ServiceNow (NOW) reported $2.8 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 22.3%. EPS of $3.72 for the same period compares to $2.92 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $2.74 billion, representing a surprise of +2.06%. The company delivered an EPS surprise of +7.51%, with the consensus EPS estimate being $3.46.

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: $9.36 billion versus the four-analyst average estimate of $9.1 billion.

• Remaining Performance Obligations (RPO) - GAAP: $19.5 billion versus the three-analyst average estimate of $18.41 billion.

• Revenues- Professional services and other: $82 million versus the nine-analyst average estimate of $78.15 million. The reported number represents a year-over-year change of +13.9%.

• Revenues- Subscription: $2.72 billion versus the nine-analyst average estimate of $2.66 billion. The reported number represents a year-over-year change of +22.5%.

• Gross Profit (Non-GAAP)- Subscription: $2.31 billion versus the eight-analyst average estimate of $2.24 billion.

• Gross Profit (Non-GAAP)- Professional services and other: $5 million versus $9.05 million estimated by eight analysts on average.

View all Key Company Metrics for ServiceNow here>>>

Shares of ServiceNow have returned -0.6% over the past month versus the Zacks S&P 500 composite's +2.7% 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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