ServiceNow (NOW)’s Revenue Grew 29% Year-Over-Year in Q3

Lakehouse Capital, an investment management company, released its “Lakehouse Global Growth Fund” October 2022 monthly letter. A copy of the same can be downloaded here. October was a busy month for the fund, and it returned 3.4% net of fees and expenses compared to a 6.6% return for the MSCI All Country World Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Lakehouse Capital discussed stocks like ServiceNow, Inc. (NYSE:NOW) in the October 2022 monthly letter. Headquartered in Santa Clara, California, ServiceNow, Inc. (NYSE:NOW) is a software company that provides enterprise cloud computing solutions. On November 14, 2022, ServiceNow, Inc. (NYSE:NOW) stock closed at $400.40 per share. One-month return of ServiceNow, Inc. (NYSE:NOW) was 12.22%, and its shares lost 42.18% of their value over the last 52 weeks. ServiceNow, Inc. (NYSE:NOW) has a market capitalization of $80.881 billion.

Lakehouse Capital made the following comment about ServiceNow, Inc. (NYSE:NOW) in its Q3 2022 investor letter:

“Despite a challenging environment, US-based software company ServiceNow, Inc. (NYSE:NOW) performed well and reported revenues of $1.8 billion for the quarter, up 29% year-over-year in constant currency terms. The company’s operational metrics continue to be resilient, with remaining performance obligations growing 25% yearon-year in constant currency terms, total customers with over $1 million in annual contract value (ACV) growing 22%, and renewal rates holding firm at 98%. Performance was evenly spread across segments, products, and geographies, with notable strength in the US federal, which had its best quarter ever including a $20 million-plus net new ACV win. The company now boasts 1,530 customers generating in excess of $1 million in ACV, which is pleasing to see as it implies multiple solutions are involved and that the company’s platform model is increasingly resonating with customers. We continue to believe that ServiceNow is one the highest quality software businesses around as the combination of consistent growth at scale, robust free cash flow generation and a large addressable market make it a compelling opportunity.”

ServiceNow, Inc. (NYSE:NOW) is in 16th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 99 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of the second quarter which was 90 in the previous quarter.

We discussed ServiceNow, Inc. (NYSE:NOW) in another article and shared the best growth stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.