 51% year over year to $68.3 million. Net losses narrowed considerably before typical accounting adjustments, and Impinj reversed a year-earlier adjusted net loss with positive earnings of $0.34 per share.

Co-founder and CEO Chris Diorio pointed to strength in both its endpoint and reader tag chip business segments. Moreover, Diorio said that Impinj had record backlog numbers at the end of September, and he expects strong demand to last well beyond the end of the year into 2023.

Impinj's Q4 guidance also suggested ongoing strength, with revenue expected to be between $71.5 million and $73.5 million and adjusted earnings likely to be between $0.32 and $0.37 per share. The news continues a long streak of better performance than investors have expected, and Impinj has clearly found a niche that it expects to exploit for a long time to come.