ServiceNow (NOW) Tops Q3 EPS by 6c

ServiceNow (NYSE: NOW) reported Q3 EPS of $0.38, $0.08 better than the analyst estimate of $0.32. Revenue for the quarter came in at $498.17 million versus the consensus estimate of $491.65 million.

GUIDANCE:

For the fourth quarter of 2017, we expect:

• GAAP subscription revenues between $485 and $490 million, representing 41% to 42% year-over-year growth (or non-GAAP subscription revenues between $473 and $478 million, representing 37% to 39% year-over-year growth adjusted for constant currency).
• GAAP professional services and other revenues of $46 million, representing 12% year-over-year growth (or non-GAAP professional services and other revenues of $44 million, representing 7% year-over-year growth adjusted for constant currency).
• GAAP total revenues between $531 and $536 million, representing 38% to 39% year-over-year growth (or non-GAAP total revenues between $517 and $522 million, representing 34% to 35% year-over-year growth adjusted for constant currency).
• Non-GAAP subscription billings and non-GAAP subscription billings adjusted for constant currency and constant billings durations between $645 and $650 million, representing 33% to 34% year-over-year growth.
• Non-GAAP professional services and other billings of $49 million, representing a 4% decline year-over-year (or $47 million, representing an 8% decline year-over-year adjusted for constant currency).
• Non-GAAP total billings between $694 and $699 million, representing 30% to 31% year-over-year growth (or between $692 and $697 million, representing 29% to 30% year-over-year growth adjusted for constant currency and constant billings duration).
• Non-GAAP operating margin of 17%.
• Non-GAAP weighted average shares used to compute diluted net income per share of approximately 181 million shares.

For the full year 2017, we expect:

• GAAP subscription revenues between $1,728 and $1,733 million, representing 41% to 42% year-over-year growth (or non-GAAP subscription revenues between $1,722 and $1,727 million, representing 41% year-over-year growth adjusted for constant currency).
• GAAP professional services and other revenues of $190 million, representing 13% year-over-year growth or (non-GAAP professional services and other revenues adjusted for constant currency of $189 million, representing 12% year-over-year growth).
• GAAP total revenues between $1,918 and $1,923 million, representing 38% year-over-year growth (or non-GAAP total revenues between $1,911 and $1,916 million, representing 37% to 38% year-over-year growth adjusted for constant currency).
• Non-GAAP subscription billings between $2,080 and $2,085 million, representing 38% year-over-year growth (or between $2,077 and $2,082 million, representing 37% to 38% year-over-year growth adjusted for constant currency and constant billings duration).
• Non-GAAP professional services and other billings of $194 million, or 8% year-over-year growth or (non-GAAP professional services and other billings adjusted for constant currency of $193 million, representing 7% year-over-year growth).
• Non-GAAP total billings between $2,274 and $2,279 million, representing 35% year-over-year growth (or between $2,270 and $2,275 million, representing 34% to 35% year-over-year growth adjusted for constant currency and constant billings duration).
• Non-GAAP subscription gross margin of 85%.
• Non-GAAP professional services and other gross margin of 16%.
• Non-GAAP total gross margin of 78%.
• Non-GAAP operating margin of 16%.
• Non-GAAP free cash flow margin of 25%.
• Non-GAAP weighted average shares used to compute diluted net income per share of approximately 179 million shares.

For earnings history and earnings-related data on ServiceNow (NOW) click here.

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