- ServiceNow exceeds guidance across all Q1 2024 topline growth
and profitability metrics; raises midpoint of 2024 subscription
revenues guidance range
- Subscription revenues of $2,523 million in Q1 2024,
representing 25% year-over-year growth, 24.5% in constant
currency
- Total revenues of $2,603 million in Q1 2024, representing 24%
year-over-year growth, 24% in constant currency
- Current remaining performance obligations of $8.45 billion as
of Q1 2024, representing 21% year-over-year growth, 21% in constant
currency
- 8 transactions over $5 million in net new ACV in Q1 2024, up
100% year-over-year
ServiceNow (NYSE: NOW), the leading digital workflow company
making the world work better for everyone, today announced
financial results for its first quarter ended March 31, 2024, with
subscription revenues of $2,523 million in Q1 2024, representing
25% year-over-year growth and 24.5% in constant currency.
“ServiceNow is off to a fast start with an outstanding first
quarter,” said ServiceNow Chairman and CEO Bill McDermott. “As
leaders seek significant productivity improvements, ServiceNow has
first mover advantage with years of investment in AI technology and
talent. Our GenAI offerings are the fastest selling in the
company’s history. We are humbled by the trust our customers are
investing in our platform. As we engineer Now Assist AI into every
business workflow across every enterprise, we are giving people the
power to know more, care more, and do more.”
As of March 31, 2024, current remaining performance obligations
(“cRPO”), contract revenue that will be recognized as revenue in
the next 12 months, was $8.45 billion, representing 21%
year-over-year growth and 21% in constant currency. The company now
has 1,933 total customers with more than $1 million in annual
contract value (“ACV”), representing 15% year-over-year growth in
customers.
“Building on the momentum from Q4, our team delivered another
exceptional quarter of outperformance across all of our topline and
profitability guidance metrics,” said ServiceNow CFO Gina
Mastantuono. “We have the platform enterprises need to reinvent
their business models, and it's showing in our results. Our teams
are consistently executing against the massive opportunity in front
of us. With GenAI conversations serving as a digital transformation
catalyst, we are as confident as ever about becoming the defining
enterprise software company of the 21st century.”
Recent Business Highlights
- Now Assist, ServiceNow’s GenAI powered experience, continues to
see the largest net new ACV contribution to date of any new product
family launch for the comparable period.
- During the quarter, ServiceNow launched its Washington, D.C.
Platform release, delivering new innovations such as Now Assist for
ITOM AIOps and Impact AI Accelerators.
- ServiceNow, NVIDIA, and Hugging Face released StarCoder2, a
family of open‑access LLMs for code generation. In an expanded
partnership with NVIDIA, ServiceNow also became one of the first
platform providers to access NVIDIA NIM inference microservices for
LLM development, and together the companies introduced new
telco-specific GenAI solutions.
- Acquisitions announced during the quarter included 4Industry
and EY Smart Daily Management Application to drive innovation for
smart industrial environments and connected workers, as well as
Atrinet NetACE to further accelerate telco business
transformation.
- ServiceNow also announced a strategic investment in AoraNow to
develop job‑ready technology talent and expand its partnership
footprint in Japan.
- To meet customer demand, ServiceNow committed to direct
investment of $500 million in the Kingdom of Saudi Arabia to
support business transformation, job creation, and digital skills
development, including two dedicated in-country data centers.
- The company was named a leader in the Forrester Wave™: Customer
Service Solutions and Forrester Wave™: Third‑Party Risk Management
Platforms, and a leader in two IDC MarketScape vendor assessments
for Value Stream Management and Strategic Portfolio
Management.
- ServiceNow ranked #3 on Glassdoor’s Best Places to Work 2024,
and was named to the Ethisphere 2024 World’s Most Ethical Companies
list, Fortune World’s Most Admired Companies™ list, and Fortune 100
Best Companies to Work For® list1.
- During the quarter, the company repurchased 225,000 shares of
its common stock for $175 million as part of its share repurchase
program, with the primary objective of managing the impact of
dilution. Of the original authorized amount, approximately $787
million remains available for future share repurchases under the
existing program.
(1)
©2024 Fortune Media IP Limited All rights
reserved. Used under license. Fortune and Fortune Media IP Limited
are not affiliated with, and do not endorse products or services
of, ServiceNow.
First Quarter 2024 GAAP and Non-GAAP Results:
The following table summarizes our financial results for the
first quarter 2024:
First Quarter 2024 GAAP
Results
First Quarter 2024 Non-GAAP
Results(1)
Amount
($ millions)
Year/Year
Growth (%)
Amount
($ millions)(3)
Year/Year
Growth (%)
Subscription revenues
$2,523
25%
$2,517
24.5%
Professional services and other
revenues
$80
11%
$80
11%
Total revenues
$2,603
24%
$2,597
24%
Amount
($ billions)
Year/Year
Growth (%)
Amount ($ billions)(3)
Year/Year
Growth (%)
cRPO
$8.45
21%
$8.49
21%
RPO
$17.7
26%
$17.8
27%
Amount
($ millions)
Margin (%)
Amount
($ millions)(2)
Margin (%)(2)
Subscription gross profit
$2,082
83%
$2,161
86%
Professional services and other
gross profit
$1
1%
$13
16%
Total gross profit
$2,083
80%
$2,174
83%
Income from operations
$332
13%
$791
30%
Net cash provided by operating
activities
$1,341
52%
Free cash flow
$1,225
47%
Amount
($ millions)
Earnings per
Basic/Diluted
Share ($)
Amount
($ millions)(2)
Earnings per
Basic/Diluted
Share ($)(2)
Net income
$347
$1.69 / $1.67
$707
$3.45 / $3.41
(1)
We report non-GAAP financial measures in
addition to, and not as a substitute for, or superior to, financial
measures calculated in accordance with GAAP. See the section
entitled “Statement Regarding Use of Non-GAAP Financial Measures”
for an explanation of non-GAAP measures.
(2)
Refer to the table entitled “GAAP to
Non-GAAP Reconciliation” for a reconciliation of GAAP to non-GAAP
measures.
(3)
Non-GAAP subscription revenues and total
revenues are adjusted for constant currency by excluding effects of
foreign currency rate fluctuations and any gains or losses from
foreign currency hedge contracts. Professional services and other
revenues, cRPO, and RPO are adjusted only for constant currency.
See the section entitled “Statement Regarding Use of Non-GAAP
Financial Measures” for an explanation of non-GAAP measures.
Note: Numbers rounded for presentation
purposes and may not foot.
Financial Outlook
Our guidance includes GAAP and non-GAAP financial measures. The
non-GAAP growth rates for subscription revenues are adjusted for
constant currency by excluding effects of foreign currency rate
fluctuations and any gains or losses from foreign currency hedge
contracts, and cRPO are adjusted only for constant currency to
provide better visibility into the underlying business trends. In
Q1 2024, we initiated a program to hedge a portion of our
forecasted foreign currency denominated revenues. While the cash
flow hedging program is designed to reduce the impact of foreign
currency exchange rate fluctuations on our subscription revenues,
the strengthening of the U.S. Dollar since December 31, 2023 has
still resulted in an adverse impact to our 2024 guidance. As we
have previously mentioned, the Q3 2023 strength of our U.S. Federal
business has resulted in a higher mix of contracts containing
12-month renewal terms. This will create a negative 2-point impact
to Q2 2024 cRPO growth, as that balance is amortized into revenue.
We expect that these contracts will renew in Q3 2024 as
ServiceNow’s U.S. Federal renewal rates have been 99%.
The following table summarizes our guidance for the second
quarter 2024:
Second Quarter 2024
GAAP Guidance
Second Quarter 2024
Non-GAAP Guidance(1)
Amount ($ millions)(3)
Year/Year
Growth (%)(3)
Constant Currency
Year/Year Growth (%)
Subscription revenues
$2,525 - $2,530
21.5% - 22%
22%
cRPO
20.5%
20.5%
Note: Includes impact from strength of
public sector business noted above
Margin (%)(2)
Income from operations
25%
Amount
(millions)
Weighted-average shares used to compute
diluted net income per share
208
(1)
We report non-GAAP financial measures in
addition to, and not as a substitute for, or superior to, financial
measures calculated in accordance with GAAP. See the section
entitled “Statement Regarding Use of Non-GAAP Financial Measures”
for an explanation of non-GAAP measures.
(2)
Refer to the table entitled
“Reconciliation of Non-GAAP Financial Guidance” for a
reconciliation of GAAP to non-GAAP measures.
(3)
Guidance for GAAP subscription revenues
and GAAP subscription revenues and cRPO growth rates are based on
the 31-day average of foreign exchange rates for March 2024 for
entities reporting in currencies other than U.S. Dollars.
The following table summarizes our guidance for the full-year
2024:
Full-Year 2024
GAAP Guidance
Full-Year 2024
Non-GAAP Guidance(1)
Amount ($ millions)(3)
Year/Year
Growth (%)(3)
Constant Currency
Year/Year Growth (%)
Subscription revenues
$10,560 - $10,575
21.5% - 22%
21.5%
Margin (%)(2)
Subscription gross profit
84.5%
Income from operations
29%
Free cash flow
31%
Amount
(millions)
Weighted-average shares used to compute
diluted net income per share
208
(1)
We report non-GAAP financial measures in
addition to, and not as a substitute for, or superior to, financial
measures calculated in accordance with GAAP. See the section
entitled “Statement Regarding Use of Non-GAAP Financial Measures”
for an explanation of non-GAAP measures.
(2)
Refer to the table entitled
“Reconciliation of Non-GAAP Financial Guidance” for a
reconciliation of GAAP to non-GAAP measures.
(3)
GAAP subscription revenues and related
growth rate for the future quarter included in our full-year 2024
guidance are based on the 31-day average of foreign exchange rates
for March 2024 for entities reporting in currencies other than U.S.
Dollars.
Note: Numbers are rounded for presentation
purposes and may not foot.
Conference Call Details
The conference call will begin at 2 p.m. Pacific Time (“PT”)
(21:00 GMT) on April 24, 2024. Interested parties may listen to the
call by dialing (888) 330‑2455 (Passcode: 8135305), or if outside
North America, by dialing (240) 789‑2717 (Passcode: 8135305).
Individuals may access the live teleconference from this
webcast.
https://events.q4inc.com/attendee/528191825
An audio replay of the conference call and webcast will be
available two hours after its completion and will be accessible for
30 days. To hear the replay, interested parties may go to the
investor relations section of the ServiceNow website or dial (800)
770‑2030 (Passcode: 8135305), or if outside North America, by
dialing (609) 800‑9909 (Passcode: 8135305).
Investor Presentation Details
An investor presentation providing additional information,
including forward-looking guidance, and analysis can be found at
https://investors.servicenow.com.
Financial Analyst Day
ServiceNow will host its Financial Analyst Day 2024 on Monday,
May 6, 2024 at 1:30 p.m. PT in Las Vegas. This half‑day program
will feature presentations by ServiceNow executives providing
updates on the company’s strategy, product and GenAI roadmap,
financials, and customer momentum. A webcast will also be available
the day of the event at https://investors.servicenow.com
Event Details: May 6, 2024, from 1:30‑4:30 p.m. PT
Upcoming Investor Conferences
ServiceNow today announced that it will attend and have
executives present at four upcoming investor conferences.
These include:
- ServiceNow President and Chief Operating Officer CJ Desai will
participate in a fireside chat at the JP Morgan 52nd Annual Global
Technology, Media & Communications Conference on Tuesday, May
21, 2024, at 11:25 a.m. PT.
- ServiceNow President and Chief Operating Officer CJ Desai will
participate in a fireside chat at the TD Cowen 52nd Annual
Technology, Media and Telecom Conference on Wednesday, May 29,
2024, at 10:15 a.m. PT.
- ServiceNow Chief Financial Officer Gina Mastantuono will
participate in a fireside chat at the Jefferies Software Conference
on Wednesday, May 29, 2024, at 11:00 a.m. PT.
- ServiceNow President and Chief Operating Officer CJ Desai will
participate in a fireside chat at the Bernstein 40th Annual
Strategic Decisions Conference on Wednesday, May 29, 2024, at 11:30
a.m. PT.
The live webcast will be accessible on the investor relations
section of the ServiceNow website at
https://investors.servicenow.com and archived on the ServiceNow
site for a period of 30 days.
Statement Regarding Use of Non-GAAP Financial
Measures
We use the following non-GAAP financial measures in addition to,
and not as a substitute for, or superior to, financial measures
calculated in accordance with GAAP.
- Revenues. We adjust revenues and related growth rates for
constant currency to provide a framework for assessing how our
business performed excluding the effect of foreign currency rate
fluctuations and any gains or losses from foreign currency hedge
contracts that are reported in the current and comparative period.
To exclude the effect of foreign currency rate fluctuations,
current period results for entities reporting in currencies other
than U.S. Dollars (“USD”) are converted into USD at the average
exchange rates in effect during the comparison period (for Q1 2023,
the average exchange rates in effect for our major currencies were
1 USD to 0.93 Euros and 1 USD to 0.82 British Pound Sterling
(“GBP”)), rather than the actual average exchange rates in effect
during the current period (for Q1 2024, the average exchange rates
in effect for our major currencies were 1 USD to 0.92 Euros and 1
USD to 0.79 GBP). Guidance for related growth rates is derived by
applying the average exchange rates in effect during the comparison
period, rather than the exchange rates for the guidance period,
adjusted for any foreign currency hedging effects. We believe the
presentation of revenues and related growth rates adjusted for
constant currency facilitates the comparison of revenues
year-over-year.
- Remaining performance obligations and current remaining
performance obligations. We adjust cRPO and remaining performance
obligations (“RPO”) and related growth rates for constant currency
to provide a framework for assessing how our business performed. To
present this information, current period results for entities
reporting in currencies other than USD are converted into USD at
the exchange rates in effect at the end of the comparison period
(for Q1 2023, the end of the period exchange rates in effect for
our major currencies were 1 USD to 0.92 Euros and 1 USD to 0.81
GBP), rather than the actual end of the period exchange rates in
effect during the current period (for Q1 2024, the end of the
period exchange rates in effect for our major currencies were 1 USD
to 0.93 Euros and 1 USD to 0.79 GBP). Guidance for the related
growth rate is derived by applying the end of period exchange rates
in effect during the comparison period rather than the exchange
rates in effect during the guidance period. We believe the
presentation of cRPO and RPO and related growth rates adjusted for
constant currency facilitates the comparison of cRPO and RPO
year-over-year, respectively.
- Gross profit, Income from operations, Net income and Net income
per share - diluted. Our non-GAAP presentation of gross profit,
income from operations, and net income measures exclude certain
non-cash or non-recurring items, including stock-based compensation
expense, amortization of debt discount and issuance costs related
to our convertible senior notes, loss on early note conversions,
amortization of purchased intangibles, legal settlements, business
combination and other related costs, income tax effects and
adjustments, and the income tax benefit from the release of a
valuation allowance on deferred tax assets. The non-GAAP
weighted-average shares used to compute our non-GAAP net income per
share - diluted excludes the dilutive effect of the in-the-money
portion of convertible senior notes as they are covered by our note
hedges, and includes the dilutive effect of time-based stock
awards, the dilutive effect of warrants and the potentially
dilutive effect of our stock awards with performance conditions not
yet satisfied at forecasted attainment levels to the extent we
believe it is probable that the performance condition will be met.
We believe these adjustments provide useful supplemental
information to investors and facilitates the analysis of our
operating results and comparison of operating results across
reporting periods.
- Free cash flow. Free cash flow is defined as net cash provided
by operating activities plus cash outflows for legal settlements,
repayments of convertible senior notes attributable to debt
discount and business combination and other related costs including
compensation expense, reduced by purchases of property and
equipment. Free cash flow margin is calculated as free cash flow as
a percentage of total revenues. We believe information regarding
free cash flow and free cash flow margin provides useful
information to investors because it is an indicator of the strength
and performance of our business operations.
Our presentation of non-GAAP financial measures may not be
comparable to similar measures used by other companies. We
encourage investors to carefully consider our results under GAAP,
as well as our supplemental non-GAAP information and the
reconciliation between these presentations, to more fully
understand our business. Please see the tables included at the end
of this release for the reconciliation of GAAP and non-GAAP results
for gross profit, income from operations, net income, net income
per share, and free cash flow.
Use of Forward-Looking Statements
This release contains “forward-looking statements” regarding our
performance, including but not limited to statements in the section
entitled “Financial Outlook.” Forward-looking statements are
subject to known and unknown risks and uncertainties and are based
on potentially inaccurate assumptions that could cause actual
results to differ materially from those expected or implied by the
forward-looking statements. If any such risks or uncertainties
materialize or if any of the assumptions prove incorrect, our
results could differ materially from the results expressed or
implied by the forward-looking statements we make.
Factors that may cause actual results to differ materially from
those in any forward-looking statements include, among others,
experiencing an actual or perceived cyber-security event or
weakness; our ability to comply with evolving privacy laws, data
transfer restrictions, and other foreign and domestic standards
related to data and the Internet; errors, interruptions, delays or
security breaches in or of our service or data centers; our ability
to maintain and attract key employees and manage workplace culture;
alleged violations of laws and regulations, including those
relating to anti-bribery and anti-corruption and those relating to
public sector contracting requirements; our ability to compete
successfully against existing and new competitors; our ability to
predict, prepare for and respond promptly to rapidly evolving
technological, market and customer developments; our ability to
grow our business, including converting remaining performance
obligations into revenue, adding and retaining customers, selling
additional subscriptions to existing customers, selling to larger
enterprises, government and regulated organizations with complex
sales cycles and certification processes, and entering new
geographies and markets; our ability to develop and gain customer
demand for and acceptance of existing, new and improved products
and services; our ability to expand and maintain our partnerships
and partner programs, including expected market opportunity from
such relationships; global economic conditions; fluctuations in the
value of foreign currencies relative to the U.S. Dollar;
fluctuations in interest rates; our ability to consummate and
realize the benefits of any strategic transactions or acquisitions;
the impact of armed conflicts and bank failures on macroeconomic
conditions; inflation; and fluctuations and volatility in our stock
price.
Further information on these and other factors that could affect
our financial results are included in our Form 10-K for the year
ended December 31, 2023, and in other filings we make with the
Securities and Exchange Commission from time to time.
We undertake no obligation, and do not intend, to update these
forward-looking statements, to review or confirm analysts’
expectations, or to provide interim reports or updates on the
progress of the current financial quarter.
About ServiceNow
ServiceNow (NYSE: NOW) makes the world work better for everyone.
Our cloud-based platform and solutions help digitize and unify
organizations so that they can find smarter, faster, better ways to
make work flow. So employees and customers can be more connected,
more innovative, and more agile. And we can all create the future
we imagine. The world works with ServiceNowTM. For more
information, visit: www.servicenow.com.
© 2024 ServiceNow, Inc. All rights reserved. ServiceNow, the
ServiceNow logo, Now, and other ServiceNow marks are trademarks
and/or registered trademarks of ServiceNow, Inc. in the United
States and/or other countries. Other company names, product names,
and logos may be trademarks of the respective companies with which
they are associated.
ServiceNow, Inc.
Condensed Consolidated
Statements of Operations
(in millions, except per share
data)
(unaudited)
Three Months Ended
March 31, 2024
March 31, 2023
Revenues:
Subscription
$
2,523
$
2,024
Professional services and other
80
72
Total revenues
2,603
2,096
Cost of revenues (1):
Subscription
441
354
Professional services and other
79
84
Total cost of revenues
520
438
Gross profit
2,083
1,658
Operating expenses (1):
Sales and marketing
923
823
Research and development
606
492
General and administrative
222
199
Total operating expenses
1,751
1,514
Income from operations
332
144
Interest income
101
60
Other expense, net
(8
)
(16
)
Income before income taxes
425
188
Provision for income taxes
78
38
Net income
$
347
$
150
Net income per share - basic
$
1.69
$
0.74
Net income per share - diluted
$
1.67
$
0.73
Weighted-average shares used to compute
net income per share - basic
205
203
Weighted-average shares used to compute
net income per share - diluted
208
204
(1) Includes stock-based compensation as
follows:
Three Months Ended
March 31, 2024
March 31, 2023
Cost of revenues:
Subscription
$
58
$
46
Professional services and other
12
14
Operating expenses:
Sales and marketing
134
126
Research and development
159
135
General and administrative
59
60
ServiceNow, Inc.
Condensed Consolidated Balance
Sheets
(in millions)
March 31, 2024
December 31, 2023
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
2,056
$
1,897
Short-term investments
3,054
2,980
Accounts receivable, net
1,306
2,036
Current portion of deferred
commissions
474
461
Prepaid expenses and other current
assets
482
403
Total current assets
7,372
7,777
Deferred commissions, less current
portion
930
919
Long-term investments
3,666
3,203
Property and equipment, net
1,450
1,358
Operating lease right-of-use assets
698
715
Intangible assets, net
224
224
Goodwill
1,224
1,231
Deferred tax assets
1,478
1,508
Other assets
502
452
Total assets
$
17,544
$
17,387
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
223
$
126
Accrued expenses and other current
liabilities
1,018
1,365
Current portion of deferred revenue
5,700
5,785
Current portion of operating lease
liabilities
92
89
Total current liabilities
7,033
7,365
Deferred revenue, less current portion
100
81
Operating lease liabilities, less current
portion
693
707
Long-term debt, net
1,488
1,488
Other long-term liabilities
123
118
Stockholders’ equity
8,107
7,628
Total liabilities and stockholders’
equity
$
17,544
$
17,387
ServiceNow, Inc.
Condensed Consolidated
Statements of Cash Flows
(in millions)
(unaudited)
Three Months Ended
March 31, 2024
March 31, 2023
Cash flows from operating
activities:
Net income
$
347
$
150
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
130
126
Amortization of deferred commissions
131
106
Stock-based compensation
422
381
Deferred income taxes
28
7
Other
(18
)
1
Changes in operating assets and
liabilities, net of effect of business combinations:
Accounts receivable
715
619
Deferred commissions
(165
)
(159
)
Prepaid expenses and other assets
(106
)
(64
)
Accounts payable
107
(46
)
Deferred revenue
(10
)
40
Accrued expenses and other liabilities
(240
)
(259
)
Net cash provided by operating
activities
$
1,341
$
902
Cash flows from investing
activities:
Purchases of property and equipment
(135
)
(165
)
Business combinations, net of cash
acquired
(194
)
—
Purchases of other intangibles
(21
)
—
Purchases of investments
(1,605
)
(1,222
)
Purchases of non-marketable
investments
(42
)
(30
)
Sales and maturities of investments
1,073
880
Other
6
13
Net cash used in investing activities
(918
)
(524
)
Cash flows from financing
activities:
Proceeds from employee stock plans
131
117
Repurchases of common stock
(175
)
—
Taxes paid related to net share settlement
of equity awards
(215
)
(112
)
Net cash (used in) provided by financing
activities
(259
)
5
Foreign currency effect on cash, cash
equivalents and restricted cash
(4
)
1
Net change in cash, cash equivalents and
restricted cash
160
384
Cash, cash equivalents and restricted cash
at beginning of period
1,904
1,475
Cash, cash equivalents and restricted cash
at end of period
$
2,064
$
1,859
ServiceNow, Inc.
GAAP to Non-GAAP
Reconciliation
(in millions, except per share
data)
(unaudited)
Three Months Ended
March 31, 2024
March 31, 2023
Gross profit:
GAAP subscription gross profit
$
2,082
$
1,670
Stock-based compensation
58
46
Amortization of purchased intangibles
21
18
Non-GAAP subscription gross profit
$
2,161
$
1,734
GAAP professional services and other gross
profit (loss)
$
1
$
(12
)
Stock-based compensation
12
14
Non-GAAP professional services and other
gross profit
$
13
$
2
GAAP gross profit
$
2,083
$
1,658
Stock-based compensation
70
60
Amortization of purchased intangibles
21
18
Non-GAAP gross profit
$
2,174
$
1,736
Gross margin:
GAAP subscription gross margin
83
%
83
%
Stock-based compensation as % of
subscription revenues
2
%
2
%
Amortization of purchased intangibles as %
of subscription revenues
1
%
1
%
Non-GAAP subscription gross margin
86
%
86
%
GAAP professional services and other gross
margin
1
%
(17
%)
Stock-based compensation as % of
professional services and other revenues
15
%
20
%
Non-GAAP professional services and other
gross margin
16
%
4
%
GAAP gross margin
80
%
79
%
Stock-based compensation as % of total
revenues
3
%
3
%
Amortization of purchased intangibles as %
of total revenues
1
%
1
%
Non-GAAP gross margin
83
%
83
%
Income from operations:
GAAP income from operations
$
332
$
144
Stock-based compensation
422
381
Amortization of purchased intangibles
24
20
Business combination and other related
costs
13
7
Non-GAAP income from operations
$
791
$
552
Operating margin:
GAAP operating margin
13
%
7
%
Stock-based compensation as % of total
revenues
16
%
18
%
Amortization of purchased intangibles as %
of total revenues
1
%
1
%
Business combination and other related
costs as % of total revenues
—
%
—
%
Non-GAAP operating margin
30
%
26
%
Net income:
GAAP net income
$
347
$
150
Stock-based compensation
422
381
Amortization of purchased intangibles
24
20
Business combination and other related
costs
13
7
Income tax effects and adjustments(1)
(99
)
(75
)
Non-GAAP net income
$
707
$
483
Net income per share - basic and
diluted:
GAAP net income per share - basic
$
1.69
$
0.74
GAAP net income per share - diluted
$
1.67
$
0.73
Non-GAAP net income per share - basic
$
3.45
$
2.38
Non-GAAP net income per share -
diluted
$
3.41
$
2.37
Weighted-average shares used to compute
net income per share - basic
205
203
Weighted-average shares used to compute
net income per share - diluted
208
204
Free cash flow:
GAAP net cash provided by operating
activities
$
1,341
$
902
Purchases of property and equipment
(135
)
(165
)
Business combination and other related
costs
19
—
Non-GAAP free cash flow
$
1,225
$
737
Free cash flow margin:
GAAP net cash provided by operating
activities as % of total revenues
52
%
43
%
Purchases of property and equipment as %
of total revenues
(5
%)
(8
%)
Business combination and other related
costs as % of total revenues
1
%
—
%
Non-GAAP free cash flow margin
47
%
35
%
(1)
We use a non-GAAP effective tax rate for
evaluating our operating results to provide consistency across
reporting periods. Based on our long-term projections, we are using
a non-GAAP tax rate of 20% and 19% for the three months ended March
31, 2024 and 2023, respectively. This non-GAAP tax rate could
change for various reasons including significant changes in our
geographic earnings mix or fundamental tax law changes in major
jurisdictions in which we operate.
Note: Numbers are rounded for presentation
purposes and may not foot.
ServiceNow, Inc.
Reconciliation of Non-GAAP
Financial Guidance
Three Months Ending
June 30, 2024
GAAP operating margin
7
%
Stock-based compensation expense as % of
total revenues
17
%
Amortization of purchased intangibles as %
of total revenues
1
%
Business combination and other related
costs as % of total revenues
—
%
Non-GAAP operating margin
25
%
Twelve Months Ending
December 31, 2024
GAAP subscription gross margin
81.5
%
Stock-based compensation expense as % of
subscription revenues
2
%
Amortization of purchased intangibles as %
of subscription revenues
1
%
Non-GAAP subscription margin
84.5
%
GAAP operating margin
12
%
Stock-based compensation expense as % of
total revenues
16
%
Amortization of purchased intangibles as %
of total revenues
1
%
Business combination and other related
costs as % of total revenues
—
%
Non-GAAP operating margin
29
%
GAAP net cash provided by operating
activities as % of total revenues
39
%
Purchases of property and equipment as %
of total revenues
(8
%)
Business combination and other related
costs as % of total revenues
—
%
Non-GAAP free cash flow margin
31
%
Note: Numbers are rounded for presentation
purposes and may not foot.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240424112167/en/
Media Contact: Johnna Hoff (408) 250-8644
press@servicenow.com
Investor Contact: Darren Yip (925) 388-7205
ir@servicenow.com
ServiceNow (NYSE:NOW)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
ServiceNow (NYSE:NOW)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024