Close

ServiceNow Reports Financial Results for Third Quarter 2016

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 4/16/2024

1. SPY
2. TSLA
3. RDDT
4. TCS:IN
5. ALAB
6. JPM
7. C
8. AAPL
9. GS
10. DJT


October 26, 2016 4:01 PM EDT

SANTA CLARA, Calif.--(BUSINESS WIRE)-- ServiceNow (NYSE: NOW), the enterprise cloud company, today announced the financial results for its third quarter 2016.

Third Quarter 2016 Results:

  • Total revenues of $357.7 million, an increase of 37% year-over-year.
  • Billings of $404.3 million, an increase of 41% year-over-year (see the table entitled “Results of Operations GAAP to Non-GAAP Reconciliation” for a reconciliation).
  • GAAP net loss of $36.3 million, or loss of $0.22 per basic and diluted share.
  • Non-GAAP net income of $39.5 million, or income of $0.24 per basic and $0.23 per diluted share (see the table entitled “Results of Operations GAAP to Non-GAAP Reconciliation” for a reconciliation).
  • Net cash provided by operating activities of $96.7 million.
  • Free cash flow of $65.5 million, or 18% of total revenues (see the table entitled “Condensed Consolidated Statements of Cash Flows” for a reconciliation).

“We are very pleased with the third quarter results,” said Frank Slootman, chairman and chief executive officer, ServiceNow. “The company saw broad based contribution and large deal activity across all major sales regions and product segments.”

“Subscription billings were $363 million and grew 47% year-over-year, re-accelerating from 38% last quarter and 39% last year,” said Michael Scarpelli, chief financial officer, ServiceNow. “We now have 705 Global 2000 customers, an increase of 23 in the quarter, that pay us an average of $1 million per year.”

Financial Outlook

The financial guidance discussed below is on a non-GAAP basis, except for revenues, and excludes stock-based compensation expense, amortization of purchased intangibles, legal settlements and business combination and other related costs (see the table entitled “Reconciliation of Non-GAAP Financial Guidance” for a reconciliation).

For the fourth quarter of 2016, we expect:

  • Subscription revenues between $335 and $340 million, representing year-over-year growth between 37% and 39%.
  • Professional services and other revenues of $41 million, representing year-over-year growth of 0%.
  • Total revenues between $376 and $381 million, representing year-over-year growth between 32% and 33%.
  • Subscription billings between $427 and $431 million, representing year-over-year growth between 34% and 36%.
  • Professional services and other billings between $47 and $48 million, representing year-over-year growth between -2% and 0%.
  • Total billings between $474 and $479 million, representing year-over-year growth between 30% and 31%.
  • Subscription gross margin of approximately 84%, professional services and other gross margin of approximately 16%, and overall gross margin of approximately 77%.
  • Operating margin of approximately 16%.
  • Free cash flow margin of approximately 30%.
  • Weighted average shares used to compute diluted net income per share of approximately 176 million shares.
  • Net employee additions of approximately 275.

For full-year 2016, we expect:

  • Subscription revenues between $1,212 and $1,217 million, representing year-over-year growth of 43%.
  • Professional services and other revenues of $169 million, representing year-over-year growth of 7%.
  • Total revenues between $1,381 and $1,386 million, representing year-over-year growth between 37% and 38%.
  • Subscription billings between $1,454 and $1,458 million, representing year-over-year growth of 40%.
  • Professional services and other billings between $176 and $177 million, representing year-over-year growth between 8% and 9%.
  • Total billings between $1,630 and $1,635 million, representing year-over-year growth of 36%.
  • Operating margin of approximately 13%.
  • Free cash flow margin of approximately 24%.
  • Weighted average shares used to compute diluted net income per share of approximately 173 million shares.

Conference Call Details

The conference call will begin at 2 p.m. Pacific Time (21:00 GMT) on Wednesday, October 26, 2016. Interested parties may listen to the call by dialing 844.464.3153 (passcode: 91366810), or if outside North America, by dialing +1.508.637.5575 (passcode: 91366810). Individuals may access the live teleconference from the investor relations section of the ServiceNow website at http://investors.servicenow.com/.

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 855.859.2056 (passcode: 91366810), or if outside North America, by dialing +1.404.537.3406 (passcode: 91366810).

Statement regarding use of non-GAAP financial measures

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.

Our financial measures under GAAP include stock-based compensation expense, the amortization of debt discount and issuance costs related to the convertible senior notes, amortization of purchased intangibles, legal settlements, business combination and other related costs, and the related income tax effects of these adjustments. We believe the presentation of operating results that exclude these items provides useful supplemental information to investors and facilitates the analysis of our core operating results and comparison of operating results across reporting periods.

Free cash flow, which is a non-GAAP financial measure, is calculated as net cash provided by operating activities plus cash paid for legal settlements, reduced by purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of 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 ongoing business operations. However, our calculation of free cash flow and free cash flow margin may not be comparable to similar measures used by other companies.

Total billings is calculated as revenue plus the change in total deferred revenue as presented on the statement of cash flows. We also provide the breakdown of billings information by subscription billings and professional services and other billings. These are calculated based on the respective revenue in each category plus the respective change in deferred revenues for each category. We believe billings offers investors useful supplemental information regarding the performance of our business, and will help investors better understand the sales volumes and performance of our business.

Emerging products include ServiceWatch, Discovery, Cloud Management, Orchestration, Event Management, HR, Security Operations, Customer Service Management, Performance Analytics, IT Business Management, Platform, and Governance, Risk and Compliance.

The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Please see the tables included at the end of this release for the reconciliation of GAAP and non-GAAP results.

Use of forward-looking statements

This release contains “forward-looking statements” regarding our performance, including but not limited to 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.

Among the important factors that could cause actual results to differ materially from those in any forward-looking statements include: (i) errors, interruptions, delays, or security breaches in or of our service or web hosting, (ii) our ability to grow at our expected rate of growth, including our ability to convert deferred revenue and backlog into revenue, add and retain customers, sell additional subscriptions to existing customers and enter new geographies and markets, (iii) our ability to continue to release, and gain customer acceptance of, improved versions of our services, (iv) our ability to develop and gain customer acceptance of new products and services, including our platform, and (v) our ability to compete successfully against existing and new competitors.

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, 2015 and in other filings we make with the Securities and Exchange Commission from time to time, including our Form 10-Q that will be filed for the quarter ended September 30, 2016.

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 is changing the way people work. With a service-orientation toward the activities, tasks and processes that make up day-to-day work life, we help the modern enterprise operate faster and be more scalable than ever before. Customers use our service model to define, structure and automate the flow of work, removing dependencies on email and spreadsheets to transform the delivery and management of services for the enterprise. ServiceNow enables service management for every department in the enterprise including IT, human resources, facilities, field service and more. We deliver a ‘lights-out, light-speed’ experience through our enterprise cloud – built to manage everything as a service. To find out how, visit www.servicenow.com.

ServiceNow and the ServiceNow logo are registered trademarks of ServiceNow. All other brand and product names are trademarks or registered trademarks of their respective holders.

ServiceNow, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
(Unaudited)
       
Three Months Ended Nine Months Ended
September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015
 
Revenues:
Subscription $ 318,934 $ 223,208 $ 877,035 $ 603,576

Professional services and other

  38,722     37,942     127,812     116,254  
Total revenues   357,656     261,150     1,004,847     719,830  
Cost of revenues (1):
Subscription 61,566 46,053 170,707 133,889
Professional services and other   41,271     35,835     123,039     104,615  
Total cost of revenues   102,837     81,888     293,746     238,504  
Gross profit   254,819     179,262     711,101     481,326  
Operating expenses (1):
Sales and marketing 166,491 117,899 511,607 364,530
Research and development 75,018 55,822 211,306 158,946
General and administrative 40,085 33,581 117,393 93,357
Legal settlements   —     —     270,000     —  
Total operating expenses   281,594     207,302     1,110,306     616,833  
Loss from operations (26,775 ) (28,040 ) (399,205 ) (135,507 )
Interest expense (8,389 ) (7,839 ) (24,746 ) (23,124 )
Interest income and other income (expense), net   1,783     (3,952 )   4,745     1,273  
Loss before provision for income taxes (33,381 ) (39,831 ) (419,206 ) (157,358 )
Provision for income taxes   2,877     1,199     9     3,690  
Net loss $ (36,258 ) $ (41,030 ) $ (419,215 ) $ (161,048 )
Net loss per share - Basic and Diluted $ (0.22 ) $ (0.26 ) $ (2.56 ) $ (1.04 )

Weighted-average shares used to compute net loss per share - Basic and Diluted

  165,378,836     156,930,506     163,767,329     154,352,037  
 
 
                 
(1) Includes total stock-based compensation expense for stock-based awards as follows:
Three Months Ended Nine Months Ended
September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015
 
Cost of revenues:
Subscription $ 7,140 $ 5,951 $ 20,698 $ 17,183
Professional services and other 7,150 5,804 20,045 16,788
Sales and marketing 31,898 26,011 95,757 74,690
Research and development 21,376 18,130 62,956 51,703
General and administrative   13,523     9,215     35,004     29,167  
Total $ 81,087   $ 65,111   $ 234,460   $ 189,531  
                 
 
 

ServiceNow, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
   
September 30, 2016 December 31, 2015
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 325,067 $ 412,305
Short-term investments 481,813 388,945
Accounts receivable, net 220,089 203,333

Current portion of deferred commissions

62,657 51,976

Prepaid expenses and other current assets

  37,281   29,076
Total current assets 1,126,907 1,085,635
Deferred commissions, less current portion 44,597 33,016
Long-term investments 281,353 422,667
Property and equipment, net 176,106 144,714
Intangible assets, net 60,726 43,005
Goodwill 84,425 55,669
Other assets   39,000   22,346
Total assets $ 1,813,114 $ 1,807,052
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 30,012 $ 37,369
Accrued expenses and other current liabilities 124,670 101,264
Current portion of deferred revenue   743,657   593,003
Total current liabilities 898,339 731,636
Deferred revenue, less current portion 18,048 10,751
Convertible senior notes, net 499,280 474,534
Other long-term liabilities 34,944 23,317
Stockholders’ equity   362,503   566,814
Total liabilities and stockholders’equity $ 1,813,114 $ 1,807,052
 
 

ServiceNow, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
                 
Three Months Ended Nine Months Ended
September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015
 
Cash flows from operating activities:
Net loss $ (36,258 ) $ (41,030 ) $ (419,215 ) $ (161,048 )
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization 22,264 15,100 59,716 43,957
Amortization of premiums on investments 946 1,768 3,745 5,380
Amortization of deferred commissions 20,785 16,774 57,742 48,055
Amortization of debt discount and issuance costs 8,389 7,839 24,746 23,124
Stock-based compensation 81,087 65,111 234,460 189,531
Deferred income tax 1,331 — (5,095 ) —
Other (1,389 ) (1,153 ) (857 ) (5,393 )
Changes in operating assets and liabilities, net of effect of business combinations:
Accounts receivable (22,728 ) (16,642 ) (15,761 ) (5,303 )
Deferred commissions (30,793 ) (21,336 ) (79,190 ) (54,168 )
Prepaid expenses and other assets (1,732 ) (889 ) (11,733 ) (8,915 )
Accounts payable (8,353 ) 6,678 (8,625 ) 8,312
Deferred revenue 46,620 25,255 151,019 115,812
Accrued expenses and other liabilities   16,549     6,174     36,282     11,856  
Net cash provided by operating activities(1)   96,718     63,649     27,234     211,200  
Cash flows from investing activities:
Purchases of property and equipment (31,183 ) (20,768 ) (84,112 ) (62,588 )
Business combinations, net of cash acquired — — (34,297 ) (1,100 )
Purchases of other intangibles — — (14,850 ) —
Purchases of investments (254,032 ) (211,671 ) (434,397 ) (543,167 )
Purchases of strategic investments — — — (10,000 )
Sale of investments 173,403 104,269 266,288 242,631
Maturities of investments 59,932 56,972 218,452 203,632
Restricted cash   289     (474 )   (322 )   (408 )
Net cash used in investing activities   (51,591 )   (71,672 )   (83,238 )   (171,000 )
Cash flows from financing activities:
Proceeds related to deferred payments on purchase of other intangibles — — 4,100 —
Payments related to deferred payments on purchase of other intangibles (1,025 ) — (1,025 ) —
Proceeds from employee stock plans 20,912 31,663 55,063 73,347
Taxes paid related to net share settlement of equity awards (28,781 ) (157 ) (88,567 ) (12,603 )
Payments on financing obligation   (113 )   (112 )   (336 )   (112 )
Net cash (used in) provided by financing activities(1)   (9,007 )   31,394     (30,765 )   60,632  
Foreign currency effect on cash and cash equivalents   (166 )   348     (469 )   (4,214 )
Net increase (decrease) in cash and cash equivalents 35,954 23,719 (87,238 ) 96,618
Cash and cash equivalents at beginning of period   289,113     325,354     412,305     252,455  
Cash and cash equivalents at end of period $ 325,067   $ 349,073   $ 325,067   $ 349,073  
 
Calculation of free cash flow (a non-GAAP measure):
Net cash provided by operating activities(1) $ 96,718 $ 63,649 $ 27,234 $ 211,200
Purchases of property and equipment (31,183 ) (20,768 ) (84,112 ) (62,588 )
Cash paid for legal settlements   —     —     267,500     —  
Free cash flow $ 65,535   $ 42,881   $ 210,622   $ 148,612  
 
Calculation of free cash flow margin (a non-GAAP measure):
GAAP net cash provided by operating activities as % of revenue(1) 27 % 24 % 3 % 29 %
Purchases of property and equipment as % of revenue (9 %) (8 %) (9 %) (8 %)
Cash paid for legal settlements as a % of revenue   0 %   0 %   27 %   0 %
Free cash flow margin   18 %   16 %   21 %   21 %
                           
(1) During the nine months ended September 30, 2016, we early adopted Accounting Standards Update 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which addresses among other items, updates to the presentation and treatment of excess tax benefits related to stock-based compensation. We have adopted changes to the condensed consolidated statements of cash flows on a retrospective basis. This resulted in a $0.6 million increase in net cash provided by operating activities and a corresponding $0.6 million decrease in net cash provided by financing activities for the three months ended September 30, 2015, and a $1.2 million increase in net cash provided by operating activities and a corresponding $1.2 million decrease in net cash provided by financing activities for the nine months ended September 30, 2015.
 
 

ServiceNow, Inc.
Results of Operations GAAP to Non-GAAP Reconciliation
(in thousands except share and per share data)
(Unaudited)
           
Three Months Ended Nine Months Ended
September 30, 2016 September 30, 2015 Growth Rates September 30, 2016 September 30, 2015 Growth Rates
 
Subscription revenues:
GAAP subscription revenues $ 318,934 $ 223,208 43 % $ 877,035 $ 603,576 45 %
Increase in subscription deferred revenue   43,798     22,994     149,750     116,755  
Non-GAAP subscription billings $ 362,732   $ 246,202   47 % $ 1,026,785   $ 720,331   43 %
 
Professional services and other revenues:
GAAP professional services and other revenues $ 38,722 $ 37,942 2 % $ 127,812 $ 116,254 10 %
Increase (decrease) in professional services and other deferred revenue   2,822     2,261     1,269     (943 )
Non-GAAP professional services and other billings $ 41,544   $ 40,203   3 % $ 129,081   $ 115,311   12 %
 
Total Revenues:
GAAP total revenues $ 357,656 $ 261,150 37 % $ 1,004,847 $ 719,830 40 %
Increase in total deferred revenue from consolidated statements of cash flows   46,620     25,255     151,019     115,812  
Non-GAAP total billings $ 404,276   $ 286,405   41 % $ 1,155,866   $ 835,642   38 %
 
Cost of revenues:
GAAP subscription cost of revenues $ 61,566 $ 46,053 $ 170,707 $ 133,889
Add back:
Stock-based compensation (7,140 ) (5,951 ) (20,698 ) (17,183 )
Amortization of purchased intangibles (1)   (3,425 )   (2,774 )   (9,299 )   (8,326 )
Non-GAAP subscription cost of revenues $ 51,001   $ 37,328   $ 140,710   $ 108,380  
 
GAAP professional services and other cost of revenues $ 41,271 $ 35,835 $ 123,039 $ 104,615
Add back:
Stock-based compensation   (7,150 )   (5,804 )   (20,045 )   (16,788 )
Non-GAAP professional services and other cost of revenues $ 34,121   $ 30,031   $ 102,994   $ 87,827  
 

Gross profit (loss):

GAAP subscription gross profit $ 257,368 $ 177,155 $ 706,328 $ 469,687
Add back:
Stock-based compensation 7,140 5,951 20,698 17,183
Amortization of purchased intangibles   3,425     2,774     9,299     8,326  
Non-GAAP subscription gross profit $ 267,933   $ 185,880   $ 736,325   $ 495,196  
 

GAAP professional services and other gross (loss) profit

$ (2,549 ) $ 2,107 $ 4,773 $ 11,639
Add back:
Stock-based compensation   7,150     5,804     20,045     16,788  
Non-GAAP professional services and other gross profit $ 4,601   $ 7,911   $ 24,818   $ 28,427  
 
GAAP gross profit $ 254,819 $ 179,262 $ 711,101 $ 481,326
Add back:
Stock-based compensation 14,290 11,755 40,743 33,971
Amortization of purchased intangibles   3,425     2,774     9,299     8,326  
Non-GAAP gross profit $ 272,534   $ 193,791   $ 761,143   $ 523,623  
 
Operating expenses:
GAAP sales and marketing expenses 166,491 117,899 511,607 364,530
Add back:
Stock-based compensation (31,898 ) (26,011 ) (95,757 ) (74,690 )
Amortization of purchased intangibles   (121 )   (145 )   (195 )   (436 )
Non-GAAP sales and marketing expenses $ 134,472   $ 91,743   $ 415,655   $ 289,404  
 
GAAP research and development expenses 75,018 55,822 211,306 158,946
Add back:
Stock-based compensation (21,376 ) (18,130 ) (62,956 ) (51,703 )
Amortization of purchased intangibles   (455 )   —     (758 )   —  
Non-GAAP research and development expenses $ 53,187   $ 37,692   $ 147,592   $ 107,243  
 
GAAP general and administrative expenses 40,085 33,581 117,393 93,357
Add back:
Stock-based compensation (13,523 ) (9,215 ) (35,004 ) (29,167 )
Amortization of purchased intangibles (1) (272 ) (24 ) (646 ) (70 )
Business combination and other related costs   (17 )   —     (962 )   —  
Non-GAAP general and administrative expenses $ 26,273   $ 24,342   $ 80,781   $ 64,120  
 
GAAP legal settlements $ — $ — $ 270,000 $ —
Add back:
Legal settlements   —     —     (270,000 )   —  
Non-GAAP legal settlements $ —   $ —   $ —   $ —  
 
Income (loss) from operations:
GAAP loss from operations (26,775 ) (28,040 ) (399,205 )

 

(135,507 )
Add back:
Stock-based compensation 81,087 65,111 234,460 189,531
Amortization of purchased intangibles (1) 4,273 2,943 10,898 8,832
Business combination and other related costs 17 — 962 —
Legal settlements   —     —     270,000     —  
Non-GAAP income from operations $ 58,602   $ 40,014   $ 117,115   $ 62,856  
 
Net income (loss):
GAAP net loss (36,258 ) (41,030 ) (419,215 ) (161,048 )
Add back:
Stock-based compensation 81,087 65,111 234,460 189,531
Amortization of purchased intangibles (1) 4,273 2,943 10,898 8,832
Business combination and other related costs 17 — 962 —

Legal settlements

— — 270,000 —
Amortization of debt discount and issuance costs for the convertible senior notes 8,389 7,839 24,746 23,124
Income tax expense effects related to the above adjustments (1)   (17,977 )   (9,873 )   (42,262 )   (25,642 )
Non-GAAP net income $ 39,531   $ 24,990   $ 79,589   $ 34,797  
 
Net income (loss) per share - basic and diluted:
GAAP net loss per share - basic and diluted $ (0.22 ) $ (0.26 ) $ (2.56 ) $ (1.04 )
Non-GAAP net income per share - basic $ 0.24   $ 0.16   $ 0.49   $ 0.23  
Non-GAAP net income per share - diluted $ 0.23   $ 0.15   $ 0.46   $ 0.21  
 
 
Weighted-average shares used to compute net income (loss) per share - basic   165,378,836     156,930,506     163,767,329     154,352,037  
 
GAAP weighted-average shares used to compute net loss per share - diluted 165,378,836 156,930,506 163,767,329 154,352,037

Effect of dilutive securities (stock options, restricted stock units and common stock subject to repurchase)

  8,643,420     11,620,665     9,097,348     13,495,586  
Non-GAAP weighted-average shares used to compute net income per share - diluted   174,022,256     168,551,171     172,864,677     167,847,623  
                         
(1) The Non-GAAP amounts presented for the three and nine months ended September 30, 2015 have been revised to exclude the amortization of other intangibles and their related tax effects.    
 
 

ServiceNow, Inc.
Reconciliation of Non-GAAP Financial Guidance
               
The financial guidance provided below is an estimate based on information available as of September 30, 2016. The company’s future performance and financial results are subject to risks and uncertainties, and actual results could differ materially from the guidance set forth below. Some of the factors that could affect the company’s financial results are stated above in this press release. More information on potential factors that could affect the company’s financial results is included from time to time in the company’s public reports filed with the SEC, including the company's Annual Report on Form 10-K filed on February 25, 2016, and the company's Form 10-Q for the three months ended September 30, 2016 to be filed with the SEC. The company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
 
Three Months Ended Three Months Ended Growth rates
December 31, 2016 December 31, 2015  
 
GAAP subscription revenue $335 - $340 million $245 million 37% - 39%
 
Increase in subscription deferred revenue 91 - 92 million 73 million
   

Non-GAAP subscription billings

$427 - $431 million

$318 million

34% - 36%
 
GAAP professional services and other revenue $41 million $41 million 0%
 
Increase in professional services and other deferred revenue 6 - 7 million 7 million
   

Non-GAAP professional services and other billings

$47 - $48 million

$48 million

(2%) - 0%
 
GAAP total revenue $376 - $381 million $286 million 32% - 33%
 
Increase in total deferred revenue from consolidated statements of cash flows 98 million 80 million
   

Non-GAAP total billings

$474 - $479 million

$366 million

30% - 31%
 
GAAP subscription gross margin 81%
 
Stock-based compensation expense 2%
 
Amortization of purchased intangibles 1%
 

Non-GAAP subscription gross margin

84%

 
GAAP professional services and other gross margin 1%
 
Stock-based compensation expense 15%
 

Non-GAAP professional services and other gross margin

16%

 
GAAP total gross margin 72%
 
Stock-based compensation expense 4%
 
Amortization of purchased intangibles 1%
 

Non-GAAP total gross margin

77%

 
GAAP operating margin (6%)
 
Stock-based compensation expense 21%
 
Amortization of purchased intangibles 1%
 

Non-GAAP operating margin

16%

 
GAAP net cash provided by operating activities as % of revenue 37%
 
Purchases of property and equipment as % of revenue (7%)
 

Non-GAAP free cash flow margin

30%

 
GAAP weighted-average shares used to compute net loss per share - diluted 167 million
 
Effect of dilutive securities (stock options, restricted stock units) 9 million
 

Non-GAAP weighted-average shares used to compute net income per share - diluted

176 million

 
 
Twelve Months Ended Twelve Months Ended Growth rates
December 31, 2016 December 31, 2015  
GAAP subscription revenue $1,212 - $1,217 million $848 million 43%
 
Increase in subscription deferred revenue 241 - 242 million 190 million
   

Non-GAAP subscription billings

$1,454 - $1,458 million

 

$1,038 million

40%
 
GAAP professional services and other revenue $169 million $157 million 7%
 
Increase in professional services and other deferred revenue 7 - 8 million 6 million
   

Non-GAAP professional services and other billings

$176 - $177 million

$163 million

8% - 9%
 
GAAP total revenue $1,381 - $1,386 million $1,005 million 37% - 38%
 
Increase in total deferred revenue from consolidated statements of cash flows 249 million 196 million
   

Non-GAAP total billings

$1,630 - $1,635 million

 

$1,201 million

36%
 
GAAP operating margin (30%)
 
Stock-based compensation expense 23%
 
Amortization of purchased intangibles 1%
 
Legal settlements 19%
 

Non-GAAP operating margin

13%

 
GAAP net cash provided by operating activities as % of revenue 13%
 

Purchases of property and equipment as % of revenue

(8%)

 

Cash paid on legal settlements as a % of revenue

19%

 

Non-GAAP free cash flow margin

24%

 
GAAP weighted-average shares used to compute net loss per share - diluted 164 million
 
Effect of dilutive securities (stock options, restricted stock units) 9 million
 

Non-GAAP weighted-average shares used to compute net income per share - diluted

173 million

ServiceNow
Media Contact:
Joanne Blum, 310-489-7278
[email protected]
or
Investor Contact:
[email protected]

Source: ServiceNow


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Press Releases

Related Entities

Earnings