Software company ServiceNow (NYSE:NOW) likely had a “strong” finish to the end of its second-quarter, investment firm Stifel said on Monday, citing channel checks.
Brad Reback, who has a buy rating on ServiceNow (NOW), noted that checks showed enterprise activity across all geographies were “robust,” especially in Europe, as previously stalled projects resumed. Reback also said that U.S. public sector demand was “very healthy” and federal activity is still “solid.”
“Looking forward, customer engagement remains high post a successful Knowledge 2023 event, and pipelines appear solid heading into [the second half of 2023],” Reback wrote in an investor note.
Reback also noted that ServiceNow (NOW) is expanding its platform and growing its pipeline, while continuing to maintain its 20% or more revenue growth, along with continued margin expansion.
ServiceNow (NOW) shares fell fractionally in pre-market trading on Monday.
ServiceNow (NOW) is slated to report second-quarter results on July 26. A consensus of analysts estimate that the company will earn $2.04 per share on $2.31B in revenue.