On Thursday, shares of ServiceNow Inc (NYSE:NOW) are up almost 13 per cent in pre-open trading after the software developer delivered a solid beat for Q3.

ServiceNow delivered an adjusted EPS (Earnings per Share) of USD 1.96 on revenue of USD 1.93 billion, better than analyst expectations of EPS of USD 1.85 on revenue of USD 1.85 billion. Subscription revenue surged 22 per cent year-over-year to USD 1.74 billion. The adjusted gross margin was reported at 82 per cent, lower than the 82.2 per cent consensus.

For the quarter, ServiceNow expects subscription revenue to come in between USD 1.83 billion and USD 1.84 billion, worse than the USD 1.93 billion expected. On a full-year basis, ServiceNow sees subscription revenue between USD 6.865 billion and USD 6.870 billion, again below the Bloomberg-compiled consensus of USD 6.97 billion.

MoffettNathanson analysts upgraded NOW stock to Outperform after the results proved to be a ‘welcome change after the disappointing results from Microsoft (NASDAQ:MSFT).’