UPDATE: ServiceNow (NOW) Tops Q2 EPS by 6c
ServiceNow (NYSE: NOW) reported Q2 EPS of $0.49, $0.06 better than the analyst estimate of $0.43. Revenue for the quarter came in at $631.1 million versus the consensus estimate of $618.44 million.
Outlook
Our guidance is based on foreign exchange rates as of June 30, 2018 and includes GAAP and non-GAAP financial measures.
The following table summarizes our guidance for the third quarter 2018:
| Third Quarter 2018GAAP Guidance | Third Quarter 2018 Non-GAAP Guidance(1) | |||||||||||
| Amount($ millions) | Year/Year Growth (%)(2) | Amount($ millions) | Year/Year Growth (%)(2) | AdjustedAmount ($ millions)(3) | Adjusted Year/Year Growth(%)(2) | ||||||||
| Subscription revenues | $610 - $615 | 36% - 37% | $611 - $616 | 36% - 37% | |||||||||
| Subscription billings | $648 - $653 | 29% - 30% | $649 - $654 | 30% - 31% | |||||||||
| Margin (%) | |||||||||||||
| Income from operations | 21% | ||||||||||||
| Amount(millions) | |||||||||||||
| Weighted-average shares used to compute diluted net income per share | 188 | ||||||||||||
| (1) | We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Guidance” for a reconciliation of GAAP to non-GAAP measures. | |
| (2) | The comparison period amounts used to calculate growth rates have been restated from previously reported amounts to reflect the impact of the full retrospective adoption of Topic 606. For more information regarding Topic 606, refer to our Form 10-Q filed for the quarter ended March 31, 2018. | |
| (3) | Non-GAAP subscription revenues are adjusted for constant currency. Non-GAAP subscription billings are adjusted for constant currency and constant billings duration. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Guidance” for a reconciliation of GAAP to non-GAAP measures. | |
The following table summarizes our updated guidance for fiscal year 2018:
Full-Year 2018GAAP Guidance | Full-Year 2018 Non-GAAP Guidance(1) | ||||||||||||
| Amount($ millions) | Year/Year Growth (%)(2) | Amount($ millions) | Year/Year Growth (%)(2) | AdjustedAmount ($ millions)(3) | AdjustedYear/ YearGrowth (%)(2) | ||||||||
| Subscription revenues | $2,405 - $2,415 | 38% - 39% | $2,372 - $2,382 | 36% - 37% | |||||||||
| Subscription billings | $2,815 - $2,825 | 33% | $2,779 - $2,789 | 31% | |||||||||
| Margin (%) | |||||||||||||
| Subscription gross profit | 85% | ||||||||||||
| Income from operations | 20% | ||||||||||||
| Free cash flow | 27% | ||||||||||||
For earnings history and earnings-related data on ServiceNow (NOW) click here.