ServiceNow (NOW) reported $2.96 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 21.3%. EPS of $3.67 for the same period compares to $3.11 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $2.95 billion, representing a surprise of +0.13%. The company delivered an EPS surprise of +2.51%, with the consensus EPS estimate being $3.58.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how ServiceNow performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Current Remaining Performance Obligations(cRPO) - GAAP: $10.27 billion versus the four-analyst average estimate of $10.45 billion.
• Remaining Performance Obligations (RPO) - GAAP: $22.3 billion versus the three-analyst average estimate of $22.17 billion.
• Revenues- Professional services and other: $91 million versus the nine-analyst average estimate of $77.75 million. The reported number represents a year-over-year change of +26.4%.
• Revenues- Subscription: $2.87 billion versus the nine-analyst average estimate of $2.88 billion. The reported number represents a year-over-year change of +21.2%.
• Gross Profit (Non-GAAP)- Subscription: $2.42 billion compared to the $2.40 billion average estimate based on eight analysts.
• Gross Profit (Non-GAAP)- Professional services and other: $7 million versus $8.32 million estimated by eight analysts on average.

View all Key Company Metrics for ServiceNow here>>>

Shares of ServiceNow have returned +10.4% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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