(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) |
Not Applicable | ||
(Former Name or Former Address, if Changed Since Last Report) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
(d) | Exhibits. | |||||||
104 | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document |
SERVICENOW, INC. | ||||||||||||||
By: | /s/ Russell S. Elmer | |||||||||||||
Russell S. Elmer General Counsel | ||||||||||||||
Date: January 27, 2021 |
Fourth Quarter 2020 GAAP Results | Fourth Quarter 2020 Non-GAAP Results(1) | ||||||||||||||||||||||
Amount ($ millions) | Year/Year Growth (%) | Amount ($ millions) | Year/Year Growth (%) | Adjusted Amount ($ millions)(2) | Adjusted Year/Year Growth (%) | ||||||||||||||||||
Subscription revenues | $1,184 | 32 | % | $1,161 | 29 | % | |||||||||||||||||
Professional services and other revenues | $66 | 26 | % | $65 | 23 | % | |||||||||||||||||
Total revenues | $1,250 | 31 | % | $1,226 | 29 | % | |||||||||||||||||
Subscription billings | $1,828 | 41 | % | $1,796 | 38 | % | |||||||||||||||||
Professional services and other billings | $80 | 31 | % | $78 | 29 | % | |||||||||||||||||
Total billings | $1,907 | 40 | % | $1,874 | 38 | % | |||||||||||||||||
Amount ($ millions) | Margin (%) | Amount ($ millions) | Margin (%) | ||||||||||||||||||||
Subscription gross profit | $974 | 82 | % | $1,009 | 85 | % | |||||||||||||||||
Professional services and other gross profit (loss) | ($3) | (5 | %) | $11 | 16 | % | |||||||||||||||||
Total gross profit | $971 | 78 | % | $1,019 | 82 | % | |||||||||||||||||
Income from operations | $18 | 1 | % | $276 | 22 | % | |||||||||||||||||
Net cash provided by operating activities | $686 | 55 | % | ||||||||||||||||||||
Free cash flow | $565 | 45 | % | ||||||||||||||||||||
Amount ($ millions) | Earnings per Basic/Diluted Share ($) | Amount ($ millions) | Earnings per Basic/Diluted Share ($) | ||||||||||||||||||||
Net income | $17 | $0.09/ $0.08 | $235 | $1.20/ $1.17 |
Full-Year 2020 GAAP Results | Full-Year 2020 Non-GAAP Results(1) | ||||||||||||||||||||||
Amount ($ millions) | Year/Year Growth (%) | Amount ($ millions) | Year/Year Growth (%) | Adjusted Amount ($ millions)(2) | Adjusted Year/Year Growth (%) | ||||||||||||||||||
Subscription revenues | $4,286 | 32 | % | $4,272 | 31 | % | |||||||||||||||||
Professional services and other revenues | $234 | 14 | % | $233 | 13 | % | |||||||||||||||||
Total revenues | $4,519 | 31 | % | $4,505 | 30 | % | |||||||||||||||||
Subscription billings | $4,982 | 32 | % | $4,963 | 31 | % | |||||||||||||||||
Professional services and other billings | $247 | 15 | % | $246 | 15 | % | |||||||||||||||||
Total billings | $5,229 | 31 | % | $5,209 | 30 | % | |||||||||||||||||
Amount ($ millions) | Margin (%) | Amount ($ millions) | Margin (%) | ||||||||||||||||||||
Subscription gross profit | $3,555 | 83 | % | $3,689 | 86 | % | |||||||||||||||||
Professional services and other gross profit (loss) | ($23) | (10 | %) | $29 | 12 | % | |||||||||||||||||
Total gross profit | $3,532 | 78 | % | $3,718 | 82 | % | |||||||||||||||||
Income from operations | $199 | 5 | % | $1,121 | 25 | % | |||||||||||||||||
Net cash provided by operating activities | $1,787 | 39 | % | ||||||||||||||||||||
Free cash flow | $1,449 | 32 | % | ||||||||||||||||||||
Amount ($ millions) | Earnings per Basic/Diluted Share ($) | Amount ($ millions) | Earnings per Basic/Diluted Share ($) | ||||||||||||||||||||
Net income | $119 | $0.61/ $0.59 | $926 | $4.79/ $4.63 |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Subscription | $ | 1,184,181 | $ | 899,194 | $ | 4,285,797 | $ | 3,255,079 | |||||||||||||||
Professional services and other | 66,149 | 52,580 | 233,687 | 205,358 | |||||||||||||||||||
Total revenues | 1,250,330 | 951,774 | 4,519,484 | 3,460,437 | |||||||||||||||||||
Cost of revenues (1): | |||||||||||||||||||||||
Subscription | 209,900 | 148,244 | 730,835 | 549,642 | |||||||||||||||||||
Professional services and other | 69,204 | 63,209 | 256,278 | 247,003 | |||||||||||||||||||
Total cost of revenues | 279,104 | 211,453 | 987,113 | 796,645 | |||||||||||||||||||
Gross profit | 971,226 | 740,321 | 3,532,371 | 2,663,792 | |||||||||||||||||||
Operating expenses (1): | |||||||||||||||||||||||
Sales and marketing | 533,853 | 416,005 | 1,855,016 | 1,534,284 | |||||||||||||||||||
Research and development | 284,297 | 202,328 | 1,024,327 | 748,369 | |||||||||||||||||||
General and administrative | 135,146 | 93,476 | 454,165 | 339,016 | |||||||||||||||||||
Total operating expenses | 953,296 | 711,809 | 3,333,508 | 2,621,669 | |||||||||||||||||||
Income from operations | 17,930 | 28,512 | 198,863 | 42,123 | |||||||||||||||||||
Interest expense | (7,708) | (8,475) | (32,746) | (33,283) | |||||||||||||||||||
Other income (expense), net | 3,138 | 14,149 | (16,932) | 58,345 | |||||||||||||||||||
Income before income taxes | 13,360 | 34,186 | 149,185 | 67,185 | |||||||||||||||||||
Provision for (benefit from) income taxes | (3,288) | (564,538) | 30,682 | (559,513) | |||||||||||||||||||
Net income | $ | 16,648 | $ | 598,724 | $ | 118,503 | $ | 626,698 | |||||||||||||||
Net income per share - basic | $ | 0.09 | $ | 3.17 | $ | 0.61 | $ | 3.36 | |||||||||||||||
Net income per share - diluted | $ | 0.08 | $ | 3.03 | $ | 0.59 | $ | 3.18 | |||||||||||||||
Weighted-average shares used to compute net income per share - basic | 195,461 | 189,042 | 193,096 | 186,466 | |||||||||||||||||||
Weighted-average shares used to compute net income per share - diluted | 202,455 | 197,843 | 202,478 | 197,223 |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||
Subscription | $ | 26,172 | $ | 18,709 | $ | 98,258 | $ | 72,728 | |||||||||||||||
Professional services and other | 13,696 | 11,374 | 51,553 | 43,123 | |||||||||||||||||||
Sales and marketing | 92,330 | 68,337 | 320,328 | 268,408 | |||||||||||||||||||
Research and development | 78,965 | 50,562 | 282,244 | 194,821 | |||||||||||||||||||
General and administrative | 34,236 | 21,069 | 118,070 | 83,115 |
December 31, 2020 | December 31, 2019 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 1,676,794 | $ | 775,778 | |||||||
Short-term investments | 1,415,242 | 915,317 | |||||||||
Accounts receivable, net | 1,009,415 | 835,279 | |||||||||
Current portion of deferred commissions | 228,924 | 175,039 | |||||||||
Prepaid expenses and other current assets | 191,467 | 125,488 | |||||||||
Total current assets | 4,521,842 | 2,826,901 | |||||||||
Deferred commissions, less current portion | 444,068 | 333,448 | |||||||||
Long-term investments | 1,468,006 | 1,013,332 | |||||||||
Property and equipment, net | 659,641 | 468,085 | |||||||||
Operating lease right-of-use assets | 454,218 | 402,428 | |||||||||
Intangible assets, net | 153,367 | 143,850 | |||||||||
Goodwill | 240,764 | 156,756 | |||||||||
Deferred tax assets | 673,111 | 599,633 | |||||||||
Other assets | 100,040 | 77,997 | |||||||||
Total assets | $ | 8,715,057 | $ | 6,022,430 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 34,236 | $ | 52,960 | |||||||
Accrued expenses and other current liabilities | 668,093 | 461,403 | |||||||||
Current portion of deferred revenue | 2,962,579 | 2,185,754 | |||||||||
Current portion of operating lease liabilities | 72,236 | 52,668 | |||||||||
Total current liabilities | 3,737,144 | 2,752,785 | |||||||||
Deferred revenue, less current portion | 45,346 | 40,038 | |||||||||
Operating lease liabilities, less current portion | 422,779 | 383,221 | |||||||||
Long-term debt | 1,640,153 | 694,981 | |||||||||
Other long-term liabilities | 35,154 | 23,464 | |||||||||
Stockholders’ equity | 2,834,481 | 2,127,941 | |||||||||
Total liabilities and stockholders’ equity | $ | 8,715,057 | $ | 6,022,430 |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 16,648 | $ | 598,724 | $ | 118,503 | $ | 626,698 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | 93,033 | 72,331 | 336,381 | 252,114 | |||||||||||||||||||
Amortization of deferred commissions | 60,440 | 45,788 | 217,631 | 168,014 | |||||||||||||||||||
Amortization of debt discount and issuance costs | 2,492 | 8,475 | 24,478 | 33,283 | |||||||||||||||||||
Stock-based compensation | 245,399 | 170,051 | 870,453 | 662,195 | |||||||||||||||||||
Deferred income taxes | (18,041) | (572,923) | (24,481) | (575,765) | |||||||||||||||||||
Repayments of convertible senior notes attributable to debt discount | (13,449) | — | (81,958) | — | |||||||||||||||||||
Loss on extinguishment of 2022 Notes | 4,954 | — | 46,611 | — | |||||||||||||||||||
Other | (3,134) | (4,300) | (2,493) | (8,921) | |||||||||||||||||||
Changes in operating assets and liabilities, net of effect of business combinations: | |||||||||||||||||||||||
Accounts receivable | (361,706) | (288,166) | (151,431) | (259,835) | |||||||||||||||||||
Deferred commissions | (143,863) | (97,296) | (365,264) | (255,605) | |||||||||||||||||||
Prepaid expenses and other assets | (12,507) | (4,338) | (54,203) | (29,907) | |||||||||||||||||||
Accounts payable | (35,375) | (8,733) | (33,583) | 21,355 | |||||||||||||||||||
Deferred revenue | 644,453 | 401,794 | 710,998 | 537,249 | |||||||||||||||||||
Accrued expenses and other liabilities | 206,181 | 99,804 | 174,957 | 65,097 | |||||||||||||||||||
Net cash provided by operating activities | 685,525 | 421,211 | 1,786,599 | 1,235,972 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchases of property and equipment | (134,000) | (79,003) | (419,327) | (264,892) | |||||||||||||||||||
Business combinations, net of cash acquired | 411 | (7,414) | (107,236) | (7,414) | |||||||||||||||||||
Purchases of intangibles | (6,690) | (35,329) | (13,190) | (72,689) | |||||||||||||||||||
Purchases of investments | (704,791) | (339,976) | (2,933,876) | (1,595,667) | |||||||||||||||||||
Sales and maturities of investments | 666,460 | 261,297 | 1,965,429 | 1,192,750 | |||||||||||||||||||
Realized gains on derivatives not designated as hedging instruments, net | 2,091 | 1,693 | 1,328 | 23,435 | |||||||||||||||||||
Net cash used in investing activities | (176,519) | (198,732) | (1,506,872) | (724,477) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Net proceeds from borrowings on 2030 Notes | — | — | 1,481,633 | — | |||||||||||||||||||
Repayments of convertible senior notes attributable to principal | (58,824) | (9) | (1,627,690) | (9) | |||||||||||||||||||
Net proceeds from unwind of 2022 Note Hedge | — | — | 1,105,542 | — | |||||||||||||||||||
Proceeds from employee stock plans | 3,266 | 2,641 | 145,766 | 107,868 | |||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (147,934) | (78,913) | (508,604) | (409,715) | |||||||||||||||||||
Net cash provided by (used in) financing activities | (203,492) | (76,281) | 596,647 | (301,856) | |||||||||||||||||||
Foreign currency effect on cash, cash equivalents and restricted cash | 22,106 | 6,253 | 25,065 | (186) | |||||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | 327,620 | 152,451 | 901,439 | 209,453 | |||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 1,351,810 | 625,540 | 777,991 | 568,538 | |||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 1,679,430 | $ | 777,991 | $ | 1,679,430 | $ | 777,991 |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | Growth Rates | December 31, 2020 | December 31, 2019 | Growth Rates | ||||||||||||||||||||||||||||||
Subscription revenues: | |||||||||||||||||||||||||||||||||||
GAAP subscription revenues | $ | 1,184,181 | $ | 899,194 | 32% | $ | 4,285,797 | $ | 3,255,079 | 32% | |||||||||||||||||||||||||
Effects of foreign currency rate fluctuations | (22,878) | (13,786) | |||||||||||||||||||||||||||||||||
Non-GAAP adjusted subscription revenues(1) | $ | 1,161,303 | 29% | $ | 4,272,011 | 31% | |||||||||||||||||||||||||||||
Subscription billings: | |||||||||||||||||||||||||||||||||||
GAAP subscription revenues | $ | 1,184,181 | $ | 899,194 | 32% | $ | 4,285,797 | $ | 3,255,079 | 32% | |||||||||||||||||||||||||
Change in subscription deferred revenue, unbilled receivables and customer deposits | 643,344 | 398,564 | 696,437 | 533,227 | |||||||||||||||||||||||||||||||
Non-GAAP subscription billings | 1,827,525 | 1,297,758 | 41% | 4,982,234 | 3,788,306 | 32% | |||||||||||||||||||||||||||||
Effects of foreign currency rate fluctuations | (31,440) | (19,966) | |||||||||||||||||||||||||||||||||
Effects of fluctuations in billings duration | (242) | 295 | |||||||||||||||||||||||||||||||||
Non-GAAP adjusted subscription billings(2) | $ | 1,795,843 | 38% | $ | 4,962,563 | 31% | |||||||||||||||||||||||||||||
Professional services and other revenues: | |||||||||||||||||||||||||||||||||||
GAAP professional services and other revenues | $ | 66,149 | $ | 52,580 | 26% | $ | 233,687 | $ | 205,358 | 14% | |||||||||||||||||||||||||
Effects of foreign currency rate fluctuations | (1,470) | (639) | |||||||||||||||||||||||||||||||||
Non-GAAP adjusted professional service and other revenues(1) | $ | 64,679 | 23% | $ | 233,048 | 13% | |||||||||||||||||||||||||||||
Professional services and other billings: | |||||||||||||||||||||||||||||||||||
GAAP professional services and other revenues | $ | 66,149 | $ | 52,580 | 26% | $ | 233,687 | $ | 205,358 | 14% | |||||||||||||||||||||||||
Change in professional services and other deferred revenue | 13,433 | 8,114 | 13,085 | 8,549 | |||||||||||||||||||||||||||||||
Non-GAAP professional services and other billings | 79,582 | 60,694 | 31% | 246,772 | 213,907 | 15% | |||||||||||||||||||||||||||||
Effects of foreign currency rate fluctuations | (1,470) | (639) | |||||||||||||||||||||||||||||||||
Non-GAAP adjusted professional services and other billings(2) | $ | 78,112 | 29% | $ | 246,133 | 15% | |||||||||||||||||||||||||||||
Total revenues: | |||||||||||||||||||||||||||||||||||
GAAP total revenues | $ | 1,250,330 | $ | 951,774 | 31% | $ | 4,519,484 | $ | 3,460,437 | 31% | |||||||||||||||||||||||||
Effects of foreign currency rate fluctuations | (24,348) | (14,425) | |||||||||||||||||||||||||||||||||
Non-GAAP adjusted total revenues(1) | $ | 1,225,982 | 29% | $ | 4,505,059 | 30% | |||||||||||||||||||||||||||||
Total billings: | |||||||||||||||||||||||||||||||||||
GAAP total revenues | $ | 1,250,330 | $ | 951,774 | 31% | $ | 4,519,484 | $ | 3,460,437 | 31% | |||||||||||||||||||||||||
Change in total deferred revenue, unbilled receivables and customer deposits | 656,777 | 406,678 | 709,522 | 541,776 | |||||||||||||||||||||||||||||||
Non-GAAP total billings | 1,907,107 | 1,358,452 | 40% | 5,229,006 | 4,002,213 | 31% | |||||||||||||||||||||||||||||
Effects of foreign currency rate fluctuations | (32,910) | (20,605) | |||||||||||||||||||||||||||||||||
Effects of fluctuations in billings duration | (242) | 295 | |||||||||||||||||||||||||||||||||
Non-GAAP adjusted total billings(2) | $ | 1,873,955 | 38% | $ | 5,208,696 | 30% | |||||||||||||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||||||||||||||
GAAP subscription cost of revenues | $ | 209,900 | $ | 148,244 | $ | 730,835 | $ | 549,642 | |||||||||||||||||||||||||||
Stock-based compensation | (26,172) | (18,709) | (98,258) | (72,728) | |||||||||||||||||||||||||||||||
Amortization of purchased intangibles | (8,142) | (7,538) | (35,823) | (24,133) | |||||||||||||||||||||||||||||||
Non-GAAP subscription cost of revenues | $ | 175,586 | $ | 121,997 | $ | 596,754 | $ | 452,781 | |||||||||||||||||||||||||||
GAAP professional services and other cost of revenues | $ | 69,204 | $ | 63,209 | $ | 256,278 | $ | 247,003 | |||||||||||||||||||||||||||
Stock-based compensation | (13,696) | (11,374) | (51,553) | (43,123) | |||||||||||||||||||||||||||||||
Non-GAAP professional services and other cost of revenues | $ | 55,508 | $ | 51,835 | $ | 204,725 | $ | 203,880 | |||||||||||||||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||||||||
GAAP subscription gross profit | $ | 974,281 | $ | 750,950 | $ | 3,554,962 | $ | 2,705,437 | |||||||||||||||||||||||||||
Stock-based compensation | 26,172 | 18,709 | 98,258 | 72,728 | |||||||||||||||||||||||||||||||
Amortization of purchased intangibles | 8,142 | 7,538 | 35,823 | 24,133 | |||||||||||||||||||||||||||||||
Non-GAAP subscription gross profit | $ | 1,008,595 | $ | 777,197 | $ | 3,689,043 | $ | 2,802,298 | |||||||||||||||||||||||||||
GAAP professional services and other gross loss | $ | (3,055) | $ | (10,629) | $ | (22,591) | $ | (41,645) | |||||||||||||||||||||||||||
Stock-based compensation | 13,696 | 11,374 | 51,553 | 43,123 | |||||||||||||||||||||||||||||||
Non-GAAP professional services and other gross profit | $ | 10,641 | $ | 745 | $ | 28,962 | $ | 1,478 | |||||||||||||||||||||||||||
GAAP gross profit | $ | 971,226 | $ | 740,321 | $ | 3,532,371 | $ | 2,663,792 | |||||||||||||||||||||||||||
Stock-based compensation | 39,868 | 30,083 | 149,811 | 115,851 | |||||||||||||||||||||||||||||||
Amortization of purchased intangibles | 8,142 | 7,538 | 35,823 | 24,133 | |||||||||||||||||||||||||||||||
Non-GAAP gross profit | $ | 1,019,236 | $ | 777,942 | $ | 3,718,005 | $ | 2,803,776 | |||||||||||||||||||||||||||
Gross margin: | |||||||||||||||||||||||||||||||||||
GAAP subscription gross margin | 82 | % | 84 | % | 83 | % | 83 | % | |||||||||||||||||||||||||||
Stock-based compensation as % of subscription revenues | 2 | % | 2 | % | 2 | % | 2 | % | |||||||||||||||||||||||||||
Amortization of purchased intangibles as % of subscription revenues | 1 | % | 0 | % | 1 | % | 1 | % | |||||||||||||||||||||||||||
Non-GAAP subscription gross margin | 85 | % | 86 | % | 86 | % | 86 | % | |||||||||||||||||||||||||||
GAAP professional services and other gross margin | (5 | %) | (20 | %) | (10 | %) | (20 | %) | |||||||||||||||||||||||||||
Stock-based compensation as % of professional services and other revenues | 21 | % | 21 | % | 22 | % | 21 | % | |||||||||||||||||||||||||||
Non-GAAP professional services and other gross margin | 16 | % | 1 | % | 12 | % | 1 | % | |||||||||||||||||||||||||||
GAAP gross margin | 78 | % | 78 | % | 78 | % | 77 | % | |||||||||||||||||||||||||||
Stock-based compensation as % of total revenues | 3 | % | 3 | % | 3 | % | 3 | % | |||||||||||||||||||||||||||
Amortization of purchased intangibles as % of total revenues | 1 | % | 1 | % | 1 | % | 1 | % | |||||||||||||||||||||||||||
Non-GAAP gross margin | 82 | % | 82 | % | 82 | % | 81 | % | |||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
GAAP sales and marketing expenses | $ | 533,853 | $ | 416,005 | $ | 1,855,016 | $ | 1,534,284 | |||||||||||||||||||||||||||
Stock-based compensation | (92,330) | (68,337) | (320,328) | (268,408) | |||||||||||||||||||||||||||||||
Amortization of purchased intangibles | (314) | (161) | (1,250) | (161) | |||||||||||||||||||||||||||||||
Non-GAAP sales and marketing expenses | $ | 441,209 | $ | 347,507 | $ | 1,533,438 | $ | 1,265,715 | |||||||||||||||||||||||||||
GAAP research and development expenses | $ | 284,297 | $ | 202,328 | $ | 1,024,327 | $ | 748,369 | |||||||||||||||||||||||||||
Stock-based compensation | (78,965) | (50,562) | (282,244) | (194,821) | |||||||||||||||||||||||||||||||
Amortization of purchased intangibles | (455) | (455) | (1,820) | (1,820) | |||||||||||||||||||||||||||||||
Non-GAAP research and development expenses | $ | 204,877 | $ | 151,311 | $ | 740,263 | $ | 551,728 | |||||||||||||||||||||||||||
GAAP general and administrative expenses | $ | 135,146 | $ | 93,476 | $ | 454,165 | $ | 339,016 | |||||||||||||||||||||||||||
Stock-based compensation | (34,236) | (21,069) | (118,070) | (83,115) | |||||||||||||||||||||||||||||||
Amortization of purchased intangibles | (2,202) | (2,341) | (6,867) | (8,459) | |||||||||||||||||||||||||||||||
Business combination and other related costs | (2,050) | (505) | (6,143) | (625) | |||||||||||||||||||||||||||||||
Non-GAAP general and administrative expenses | $ | 96,658 | $ | 69,561 | $ | 323,085 | $ | 246,817 | |||||||||||||||||||||||||||
GAAP total operating expenses | $ | 953,296 | $ | 711,809 | $ | 3,333,508 | $ | 2,621,669 | |||||||||||||||||||||||||||
Stock-based compensation | (205,531) | (139,968) | (720,642) | (546,344) | |||||||||||||||||||||||||||||||
Amortization of purchased intangibles | (2,971) | (2,957) | (9,937) | (10,440) | |||||||||||||||||||||||||||||||
Business combination and other related costs | (2,050) | (505) | (6,143) | (625) | |||||||||||||||||||||||||||||||
Non-GAAP total operating expenses | $ | 742,744 | $ | 568,379 | $ | 2,596,786 | $ | 2,064,260 | |||||||||||||||||||||||||||
Income from operations: | |||||||||||||||||||||||||||||||||||
GAAP income from operations | $ | 17,930 | $ | 28,512 | $ | 198,863 | $ | 42,123 | |||||||||||||||||||||||||||
Stock-based compensation | 245,399 | 170,051 | 870,453 | 662,195 | |||||||||||||||||||||||||||||||
Amortization of purchased intangibles | 11,113 | 10,495 | 45,760 | 34,573 | |||||||||||||||||||||||||||||||
Business combination and other related costs | 2,050 | 505 | 6,143 | 625 | |||||||||||||||||||||||||||||||
Non-GAAP income from operations | $ | 276,492 | $ | 209,563 | $ | 1,121,219 | $ | 739,516 | |||||||||||||||||||||||||||
Operating margin: | |||||||||||||||||||||||||||||||||||
GAAP operating margin | 1 | % | 3 | % | 5 | % | 1 | % | |||||||||||||||||||||||||||
Stock-based compensation as % of total revenues | 20 | % | 18 | % | 19 | % | 19 | % | |||||||||||||||||||||||||||
Amortization of purchased intangibles as % of total revenues | 1 | % | 1 | % | 1 | % | 1 | % | |||||||||||||||||||||||||||
Business combination and other related costs as % of total revenues | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||||||||||||||||
Non-GAAP operating margin | 22 | % | 22 | % | 25 | % | 21 | % | |||||||||||||||||||||||||||
Net income: | |||||||||||||||||||||||||||||||||||
GAAP net income | $ | 16,648 | $ | 598,724 | $ | 118,503 | $ | 626,698 | |||||||||||||||||||||||||||
Stock-based compensation | 245,399 | 170,051 | 870,453 | 662,195 | |||||||||||||||||||||||||||||||
Amortization of purchased intangibles | 11,113 | 10,495 | 45,760 | 34,573 | |||||||||||||||||||||||||||||||
Business combination and other related costs | 2,050 | 505 | 6,143 | 625 | |||||||||||||||||||||||||||||||
Amortization of debt discount and issuance costs | 2,492 | 8,475 | 24,478 | 33,283 | |||||||||||||||||||||||||||||||
Loss on extinguishment of 2022 Notes | 4,954 | — | 46,611 | — | |||||||||||||||||||||||||||||||
Income tax expense effects related to the above adjustments | (47,735) | (27,153) | (186,417) | (136,957) | |||||||||||||||||||||||||||||||
Income tax benefit from the release of a valuation allowance on the deferred tax assets (3) | — | (574,150) | — | (574,150) | |||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 234,921 | $ | 186,947 | $ | 925,531 | $ | 646,267 | |||||||||||||||||||||||||||
Net income per share - basic and diluted: | |||||||||||||||||||||||||||||||||||
GAAP net income per share - basic | $ | 0.09 | $ | 3.17 | $ | 0.61 | $ | 3.36 | |||||||||||||||||||||||||||
GAAP net income per share - diluted | $ | 0.08 | $ | 3.03 | $ | 0.59 | $ | 3.18 | |||||||||||||||||||||||||||
Non-GAAP net income per share - basic | $ | 1.20 | $ | 0.99 | $ | 4.79 | $ | 3.47 | |||||||||||||||||||||||||||
Non-GAAP net income per share - diluted | $ | 1.17 | $ | 0.96 | $ | 4.63 | $ | 3.32 | |||||||||||||||||||||||||||
GAAP weighted-average shares used to compute net income per share - basic | 195,461 | 189,042 | 193,096 | 186,466 | |||||||||||||||||||||||||||||||
GAAP weighted-average shares used to compute net income per share - diluted | 202,455 | 197,843 | 202,478 | 197,223 | |||||||||||||||||||||||||||||||
Effects of in-the-money portion of convertible senior notes(4) | (1,092) | (2,837) | (2,773) | (2,736) | |||||||||||||||||||||||||||||||
Non-GAAP weighted-average shares used to compute net income per share - diluted | 201,363 | 195,006 | 199,705 | 194,487 | |||||||||||||||||||||||||||||||
Free cash flow: | |||||||||||||||||||||||||||||||||||
GAAP net cash provided by operating activities | $ | 685,525 | $ | 421,211 | $ | 1,786,599 | $ | 1,235,972 | |||||||||||||||||||||||||||
Purchases of property and equipment | (134,000) | (79,003) | (419,327) | (264,892) | |||||||||||||||||||||||||||||||
Repayments of convertible senior notes attributable to debt discount | 13,449 | — | 81,958 | — | |||||||||||||||||||||||||||||||
Non-GAAP free cash flow | $ | 564,974 | $ | 342,208 | $ | 1,449,230 | $ | 971,080 | |||||||||||||||||||||||||||
Free cash flow margin: | |||||||||||||||||||||||||||||||||||
GAAP net cash provided by operating activities as % of total revenues | 55 | % | 44 | % | 39 | % | 36 | % | |||||||||||||||||||||||||||
Purchases of property and equipment as % of total revenues | (11 | %) | (8 | %) | (9 | %) | (8 | %) | |||||||||||||||||||||||||||
Repayments of convertible senior notes attributable to debt discount as % of total revenues | 1 | % | — | % | 2 | % | — | % | |||||||||||||||||||||||||||
Non-GAAP free cash flow margin | 45 | % | 36 | % | 32 | % | 28 | % |
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Cover |
Jan. 27, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Jan. 27, 2021 |
Entity Registrant Name | SERVICENOW, INC. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-35580 |
Entity Tax Identification Number | 20-2056195 |
Entity Address, Address Line One | 2225 Lawson Lane |
Entity Address, City or Town | Santa Clara |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 95054 |
City Area Code | 408 |
Local Phone Number | 501-8550 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common stock, par value $0.001 per share |
Trading Symbol | NOW |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001373715 |
Amendment Flag | false |
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