NEW YORK (TheStreet) -- Shares of ServiceNow (NOW) - Get Report are rising 3.54% to $75.56 on heavy trading volume early Thursday afternoon after the company reported better-than-anticipated results for the 2016 second quarter.
After yesterday's closing bell, the Santa Clara, CA-based provider of cloud-based solutions posted adjusted earnings of 15 cents per diluted share, above analysts' estimates of 10 cents per share.
Revenue jumped 38% to $341.31 million from last year, exceeding analysts' projections of $333.96 million.
During the period, billings rose 33% to $374.9 million year-over-year.
"Our business mix continues to diversify with emerging products representing 40% of our new business, up from 24% during the same period last year," CEO Frank Slootman said in a statement.
"Two-thirds of our customers now license more than one product, and 15 of our top 20 new deals included three or more products," he added.
For the third quarter, ServiceNow sees revenue between $350 million and $354 million. Analysts are looking for revenue of $349.3 million for the current quarter.
In 2016, the company forecasts revenue between $1.37 billion and $1.38 billion, in line with analysts' expectations of $1.37 billion.
About 2.19 million of the company's shares have been traded so far today, above its average 30-day volume of 1.47 million shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: NOW