If you are a regular customer? reader of this publication, chances are you know that it hasn’t been a great year for many tech stocks – one in which giants like Meta, Amazon and Alphabet have been torn apart by the markets after less than stellar earnings reports.
Even a loyal company like Salesforce is being chased by activist investors.
The fact is, few have been spared, be it startups or established public companies. We’ve seen a litany of stories about employee freezes, layoffs and tech stocks take bigger hits than an NFL quarterback behind a bad offensive line — in other words, getting crushed.
SaaS stocks in particular are having a tough year, so if a SaaS stock is doing well, that’s news. And that’s what happened to ServiceNow this week when it reported Q32022 earnings.
It beat odds with a mostly positive earnings report – good earnings, good guidance, the whole nine yards – and believe it or not, Wall Street rewarded the company, up more than 13% at the bell on Thursday, a number that kept stable throughout the day. (It was down about 1% in today’s trading so far.)
Maybe we’re not the only ones looking for some good news. Maybe so are investors. But what led to this positive revenue anomaly in 2022? To find out, let’s take a look at the earnings report and the impact of hiring former SAP CEO Bill McDermott to lead the company.
A look at the numbers
Given the general carnage we’ve seen this quarterly cycle in the public tech revenue markets – Snap started business with a raspberry, quickly followed by other leading tech stores that failed to live up to Wall Street’s austere expectations – the boomlet of the ServiceNow stock price caught our eye and made us curious about what the company had accomplished that was so commendable by investors.