ServiceNow (NOW) Tops Q3 EPS by 27c
ServiceNow (NYSE: NOW) reported Q3 EPS of $3.72, $0.27 better than the analyst estimate of $3.45. Revenue for the quarter came in at $2.79 billion versus the consensus estimate of $2.75 billion.
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.
The following table summarizes our guidance for the fourth quarter 2024:
| Fourth Quarter 2024 |
| Fourth Quarter 2024 | |
| Amount | Year/Year |
| Constant Currency |
Subscription revenues | $2,875 - $2,880 | 21.5% - 22% |
| 20.5% |
|
|
|
|
|
cRPO |
| 21.5% |
| 21.5% |
|
|
|
|
|
|
|
|
| Margin (%)(2) |
Income from operations |
|
|
| 29% |
|
|
|
|
|
|
| Amount |
|
|
Weighted-average shares used to compute diluted net income per share |
| 209 |
|
|
| (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 30-day average of foreign exchange rates for September 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 |
| Full-Year 2024 | |
| Amount | Year/Year |
| Constant Currency |
Subscription revenues | $10,655 - $10,660 | 23% |
| 22.5% |
|
|
|
|
|
|
|
|
| Margin (%)(2) |
Subscription gross profit |
|
|
| 84.5% |
Income from operations |
|
|
| 29.5% |
Free cash flow |
|
|
| 31% |
|
|
|
|
|
|
| Amount |
|
|
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 30-day average of foreign exchange rates for September 2024 for entities reporting in currencies other than U.S. Dollars. | |
Note: Numbers are rounded for presentation purposes and may not foot. | ||
For earnings history and earnings-related data on ServiceNow (NOW) click here.