NEW YORK (TheStreet) -- Shares of ServiceNow (NOW) - Get Report were climbing 8.85% to $85.88 on heavy trading volume late Thursday afternoon after the company reported better-than-anticipated results for the 2016 third quarter.

After yesterday's closing bell, the Santa Clara, CA-based cloud software solutions company posted adjusted earnings of 23 cents per diluted share, topping analysts' estimates of 21 cents per share.

Revenue jumped 37% to $357.7 million year-over-year and was above analysts' forecasts of $353.0 million.

Billings soared 41% to $404.3 million compared to a year ago, while Wall Street had expected billings of $383.2 million, according to StreetAccount.

Subscription billings increased 47% to $363 million from last year.

For the fourth quarter, the company sees revenue in the range of $376 million to $381 million. Analysts surveyed by FactSet are projective revenue of $377 million.

TST Recommends

DA Davidson maintained a "buy" rating and $102 price target on the shares after the quarterly report. The firm said its "blowout billings are likely to reinvigorate" sentiment for the stock.

More than 8.83 million of the company's shares changed hands so far today, well above its average 30-day volume of 1.60 million shares.

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 disappointing return on equity, weak operating cash flow and generally high debt management risk.

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

Image placeholder title