ManTech International Corp
Change company Symbol lookup
Select an option...
MANT ManTech International Corp
AMPE Ampio Pharmaceuticals Inc
MA Mastercard Inc
RJF Raymond James Financial Inc
PACW PacWest Bancorp
MAPS WM Technology Inc
AR Antero Resources Corp
PAYX Paychex Inc
AEHL Antelope Enterprise Holdings Ltd
NOV Nov Inc
Go

Industrials : Professional Services | Small Cap Value
Company profile

ManTech International Corporation is a provider of technology solutions and services for the United States intelligence community, defence and federal civilian agencies. The Company is engaged in offering a spectrum cyber, data collection and analytics, enterprise information technology (IT) and systems engineering and software application development solutions that supports national and homeland security. It provides services and solutions that support missions of national priority, such as global cyber operations, military operational readiness, information technology (IT) and digital modernization, and national security threat intelligence and analytics. It focuses on cyber network operations, defence, analytics, hardening and resilience, security orchestration, automation and response, range and training, and risk management and compliance. It also provides model-based systems engineering, predictive analytics, data/computational science, and cloud engineering solutions.

Closing Price
$73.52
Day's Change
0.32 (0.44%)
Bid
--
Ask
--
B/A Size
--
Day's High
73.83
Day's Low
72.30
Volume
(Heavy Day)
Volume:
186,988

10-day average volume:
140,882
186,988

ServiceNow Reports Third Quarter 2021 Financial Results

4:10 pm ET October 27, 2021 (BusinessWire) Print

ServiceNow (NYSE: NOW), the leading digital workflow company making work, work better for people, today announced financial results for its third quarter ended September 30, 2021, with subscription revenues of $1,427 million in Q3 2021, representing 31% year-over-year growth, 30% adjusted for constant currency.

As of September 30, 2021, current remaining performance obligations ("cRPO"), contract revenue that will be recognized as revenue in the next 12 months, was $5.0 billion, representing 32% year-over-year growth and 32% adjusted for constant currency. The company now has 1,266 total customers with more than $1 million in annual contract value, representing 25% year-over-year growth in customers.

"We reported another significant beat and raise quarter in Q3," said ServiceNow President and CEO Bill McDermott. "Leaders recognize their technology architecture is their business architecture. As this digital transformation market is accelerating, ServiceNow's platform is creating unmatched customer and employee experiences. We remain hungry and humble in our pursuit of becoming the defining enterprise software company of the 21st century. Our focus is on value creation for our stakeholders by making the world work better for everyone."

ServiceNow CFO Gina Mastantuono said, "Q3 was another fantastic quarter with continued outperformance across all of our growth and profitability guidance metrics. The consistency of our results exemplifies the strength of our product portfolio and the team's focus on building deep customer relationships. We are well positioned as the workflow standard on our journey to becoming a $15+ billion revenue company."

During the quarter, ServiceNow delivered the Now Platform Rome release, including hundreds of innovations to help companies workflow the biggest challenges of the hybrid work era and scale automation and app development across the enterprise. ServiceNow deepened its strategic partnership with Microsoft to integrate Employee Center directly with Teams and expand investments in co-innovation and go-to-market efforts. The company completed the acquisitions of Swarm64, a leader in database performance and scale, and Mapwize, an indoor-mapping and wayfinding company. ServiceNow also recently announced a strategic partnership with process mining market leader Celonis to help companies maximize the impact and return on their digital transformation investments. Furthering its vision to workflow a better world, the company accelerated its global commitment to achieve Net-Zero greenhouse gas emissions by 2030 and introduced a new integrated ESG solution that helps companies activate ESG strategies, programs, and initiatives, from enhancing diversity and inclusion and reducing carbon emissions to enabling business resilience.

Third Quarter 2021 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the third quarter 2021:

                                             Third Quarter 2021                                     Third Quarter 2021 Non-GAAP Results(1)
                                                                   GAAP Results
                                                    ----------------------------------------                       --------------------------------------------------------------------------------
                                               Amount            Year/Year                 Amount            Year/Year             Adjusted             Adjusted
                                                            ($ millions)           Growth (%)                              ($ millions)           Growth (%)               Amount            Year/Year
                                                                                                                                                                  ($ millions)(2)           Growth (%)
--------------------------------------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- --------------------
                              Subscription revenues               $1,427                  31%                     $1,416                  30%
           Professional services and other revenues                  $85                  39%                        $84                  38%
                                     Total revenues               $1,512                  31%                     $1,500                  30%
                                              
                              Subscription billings                     $1,380                  28%               $1,365                  26%
           Professional services and other billings                        $84                  42%                  $83                  41%
                                     Total billings                     $1,465                  29%               $1,450                  27%
                                              
                                               Amount            Year/Year                   Adjusted             Adjusted
                                                            ($ billions)           Growth (%)                                                                              Amount            Year/Year
                                                                                                                                                                  ($ billions)(2)           Growth (%)
--------------------------------------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- --------------------
                                               cRPO                 $5.0                  32%                       $5.0                  32%
                                                RPO                 $9.7                  34%                       $9.7                  34%
                                              
                                               Amount           Margin (%)                 Amount           Margin (%)    
                                                            ($ millions)                                                   ($ millions)
--------------------------------------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- --------------------
                          Subscription gross profit               $1,163                  81%                 $1,213                  85%    
Professional services and other gross profit (loss)                 ($1)                 (1%)                    $14                  17%    
                                 Total gross profit               $1,162                  77%                 $1,227                  81%    
                             Income from operations                  $74                   5%                   $391                  26%    
          Net cash provided by operating activities                 $320                  21%          
                                     Free cash flow                       $228                  15%    
                                              
                                               Amount         Earnings per                 Amount         Earnings per    
                                                            ($ millions)        Basic/Diluted                              ($ millions)        Basic/Diluted
                                                                                    Share ($)                                                      Share ($)
--------------------------------------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- --------------------
(1)                  (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 "GAAP to Non-GAAP Reconciliation" for a reconciliation of GAAP to non-GAAP measures.
(2)                  (2)                    Non-GAAP adjusted subscription revenues, professional services and other revenues, total revenues and professional services and other billings, cRPO and RPO are adjusted for constant currency. Non-GAAP adjusted subscription billings and total 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 "GAAP to Non-GAAP Reconciliation" for a reconciliation of GAAP to non-GAAP measures.
       

Financial Outlook

Our guidance includes GAAP and non-GAAP financial measures.

The following table summarizes our guidance for the fourth quarter 2021:

                                                                                    Fourth Quarter 2021                         Fourth Quarter 2021
                                                                                                          GAAP Guidance                                              Non-GAAP Guidance(1)
                                                                                           ----------------------------------------                       ----------------------------------------
                                                                                      Amount            Year/Year                 Amount            Year/Year
                                                                                                ($ millions)(2)           Growth (%)                           ($ millions)(2)           Growth (%)
-----------------------------------------------------------------------------------------  -------------------- --------------------                      -------------------- --------------------
Subscription revenues                                                                           $1,515 - $1,520                  28%      
                               Includes negative impact of foreign currency of $1 million           
                         Note:
Subscription billings                                                                                 $2,305 - $2,310                  26%
                               Includes negative impact of foreign currency of $2 million           
                         Note:
                               Includes negative impact of billings duration of $7 million
           
                                                                                 
cRPO                                                                                                          27%      
                               Includes negative impact of foreign currency of 150 bps              
                         Note:
                                                                                          Margin (%)
-----------------------------------------------------------------------------------------  -------------------- -------------------- -------------------- -------------------- --------------------
Income from operations                                                                                              22%
                                                                                 
                                                                                            Amount  
                                                                                                                                                                    (millions)
-----------------------------------------------------------------------------------------  -------------------- --------------------                      -------------------- --------------------
(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.

The following table summarizes our guidance for the full-year 2021:

                                                                                       Full-Year 2021                              Full-Year 2021
                                                                                                           GAAP Guidance                                              Non-GAAP Guidance(1)
                                                                                            ----------------------------------------                       ----------------------------------------
                                                                                       Amount            Year/Year                 Amount            Year/Year
                                                                                                 ($ millions)(2)           Growth (%)                           ($ millions)(2)           Growth (%)
------------------------------------------------------------------------------------------  -------------------- --------------------                      -------------------- --------------------
Subscription revenues                                                                            $5,565 - $5,570                  30%      
                         Note: Includes foreign currency benefit of $91 million                      
Subscription billings                                                                                  $6,379 - $6,384                  28%
                         Note: Includes foreign currency benefit of $90 million                      
                               Includes positive impact of billings duration of $18 million
           
                                                                                           Margin (%)
------------------------------------------------------------------------------------------  -------------------- --------------------                      -------------------- --------------------
Subscription gross profit                                                                                            85%
Income from operations                                                                                             25.0%
Free cash flow                                                                                                     31.5%
                                                                                  
                                                                                             Amount  
                                                                                                                                                                     (millions)
------------------------------------------------------------------------------------------  -------------------- --------------------                      -------------------- --------------------
(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.

Conference Call Details

The conference call will begin at 2 p.m. Pacific Time (21:00 GMT) on October 27, 2021. Interested parties may listen to the call by dialing (888) 330'2022 (Passcode: 8135305), or if outside North America, by dialing (646) 960'0690 (Passcode: 8135305). Individuals may access the live teleconference from this webcast.

https://events.q4inc.com/attendee/597072383

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 (647) 362'9199 (Passcode: 8135305).

Investor Presentation Details

An investor presentation providing additional information, including forward-looking guidance, and analysis can be found at http://investors.servicenow.com.

Upcoming Investor Conferences

ServiceNow will have executives present at four upcoming investor conferences.

These include:

Chief Financial Officer Gina Mastantuono will deliver the ESG keynote at the 2021 RBC Capital Markets Technology, Internet, Media and Telecommunications Virtual Conference on Wednesday, November 17 at 9:30 a.m. PT. Chief Executive Officer Bill McDermott will deliver the keynote at the Credit Suisse 25th Annual Technology Conference on Tuesday, November 30 at 10:15 a.m. PT. Chief Financial Officer Gina Mastantuono will present at the UBS Global TMT Conference on Tuesday, December 7 at 10:00 a.m. PT. Senior Vice President of IT Workflow Products Pablo Stern will present at the Barclays Global Technology, Media and Telecommunications Conference on Wednesday, December 8 at 10:15 a.m. PT.

The live webcasts will be accessible on the investor relations section of the ServiceNow website at http://investors.servicenow.com and archived on the ServiceNow site for a period of 30 days.

Statement Regarding Use of Non-GAAP Financial Measures

We report 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.

Adjusted revenues. We present revenues adjusted for constant currency to provide a framework for assessing how our business performed excluding the effect of foreign currency rate fluctuations. To present this information, 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 Q3 2020, the average exchange rates in effect for our major currencies were 1 USD to 0.856 Euros and 1 USD to 0.775 British Pound Sterling ("GBP"), rather than the actual average exchange rates in effect during the current period (for Q3 2021, the average exchange rates in effect for our major currencies were 1 USD to 0.847 Euros and 1 USD to 0.724 GBP). We believe the presentation of revenues adjusted for constant currency facilitates the comparison of revenues year-over-year. Billings and Adjusted billings. We define subscription billings, professional services and other billings, and total billings as the applicable revenue plus the applicable change in deferred revenue, unbilled receivables and customer deposits as presented or derived from the statement of cash flows. We adjust billings for constant currency, as described above, and for constant duration by replacing the portion of multi-year billings in excess of twelve months during the current period with the portion of multi-year billings in excess of twelve months during the comparison period. We believe these adjustments facilitate greater comparability in our billings information year-over-year. We believe billings is one indicator of the performance of our business. Adjusted remaining performance obligations and current remaining performance obligations. We present cRPO and remaining performance obligations ("RPO") and related growth rates adjusted 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 Q3 2020, the end of the period exchange rates in effect for our major currencies were 1 USD to 0.852 Euros and 1 USD to 0.777 GBP), rather than the actual end of the period exchange rates in effect during the current period (for Q3 2021, the end of the period exchange rates in effect for our major currencies were 1 USD to 0.862 Euros and 1 USD to 0.745 GBP). 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, and the related income tax effect of these adjustments. 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 (used in) operating activities plus cash paid 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.

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: (i) the continued impact and duration of COVID-19 on our business, future financial performance and global economic conditions including the effectiveness, extent and duration of mitigation efforts such as "shelter in place", availability of vaccinations and similar directives; (ii) our ability to compete successfully against existing and new competitors, (iii) our ability to comply with evolving privacy laws, data transfer restrictions, and other foreign and domestic standards related to data and the Internet, (iv) our ability to predict, prepare for and respond promptly to rapidly evolving technological, market and customer developments, (v) errors, interruptions, delays, or security breaches in or of our service or data centers, (vi) 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, (vii) our ability to develop and gain customer acceptance of new and improved products and services, including those acquired through strategic transactions, and (viii) material changes in the value of foreign currencies relative to the U.S. Dollar. Additionally, these forward-looking statements involve risk, uncertainties and assumptions, including those related to the continued impacts of COVID-19 on our business, future financial performance and global economic conditions. Many of these assumptions relate to matters that are beyond our control and changing rapidly, including, but not limited to, the timeframes for and severity of social distancing and other mitigation requirements, the timing of headwinds from COVID-19, the continued impact of COVID-19 on new or existing customers' purchasing decisions and the length of our sales cycles, renewal timing or billings terms, particularly for customers in certain industries highly affected by COVID-19. Significant variation from the assumptions underlying our forward-looking statements could cause our actual results to vary, and the impact could be significant.

Further information on these and other factors that could affect our financial results are included in our Form 10-K filed for the year ended December 31, 2020, our Form 10-Q that will be filed for the quarter ended September 30, 2021 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) is making the world of work, work better for people. Our cloud-based platform and solutions deliver digital workflows that create great experiences and unlock productivity for employees and the enterprise. For more information, visit: www.servicenow.com.

(C) 2021 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                                                                            Nine Months Ended
                                                                              ------------------------------------------------------------------------------------                            ------------------------------------------------------------------------------------
                                                                      September 30,                        September 30,                        September 30,                        September 30,
                                                                                             2021                                                    2020                                                    2021                                                    2020
                                                                              --------------------------------                        --------------------------------                        --------------------------------                        --------------------------------
Revenues:                                                                                                                            
                                                                              $       1,427     $       1,091     $       4,050     $       3,102  
   Subscription
                                                                                         85                61               232               167  
   Professional services and other
                                                                              ------------  --------------------                      ------------  --------------------                      ------------  --------------------                      ------------  --------------------
                                                                                      1,512             1,152             4,282             3,269  
      Total revenues
                                                                              ------------  --------------------                      ------------  --------------------                      ------------  --------------------                      ------------  --------------------
Cost of revenues (1):                                                                                                                
                                                                                        264               189               740               521  
   Subscription
                                                                                         86                63               239               187  
   Professional services and other
                                                                              ------------  --------------------                      ------------  --------------------                      ------------  --------------------                      ------------  --------------------
                                                                                        350               252               979               708  
      Total cost of revenues
                                                                              ------------  --------------------                      ------------  --------------------                      ------------  --------------------                      ------------  --------------------
                                                                                      1,162               900             3,303             2,561  
         Gross profit
                                                                              ------------  --------------------                      ------------  --------------------                      ------------  --------------------                      ------------  --------------------
Operating expenses (1):                                                                                                              
                                                                                        579               454             1,660             1,321  
   Sales and marketing
                                                                                        358               268             1,005               740  
   Research and development
                                                                                        151               109               416               319  
   General and administrative
                                                                              ------------  --------------------                      ------------  --------------------                      ------------  --------------------                      ------------  --------------------
                                                                                      1,088               831             3,081             2,380  
      Total operating expenses
                                                                              ------------  --------------------                      ------------  --------------------                      ------------  --------------------                      ------------  --------------------
                                                                                         74                69               222               181  
         Income from operations
Interest expense                                                                         (7 )                                 (8 )                                (21 )                                (25 )
Other income, net                                                                         1               (35 )                                 16               (20 )
                                                                              ------------  --------------------                      ------------  --------------------                      ------------  --------------------                      ------------  --------------------
                                                                                         68                26               217               136  
         Income before income taxes
Provision for (benefit from) income taxes                                                 5                13                13                34  
                                                                              ------------  --------------------                      ------------  --------------------                      ------------  --------------------                      ------------  --------------------
                                                                              $          63     $          13     $         204     $         102  
         Net income
                                                                              ====== ====== ====================                      ====== ====== ====================                      ====== ====== ====================                      ====== ====== ====================
Net income per share - basic                                                  $        0.32     $        0.07     $        1.03     $        0.53  
                                                                              ====== ====== ====================                      ====== ====== ====================                      ====== ====== ====================                      ====== ====== ====================
Net income per share - diluted                                                $        0.31     $        0.06     $        1.00     $        0.50  
                                                                              ====== ====== ====================                      ====== ====== ====================                      ====== ====== ====================                      ====== ====== ====================
                                                                                        199               193               198               193  
         Weighted-average shares used to compute net income per share - basic
                                                                              ============  ====================                      ============  ====================                      ============  ====================                      ============  ====================
(1) Includes stock-based compensation as follows:
                                                    Three Months Ended                                                                            Nine Months Ended
                                   ------------------------------------------------------------------------------------                            ------------------------------------------------------------------------------------
                           September 30,                        September 30,                        September 30,                        September 30,
                                                  2021                                                    2020                                                    2021                                                    2020
                                   --------------------------------                        --------------------------------                        --------------------------------                        --------------------------------
Cost of revenues:                                                                         
                                   $          33     $          26     $          95     $          72  
   Subscription
                                              15                13                43                38  
   Professional services and other
Operating expenses:                                                                       
                                             101                79               293               228  
   Sales and marketing
                                             102                74               288               203  
   Research and development
                                                                      ServiceNow, Inc.
                                                            Condensed Consolidated Balance Sheets
                                                                        (in millions)
                                                                         (unaudited)
                                                                
                                                        September 30,                         December 31,
                                                                               2021                                                     2020
                                                                --------------------------------                        ----------------------------------
Assets                                                                             
Current assets:                                                                    
                                                                $       1,400     $         1,677  
   Cash and cash equivalents
                                                                        1,631               1,415  
   Short-term investments
                                                                          776               1,009  
   Accounts receivable, net
                                                                          268                 229  
   Current portion of deferred commissions
                                                                          213                 192  
   Prepaid expenses and other current assets
                                                                ------------  --------------------                      --------------  --------------------
                                                                        4,288               4,522  
      Total current assets
Deferred commissions, less current portion                                524                 444  
Long-term investments                                                   1,384               1,468  
Property and equipment, net                                               740                 660  
Operating lease right-of-use assets                                       606                 454  
Intangible assets, net                                                    302                 153  
Goodwill                                                                  770                 241  
Deferred tax assets                                                       694                 673  
Other assets                                                              170                 100  
                                                                ------------  --------------------                      --------------  --------------------
                                                                $       9,478     $         8,715  
      Total assets
                                                                ====== ====== ====================                      ======= ======= ====================
Liabilities and Stockholders' Equity                    
Current liabilities:                                                               
                                                                $          64     $            34  
   Accounts payable
                                                                          604                 668  
   Accrued expenses and other current liabilities
                                                                        2,949               2,963  
   Current portion of deferred revenue
                                                                           82                  72  
   Current portion of operating lease liabilities
                                                                           93      --  
   Current debt, net
                                                                ------------  --------------------                      --------------  --------------------
                                                                        3,792               3,737  
      Total current liabilities
Deferred revenue, less current portion                                     53                  45  
Operating lease liabilities, less current portion                         568                 423  
Long-term debt, net                                                     1,484               1,640  
Other long-term liabilities                                                47                  36  
Stockholders' equity                         3,534               2,834  
                                                                ------------  --------------------                      --------------  --------------------
                                                                                                                                           ServiceNow, Inc.
                                                                                                                            Condensed Consolidated Statements of Cash Flows
                                                                                                                                             (in millions)
                                                                                                                                              (unaudited)
                                                                                                                                                  
                                                                                                          Three Months Ended                                                                              Nine Months Ended
                                                                                        --------------------------------------------------------------------------------------                            --------------------------------------------------------------------------------------
                                                                                 September 30,                         September 30,                         September 30,                         September 30,
                                                                                                        2021                                                     2020                                                     2021                                                     2020
                                                                                        ----------------------------------                        --------------------------------                        ----------------------------------                        --------------------------------
Cash flows from operating activities:                                                                                                              
Net income                                                                              $            63     $          13     $           204     $         102  
Adjustments to reconcile net income to net cash provided by operating activities:                                                                  
                                                                                                    125                84                 346               243  
   Depreciation and amortization
                                                                                                     75                56                 211               157  
   Amortization of deferred commissions
                                                                                                    291               220                 828               625  
   Stock-based compensation
                                                                                                     (5 )                                 (3 )                                  (21 )                                 (6 )
   Deferred income taxes
                                                                                                     (2 )                                (67 )                                  (15 )                                (69 )
   Repayments of convertible senior notes attributable to debt discount
                                                                                         --                41                   3                42  
   Loss on extinguishment of 2022 Notes
                                                                                                     15                 8                  34                23  
   Other
                                                                                                                                                   
   Changes in operating assets and liabilities, net of effect of business combinations:
                                                                                                     (5 )                                 10                 219               210  
      Accounts receivable
                                                                                                   (127 )                                (77 )                                 (344 )                               (221 )
      Deferred commissions
                                                                                                    (21 )                                (10 )                                  (78 )                                (42 )
      Prepaid expenses and other assets
                                                                                                    (36 )                                (36 )                                   39                 2  
      Accounts payable
                                                                                                    (38 )                                 (3 )                                   47                66  
      Deferred revenue
                                                                                                    (15 )                                  5                (126 )                                (31 )
      Accrued expenses and other liabilities
                                                                                        --------------  --------------------                      ------------  --------------------                      --------------  --------------------                      ------------  --------------------
                                                                                                    320               241               1,347             1,101  
         Net cash provided by operating activities
                                                                                        --------------  --------------------                      ------------  --------------------                      --------------  --------------------                      ------------  --------------------
Cash flows from investing activities:                                                                                                              
                                                                                                    (94 )                                (91 )                                 (292 )                               (285 )
   Purchases of property and equipment
                                                                                                    (40 )                                (25 )                                 (778 )                               (108 )
   Business combinations, net of cash acquired
                                                                                                   (630 )                             (1,121 )                               (1,769 )                             (2,229 )
   Purchases of investments
                                                                                                    556               533               1,579             1,299  
   Sales and maturities of investments
                                                                                                     11                 2                  12                (7 )
   Other
                                                                                        --------------  -------------------- -------------------- ------------  -------------------- -------------------- --------------  -------------------- -------------------- ------------  --------------------
                                                                                                   (197 )                               (702 )                               (1,248 )                             (1,330 )
         Net cash used in investing activities
                                                                                        --------------  -------------------- -------------------- ------------  -------------------- -------------------- --------------  -------------------- -------------------- ------------  --------------------
Cash flows from financing activities:                                                                                                              
                                                                                         --             1,482      --             1,482  
   Net proceeds from borrowings on 2030 Notes
                                                                                                     (6 )                             (1,553 )                                  (59 )                             (1,569 )
   Repayments of convertible senior notes attributable to principal
                                                                                         --             1,106      --             1,106  
   Net proceeds from unwind of 2022 Note Hedge
                                                                                                     70                51                 165               142  
   Proceeds from employee stock plans
                                                                                                   (142 )                               (122 )                                 (457 )                               (361 )
   Taxes paid related to net share settlement of equity awards
                                                                                        --------------  --------------------                      ------------  --------------------                      --------------  --------------------                      ------------  --------------------
                                                                                                    (78 )                                964                (351 )                                800  
         Net cash (used in) provided by financing activities
                                                                                        --------------  --------------------                      ------------  --------------------                      --------------  --------------------                      ------------  --------------------
Foreign currency effect on cash, cash equivalents and restricted cash                               (10 )                                  8                 (21 )                                  3  
                                                                                        --------------  --------------------                      ------------  --------------------                      --------------  --------------------                      ------------  --------------------
                                                                                                     35               511                (273 )                                574  
         Net change in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at beginning of period                                 1,371               841               1,679               778  
                                                                                        --------------  --------------------                      ------------  --------------------                      --------------  --------------------                      ------------  --------------------
                                                                                                                                                                                           ServiceNow, Inc.
                                                                                                                                                                                    GAAP to Non-GAAP Reconciliation
                                                                                                                                                                          (in millions, except cRPO, RPO and per share data)
                                                                                                                                                                                              (unaudited)
                                                                                                                                                                                                                                              
                                                                                                             Three Months Ended                                                                                       Nine Months Ended                                             
                                                                                          ----------------------------------------------------------------------------------------                                                                      ----------------------------------------------------------------------------------------------
                                                                                   September 30,                          September 30,                     Growth                      September 30,                             September 30,                        Growth
                                                                                                          2021                                                      2020                                              Rates                                             2021                                                         2020                                                 Rates
                                                                                          ----------------------------------                        ----------------------------------                                                                  ----------------------------------                        ----------------------------------------
Subscription revenues:                                                                                                                                                               
                                                                                          $         1,427     $         1,091              31%           $         4,050     $               3,102              31%
   GAAP subscription revenues
                                                                                                      (11 )                                                          (92 )                                                 
      Effects of foreign currency rate fluctuations
                                                                                          --------------  --------------------                                                                                                                          --------------  --------------------
                                                                                          $         1,416                                  30%           $         3,957                                        28%
   Non-GAAP adjusted subscription revenues(1)
                                                                                          ======= ======= ====================                                                                                                                          ======= ======= ====================
                                                                                                                                                                  
Professional services and other revenues:                                                                                                                                            
                                                                                          $            85     $            61              39%           $           232     $                 167              39%
   GAAP professional services and other revenues
                                                                                                       (1 )                                                           (6 )                                                 
      Effects of foreign currency rate fluctuations
                                                                                          --------------  --------------------                                                                                                                          --------------  --------------------
                                                                                          $            84                                  38%           $           226                                        35%
   Non-GAAP adjusted professional service and other revenues(1)
                                                                                          ======= ======= ====================                                                                                                                          ======= ======= ====================
                                                                                                                                                                  
Total revenues:                                                                                                                                                                      
                                                                                          $         1,512     $         1,152              31%           $         4,282     $               3,269              31%
   GAAP total revenues
                                                                                                      (12 )                                                          (98 )                                                 
      Effects of foreign currency rate fluctuations
                                                                                          --------------  --------------------                                                                                                                          --------------  --------------------
                                                                                          $         1,500                                  30%           $         4,184                                        28%
   Non-GAAP adjusted total revenues(1)
                                                                                          ======= ======= ====================                                                                                                                          ======= ======= ====================
                                                                                                                                                                  
cRPO (in billions):                                                                                                                                                                  
                                                                                          $           5.0     $           3.8              32%           $           5.0     $                 3.8              32%
   GAAP cRPO
                                                                                           --                              --                                
      Effects of foreign currency rate fluctuations
                                                                                          --------------  --------------------                                                                                                                          --------------  --------------------
                                                                                          $           5.0                                  32%           $           5.0                                        32%
   Non-GAAP adjusted cRPO(2)
                                                                                          ======= ======= ====================                                                                                                                          ======= ======= ====================
                                                                                                                                                                  
RPO (in billions):                                                                                                                                                                   
                                                                                          $           9.7     $           7.3              34%           $           9.7     $                 7.3              34%
   GAAP RPO
                                                                                           --                              --                                
      Effects of foreign currency rate fluctuations
                                                                                          --------------  --------------------                                                                                                                          --------------  --------------------
                                                                                          $           9.7                                  34%           $           9.7                                        34%
   Non-GAAP adjusted RPO(2)
                                                                                          ======= ======= ====================                                                                                                                          ======= ======= ====================
                                                                                                                                                                  
Subscription billings:                                                                                                                                                               
                                                                                          $         1,427     $         1,091              31%           $         4,050     $               3,102              31%
   GAAP subscription revenues
                                                                                                      (47 )                                  (10 )                                       24                        53      
      Change in subscription deferred revenue, unbilled receivables and customer deposits
                                                                                          --------------  --------------------                      --------------  --------------------                                                                --------------  --------------------                      --------------------  --------------------
                                                                                                    1,380               1,081              28%                     4,074                     3,155              29%
   Non-GAAP subscription billings
                                                                                                      (10 )                                                          (93 )                                                 
      Effects of foreign currency rate fluctuations
                                                                                                       (5 )                                                          (25 )                                                 
      Effects of fluctuations in billings duration
                                                                                          --------------  --------------------                                                                                                                          --------------  --------------------
                                                                                          $         1,365                                  26%           $         3,956                                        25%
   Non-GAAP adjusted subscription billings(3)
                                                                                          ======= ======= ====================                                                                                                                          ======= ======= ====================
                                                                                                                                                                  
Professional services and other billings:                                                                                                                                            
                                                                                          $            85     $            61              39%           $           232     $                 167              39%
   GAAP professional services and other revenues
                                                                                                       (1 )                                   (2 )                          $            11     $      --      
      Change in professional services and other deferred revenue
                                                                                          --------------  --------------------                      --------------  --------------------                                                                ------- ------- --------------------                      ------ -------------- --------------------
                                                                                                       84                  59              42%                       243                       167              46%
   Non-GAAP professional services and other billings
                                                                                                       (1 )                                                           (6 )                                                 
      Effects of foreign currency rate fluctuations
                                                                                          --------------  --------------------                                                                                                                          --------------  --------------------
                                                                                          $            83                                  41%           $           237                                        42%
   Non-GAAP adjusted professional services and other billings(3)
                                                                                          ======= ======= ====================                                                                                                                          ======= ======= ====================
                                                                                                                                                                  
Total billings:                                                                                                                                                                      
                                                                                          $         1,512     $         1,152              31%           $         4,282     $               3,269              31%
   GAAP total revenues
                                                                                                      (47 )                                  (12 )                                       35                        53      
     Change in total deferred revenue, unbilled receivables and customer deposits
                                                                                          --------------  --------------------                      --------------  --------------------                                                                --------------  --------------------                      --------------------  --------------------
                                                                                                    1,465               1,140              29%                     4,317                     3,322              30%
   Non-GAAP total billings
                                                                                                      (10 )                                                          (99 )                                                 
     Effects of foreign currency rate fluctuations
                                                                                                       (5 )                                                          (25 )                                                 
     Effects of fluctuations in billings duration
                                                                                          --------------  --------------------                                                                                                                          --------------  --------------------
                                                                                          $         1,450                                  27%           $         4,193                                        26%
   Non-GAAP adjusted total billings(3)
                                                                                          ======= ======= ====================                                                                                                                          ======= ======= ====================
                                                                                                                                                                  
Cost of revenues:                                                                                                                                                                    
                                                                                          $           264     $           189         $           740     $                 521      
   GAAP subscription cost of revenues
                                                                                                      (33 )                                  (26 )                                      (95 )                                        (72 )                       
     Stock-based compensation
                                                                                                      (17 )                                   (9 )                                      (43 )                                        (28 )                       
     Amortization of purchased intangibles
                                                                                          --------------  --------------------                      --------------  --------------------                                                                --------------  --------------------                      --------------------  --------------------
                                                                                          $           214     $           154         $           602     $                 421      
   Non-GAAP subscription cost of revenues
                                                                                          ======= ======= ====================                      ======= ======= ====================                                                                ======= ======= ====================                      ====== ============== ====================
                                                                                                                                                                                     
    
                                                                                          $            86     $            63         $           239     $                 187      
   GAAP professional services and other cost of revenues
                                                                                                      (15 )                                  (13 )                                      (43 )                                        (38 )                       
     Stock-based compensation
                                                                                          --------------  --------------------                      --------------  --------------------                                                                --------------  --------------------                      --------------------  --------------------
                                                                                          $            71     $            50         $           196     $                 149      
   Non-GAAP professional services and other cost of revenues
                                                                                          ======= ======= ====================                      ======= ======= ====================                                                                ======= ======= ====================                      ====== ============== ====================
                                                                                                                                                                  
Gross profit:                                                                                                                                                                        
                                                                                          $         1,163     $           902         $         3,310     $               2,581      
   GAAP subscription gross profit
                                                                                                       33                  26                      95                        72      
      Stock-based compensation
                                                                                                       17                   9                      43                        28      
      Amortization of purchased intangibles
                                                                                          --------------  --------------------                      --------------  --------------------                                                                --------------  --------------------                      --------------------  --------------------
                                                                                          $         1,213     $           937         $         3,448     $               2,681      
   Non-GAAP subscription gross profit
                                                                                          ======= ======= ====================                      ======= ======= ====================                                                                ======= ======= ====================                      ====== ============== ====================
                                                                                                                                                                                     
    
                                                                                          $            (1 )                      $            (2 )                          $            (7 )                      $                 (20 )                       
   GAAP professional services and other gross loss
                                                                                                       15                  13                      43                        38      
      Stock-based compensation
                                                                                          --------------  --------------------                      --------------  --------------------                                                                --------------  --------------------                      --------------------  --------------------
                                                                                          $            14     $            11         $            36     $                  18      
   Non-GAAP professional services and other gross profit
                                                                                          ======= ======= ====================                      ======= ======= ====================                                                                ======= ======= ====================                      ====== ============== ====================
                                                                                                                                                                                     
    
                                                                                          $         1,162     $           900         $         3,303     $               2,561      
   GAAP gross profit
                                                                                                       48                  39                     138                       110      
      Stock-based compensation
                                                                                                       17                   9                      43                        28      
      Amortization of purchased intangibles
                                                                                          --------------  --------------------                      --------------  --------------------                                                                --------------  --------------------                      --------------------  --------------------
                                                                                          $         1,227     $           948         $         3,484     $               2,699      
   Non-GAAP gross profit
                                                                                          ======= ======= ====================                      ======= ======= ====================                                                                ======= ======= ====================                      ====== ============== ====================
                                                                                                                                                                  
Gross margin:                                                                                                                                                                        
                                                                                                       81 %                                   83 %                                       82 %                                         83 %                       
   GAAP subscription gross margin
                                                                                                        2 %                                    2 %                                        2 %                                          2 %                       
      Stock-based compensation as % of subscription revenues
                                                                                                        1 %                                    1 %                                        1 %                                          1 %                       
      Amortization of purchased intangibles as % of subscription revenues
                                                                                          --------------  --------------------                      --------------  --------------------                                                                --------------  --------------------                      --------------------  --------------------
                                                                                                       85 %                                   86 %                                       85 %                                         86 %                       
   Non-GAAP subscription gross margin
                                                                                          ==============  ====================                      ==============  ====================                                                                ==============  ====================                      ====================  ====================
                                                                                                                                                                                     
    
                                                                                                       (1 %)                                  (3 %)                                      (3 %)                                       (12 %)                      
   GAAP professional services and other gross margin
                                                                                                       18 %                                   21 %                                       19 %                                         23 %                       
      Stock-based compensation as % of professional services and other revenues
                                                                                          --------------  --------------------                      --------------  --------------------                                                                --------------  --------------------                      --------------------  --------------------
                                                                                                       17 %                                   19 %                                       16 %                                         11 %                       
   Non-GAAP professional services and other gross margin
                                                                                          ==============  ====================                      ==============  ====================                                                                ==============  ====================                      ====================  ====================
                                                                                                                                                                                                                           
    
                                                                                                       77 %                                   78 %                                       77 %                                         78 %                       
   GAAP gross margin
                                                                                                        3 %                                    3 %                                        3 %                                          3 %                       
      Stock-based compensation as % of total revenues
                                                                                                        1 %                                    1 %                                        1 %                                          1 %                       
      Amortization of purchased intangibles as % of total revenues
                                                                                          --------------  --------------------                      --------------  --------------------                                                                --------------  --------------------                      --------------------  --------------------
Non-GAAP gross margin                                                                                  81 %                                   82 %                                       81 %                                         83 %                       
                                                                                          ==============  ====================                      ==============  ====================                                                                ==============  ====================                      ====================  ====================
                                                                                                                                                                  
Operating expenses:                                                                                                                                                                  
                                                                                          $           579     $           454         $         1,660     $               1,321      
   GAAP sales and marketing expenses
                                                                                                     (101 )                                  (79 )                                     (293 )                                       (228 )                       
      Stock-based compensation
                                                                                           --      --                      (1 )                                         (1 )                       
      Amortization of purchased intangibles
                                                                                          --------------  --------------------                      --------------  --------------------                                                                --------------  --------------------                      --------------------  --------------------
                                                                                          $           478     $           375         $         1,366     $               1,092      
   Non-GAAP sales and marketing expenses
                                                                                          ======= ======= ====================                      ======= ======= ====================                                                                ======= ======= ====================                      ====== ============== ====================
                                                                                                                                                                                     
    
                                                                                          $           358     $           268         $         1,005     $                 740      
   GAAP research and development expenses
                                                                                                     (102 )                                  (74 )                                     (288 )                                       (203 )                       
      Stock-based compensation
                                                                                                  $            (4 )                      $       --         $            (5 )                      $       --      
      Business combination and other related costs
                                                                                                  ------- ------- --------------------                      ------- -------------- --------------------                                                                ------- ------- --------------------                      ------- -------------- --------------------
                                                                                                  $           252     $                  193         $           712     $                  535      
   Non-GAAP research and development expenses
                                                                                                  ======= ======= ====================                      ======= ============== ====================                                                                ======= ======= ====================                      ======= ============== ====================
                                                                                                                                                                                                     
    
                                                                                                  $           151     $                  109         $           416     $                  319      
   GAAP general and administrative expenses
                                                                                                              (40 )                                         (28 )                                     (110 )                                         (84 )                       
      Stock-based compensation
                                                                                                               (2 )                              --                      (8 )                                          (5 )                       
      Amortization of purchased intangibles
                                                                                                               (2 )                              --                      (7 )                                          (4 )                       
      Business combination and other related costs
                                                                                                  --------------  --------------------                      ---------------------  --------------------                                                                --------------  --------------------                      ---------------------  --------------------
                                                                                                  $           107     $                   81         $           291     $                  226      
   Non-GAAP general and administrative expenses
                                                                                                  ======= ======= ====================                      ======= ============== ====================                                                                ======= ======= ====================                      ======= ============== ====================
                                                                                                                                                                                                     
    
                                                                                                  $         1,088     $                  831         $         3,081     $                2,380      
   GAAP total operating expenses
                                                                                                             (243 )                                        (181 )                                     (691 )                                        (515 )                       
      Stock-based compensation
                                                                                                               (2 )                                          (1 )                                       (9 )                                          (7 )                       
      Amortization of purchased intangibles
                                                                                                               (7 )                              --                     (13 )                                          (4 )                       
      Business combination and other related costs
                                                                                                  --------------  --------------------                      ---------------------  --------------------                                                                --------------  --------------------                      ---------------------  --------------------
                                                                                                  $           836     $                  649         $         2,368     $                1,854      
   Non-GAAP total operating expenses
                                                                                                  ======= ======= ====================                      ======= ============== ====================                                                                ======= ======= ====================                      ======= ============== ====================
                                                                                                                                                                                  
Income from operations:                                                                                                                                                                              
                                                                                                  $            74     $                   69         $           222     $                  181      
   GAAP income from operations
                                                                                                              291                        220                     829                        625      
      Stock-based compensation
                                                                                                               19                         10                      52                         35      
      Amortization of purchased intangibles
                                                                                                                7             --                      13                          4      
      Business combination and other related costs
                                                                                                  --------------  --------------------                      ---------------------  --------------------                                                                --------------  --------------------                      ---------------------  --------------------
                                                                                                  $           391     $                  299         $         1,116     $                  845      
   Non-GAAP income from operations
                                                                                                  ======= ======= ====================                      ======= ============== ====================                                                                ======= ======= ====================                      ======= ============== ====================
                                                                                                                                                                                  
Operating margin:                                                                                                                                                                                    
                                                                                                                5 %                                           6 %                                        5 %                                           6 %                       
   GAAP operating margin
                                                                                                               19 %                                          19 %                                       19 %                                          19 %                       
     Stock-based compensation as % of total revenues
                                                                                                                1 %                                           1 %                                        1 %                                           1 %                       
     Amortization of purchased intangibles as % of total revenues
                                                                                                                1 %                              -- %                                        1 %                              -- %                       
     Business combination and other related costs as % of total revenues
                                                                                                  --------------  --------------------                      ---------------------  --------------------                                                                --------------  --------------------                      ---------------------  --------------------
                                                                                                               26 %                                          26 %                                       26 %                                          26 %                       
   Non-GAAP operating margin
                                                                                                  ==============  ====================                      =====================  ====================                                                                ==============  ====================                      =====================  ====================
                                                                                                                                                                                  
Net income:                                                                                                                                                                                          
                                                                                                  $            63     $                   13         $           204     $                  102      
   GAAP net income
                                                                                                              291                        220                     829                        625      
      Stock-based compensation
                                                                                                               19                         10                      52                         35      
      Amortization of purchased intangibles
                                                                                                                7             --                      13                          4      
      Business combination and other related costs
                                                                                                                2                          5                       6                         22      
      Amortization of debt discount and issuance costs
                                                                                                   --                         41                       3                         42      
      Other
                                                                                                              (68 )                                         (48 )                                     (200 )                                        (139 )                       
      Income tax expense effects related to the above adjustments
                                                                                                  --------------  --------------------                      ---------------------  --------------------                                                                --------------  --------------------                      ---------------------  --------------------
                                                                                                  $           314     $                  241         $           907     $                  691      
   Non-GAAP net income
                                                                                                  ======= ======= ====================                      ======= ============== ====================                                                                ======= ======= ====================                      ======= ============== ====================
                                                                                                                                                                                  
Net income per share - basic and diluted:                                                                                                                                                            
                                                                                                  $          0.32     $                 0.07         $          1.03     $                 0.53      
   GAAP net income per share - basic
                                                                                                  ======= ======= ====================                      ======= ============== ====================                                                                ======= ======= ====================                      ======= ============== ====================
                                                                                                  $          0.31     $                 0.06         $          1.00     $                 0.50      
   GAAP net income per share - diluted
                                                                                                  ======= ======= ====================                      ======= ============== ====================                                                                ======= ======= ====================                      ======= ============== ====================
                                                                                                  $          1.58     $                 1.24         $          4.58     $                 3.57      
   Non-GAAP net income per share - basic
                                                                                                  ======= ======= ====================                      ======= ============== ====================                                                                ======= ======= ====================                      ======= ============== ====================
                                                                                                  $          1.55     $                 1.21         $          4.49     $                 3.46      
   Non-GAAP net income per share - diluted
                                                                                                  ======= ======= ====================                      ======= ============== ====================                                                                ======= ======= ====================                      ======= ============== ====================
                                                                                                                                                                                                     
    
                                                                                                              199                        193                     198                        193      
   GAAP weighted-average shares used to compute net income per share - basic
                                                                                                  ==============  ====================                      =====================  ====================                                                                ==============  ====================                      =====================  ====================
                                                                                                                                                                                                     
    
                                                                                                              203                        202                     203                        203      
   GAAP weighted-average shares used to compute net income per share - diluted
                                                                                                   --                         (3 )                                       (1 )                                          (3 )                       
      Effects of in-the-money portion of convertible senior notes(4)
                                                                                                  --------------  --------------------                      ---------------------  --------------------                                                                --------------  --------------------                      ---------------------  --------------------
                                                                                                              203                        199                     202                        200      
   Non-GAAP weighted-average shares used to compute net income per share - diluted
                                                                                                  ==============  ====================                      =====================  ====================                                                                ==============  ====================                      =====================  ====================
                                                                                                                                                                                  
Free cash flow:                                                                                                                                                                                      
                                                                                                  $           320     $                  241         $         1,347     $                1,101      
   GAAP net cash provided by operating activities
                                                                                                              (94 )                                         (91 )                                     (292 )                                        (285 )                       
     Purchases of property and equipment
                                                                                                                2                         66                      15                         68      
     Repayments of convertible senior notes attributable to debt discount
                                                                                                   --             --                      53             --      
     Business combination and other related costs
                                                                                                  --------------  --------------------                      ---------------------  --------------------                                                                --------------  --------------------                      ---------------------  --------------------
                                                                                                  $           228     $                  216         $         1,123     $                  884      
   Non-GAAP free cash flow
                                                                                                  ======= ======= ====================                      ======= ============== ====================                                                                ======= ======= ====================                      ======= ============== ====================
                                                                                                                                                                                  
Free cash flow margin:                                                                                                                                                                               
                                                                                                               21 %                                          21 %                                       31 %                                          34 %                       
   GAAP net cash provided by operating activities as % of total revenues
                                                                                                               (6 %)                                         (8 %)                                      (7 %)                                         (9 %)                      
      Purchases of property and equipment as % of total revenues
                                                                                                   -- %                                           6 %                           -- %                                           2 %                       
      Repayments of convertible senior notes attributable to debt discount as % of total revenues
                                                                                                   -- %                              -- %                                        1 %                              -- %                       
      Business combination and other related costs as % of total revenues
                                                                                                  --------------  --------------------                      ---------------------  --------------------                                                                --------------  --------------------                      ---------------------  --------------------
(1) (1) Adjusted revenues and the corresponding growth rates are derived by applying the average exchange rates in effect during the comparison period rather than the actual average exchange rates in effect during the current period.
(2) (2) Adjusted cRPO and adjusted RPO and the corresponding growth rates are derived by applying the end of period exchange rates in effect during the comparison period rather than the actual end of period exchange rates in effect during the current period.
(3) (3) Adjusted billings and the corresponding growth rates are derived by applying the average exchange rates in effect during the comparison period rather than the actual average exchange rates in effect during the current period, and by replacing the portion of multi-year billings in excess of twelve months during the current period with the portion of multi-year billings in excess of twelve months during the comparison period
(4) (4) Effects of dilutive time-based stock awards, in-the-money portion of convertible senior notes and warrants are included in the GAAP weighted-average diluted shares in periods where we have GAAP net income. We exclude the in-the-money portion of convertible senior notes for non-GAAP weighted-average diluted shares as they are covered by our note hedges. We include stock awards with performance conditions not yet satisfied for non-GAAP weighted average diluted shares at forecasted attainment levels to the extent we believe it is probable that the performance condition will be met.

ServiceNow, Inc. Reconciliation of Non-GAAP Financial Guidance

The financial guidance provided below is an estimate based on information available as of September 30, 2021. 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. 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, 2020 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 three months ended September 30, 2021. The company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

                                                                                            Three Months Ended                           
                                                                                       ---------------------------------------------------------------
                                                                        December 31, 2021       December 31, 2020        Growth Rates
                                                                                       -----------------------                      --------------------
                                                                                
GAAP subscription revenues(1)                                                           $1,515 - $1,520 million     $1,184 million               28%
                                                                                                   
   Note: Includes negative impact of foreign currency of $1 million
                                                                                
GAAP subscription revenues(1)                                                           $1,515 - $1,520 million     $1,184 million               28%
                                                                                
                                                                                             $790 million            $643 million        
   Change in subscription deferred revenue, unbilled receivables and customer deposits
                                                                                
                                                                                       -----------------------                      --------------------
Non-GAAP subscription billings(1)                                                       $2,305 - $2,310 million     $1,828 million               26%
                                                                                                   
   Note: Includes negative impact of foreign currency of $2 million
          Includes negative impact of billings duration of $7 million
                                                                                
cRPO Year-over-year growth                                                                        27%                 
                                                                                                   
   Note: Includes negative impact of foreign currency of 150 bps
                                                                                
GAAP operating margin                                                                             2%                  
                                                                                
                                                                                                  18%                 
   Stock-based compensation expense as % of total revenues
                                                                                
                                                                                                  1%                  
   Amortization of purchased intangibles as % of total revenues
                                                                                
                                                                                                  0%                  
   Business combination and other related costs as % of total revenues
                                                                                
                                                                                       -----------------------
Non-GAAP operating margin                                                                         22%                 
                                                                                       =======================
                                                                                
GAAP weighted-average shares used to compute net income per share - diluted                   203 million             
                                                                                
                                                                                              (1) million             
   Effects of in-the-money portion of convertible senior notes(2)
                                                                                
                                                                                       -----------------------
Non-GAAP weighted-average shares used to compute net income per share - diluted               203 million             
                                                                                       =======================
                                                                                                    Twelve Months Ended                          
                                                                                               ---------------------------------------------------------------
                                                                                December 31, 2021       December 31, 2020        Growth Rates
                                                                                               -----------------------                      --------------------
                                                                                        
GAAP subscription revenues(1)                                                                   $5,565 - $5,570 million     $4,286 million               30%
                                                                                                           
   Note: Includes foreign currency benefit of $91 million
                                                                                        
GAAP subscription revenues(1)                                                                   $5,565 - $5,570 million     $4,286 million               30%
                                                                                        
                                                                                                     $814 million            $696 million        
   Change in subscription deferred revenue, unbilled receivables and customer deposits
                                                                                        
                                                                                               -----------------------                      --------------------
Non-GAAP subscription billings(1)                                                               $6,379 - $6,384 million     $4,982 million               28%
                                                                                        
                                                                                                           
   Note: Includes foreign currency benefit of $90 million
          Includes positive impact of billings duration of $18 million
                                                                                        
GAAP subscription gross margin                                                                            82%                 
                                                                                        
                                                                                                          2%                  
   Stock-based compensation expense as % of subscription revenues
                                                                                        
                                                                                                          1%                  
   Amortization of purchased intangibles as % of subscription revenues
                                                                                        
                                                                                               -----------------------
Non-GAAP subscription margin                                                                              85%                 
                                                                                               =======================
                                                                                        
GAAP operating margin                                                                                     4%                  
                                                                                        
                                                                                                          19%                 
   Stock-based compensation expense as % of total revenues
                                                                                        
                                                                                                          1%                  
   Amortization of purchased intangibles as % of total revenues
                                                                                        
                                                                                                          0%                  
   Business combination and other related costs as % of total revenues
                                                                                        
                                                                                               -----------------------
Non-GAAP operating margin                                                                                25.0%                
                                                                                               =======================
                                                                                        
GAAP net cash provided by operating activities as % of total revenues                                     37%                 
                                                                                        
                                                                                                         (7%)                 
   Purchases of property and equipment as % of total revenues
                                                                                        
                                                                                                          0%                  
   Repayments of convertible senior notes attributable to debt discount as % of total revenues
                                                                                        
                                                                                                          1%                  
   Business combination and other related costs as % of total revenues
                                                                                        
                                                                                               -----------------------
Non-GAAP free cash flow margin                                                                           31.5%                
                                                                                               =======================
                                                                                        
GAAP weighted-average shares used to compute net income per share - diluted                           202 million             
                                                                                        
                                                                                                      (1) million             
   Effects of in-the-money portion of convertible senior notes(2)
                                                                                        
                                                                                               -----------------------
(1) Guidance for GAAP subscription revenues and non-GAAP subscription billings is based on September 2021 foreign exchange rates for entities reporting in currencies other than U.S. Dollars.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211027006016/en/

SOURCE: ServiceNow

Media Contact: 
Sara Day
650.336.3123
press@servicenow.com

Investor Contact: 
Darren Yip
925.388.7205
ir@servicenow.com
comtex tracking

COMTEX_395904282/1006/2021-10-27T16:10:02

Earnings Calendar and Events Data provided by |Terms of Use| © 2022 Wall Street Horizon, Inc.

Market data accompanied by is delayed by at least 15 minutes for NASDAQ, NYSE MKT, NYSE, and options. Duration of the delay for other exchanges varies.
Market data and information provided by Morningstar.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses.
Please read Characteristics and Risks of Standard Options before investing in options.

Information and news provided by ,, , Computrade Systems, Inc., ,, and

Copyright © 2022. All rights reserved.