Sign In  |  Register  |  About Los Altos  |  Contact Us

Los Altos, CA
September 01, 2020 1:26pm
7-Day Forecast | Traffic
  • Search Hotels in Los Altos

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

ServiceNow Reports Fourth Quarter and Full-Year 2021 Financial Results

  • ServiceNow exceeds high end of guidance across all Q4 2021 metrics; expects strong 2022 subscription revenues growth with constant currency subscription revenues growth acceleration year-over-year in Q1 2022
  • Subscription revenues of $1,523 million in Q4 2021, representing 29% year-over-year growth, 30% adjusted for constant currency
  • Current remaining performance obligations of $5.7 billion as of Q4 2021, representing 29% year-over-year growth, 32% adjusted for constant currency
  • 135 transactions over $1 million in net new annual contract value in Q4 2021, representing 52% year-over-year growth

ServiceNow (NYSE: NOW), the leading digital workflow company making the world work better for everyone, today announced financial results for its fourth quarter ended December 31, 2021, with subscription revenues of $1,523 million in Q4 2021, representing 29% year-over-year growth, 30% adjusted for constant currency.

As of December 31, 2021, current remaining performance obligations (“cRPO”), contract revenue that will be recognized as revenue in the next 12 months, was $5.7 billion, representing 29% year-over-year growth and 32% adjusted for constant currency. During the quarter, ServiceNow closed 135 transactions with more than $1 million in net new annual contract value, representing 52% year-over-year growth. The company now has 1,359 total customers with more than $1 million in annual contract value, representing 25% year-over-year growth in customers.

“We once again reported results that significantly beat the high end of expectations," said ServiceNow President and CEO Bill McDermott. "Customer demand for ServiceNow’s innovative platform is stronger than ever. Our unique culture has made us one of the best places to work. We are growing like a fast-moving startup with the profitability of a global market leader.”

“Q4 was an outstanding quarter closing out an already phenomenal year of outperformance,” said ServiceNow CFO Gina Mastantuono. “The company is firing on all cylinders and we enter 2022 with tremendous momentum. We expect constant currency subscription revenue growth to accelerate year-over-year in Q1, setting us up for another strong year and putting us well on our way to becoming a $15 billion plus revenue company.”

During the quarter, ServiceNow continued to invest in the Now Platform with the acquisitions of ERP migration company Gekkobrain and software testing automation company DotWalk. ServiceNow deepened its strategic partnership with EY to further revolutionize finance and tax services on the Now Platform in support of EY’s goal of creating a $1 billion business with ServiceNow by 2025. ServiceNow expanded its alliance with KPMG firms to help customers accelerate ESG impact and modernize risk and resilience. ServiceNow was recently named the preferred workflow partner for DXC Platform X and further strengthened its partnership with the formation of a DXC ServiceNow Strategic Business Group. The company also released ServiceNow Impact, a new solution designed to help customers accelerate the return on their digital transformation investments.

Fourth Quarter 2021 GAAP and Non-GAAP Results:

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

 

Fourth Quarter 2021

GAAP Results

 

Fourth Quarter 2021 Non-GAAP Results(1)

 

Amount

($ millions)

Year/Year

Growth (%)

 

Amount

($ millions)(2)

Year/Year

Growth (%)

Adjusted

Amount

($ millions)(2)

Adjusted

Year/Year

Growth (%)

Subscription revenues

$1,523

29%

 

$1,538

30%

 

 

Professional services and other revenues

$91

38%

 

$91

38%

 

 

Total revenues

$1,614

29%

 

$1,629

30%

 

 

 

 

 

 

 

 

 

 

Subscription billings

 

 

 

$2,420

32%

$2,432

33%

Professional services and other billings

 

 

 

$113

43%

$113

43%

Total billings

 

 

 

$2,533

33%

$2,545

33%

 

 

 

 

 

 

 

 

 

Amount

($ billions)

Year/Year

Growth (%)

 

 

 

Amount

($ billions)(2)

Year/Year

Growth (%)

cRPO

$5.7

29%

 

 

 

$5.8

32%

RPO

$11.5

29%

 

 

 

$11.8

32%

 

 

 

 

 

 

 

 

 

Amount

($ millions)

Margin (%)

 

Amount

($ millions)

Margin (%)

 

 

Subscription gross profit

$1,241

82%

 

$1,295

85%

 

 

Professional services and other gross profit (loss)

($2)

(2%)

 

$14

15%

 

 

Total gross profit

$1,239

77%

 

$1,309

81%

 

 

Income from operations

$35

2%

 

$367

23%

 

 

Net cash provided by operating activities

$844

52%

 

 

 

 

 

Free cash flow

 

 

 

$744

46%

 

 

 

 

 

 

 

 

 

 

 

Amount

($ millions)

Earnings per

Basic/Diluted

Share ($)

 

Amount

($ millions)

Earnings per

Basic/Diluted

Share ($)

 

 

Net income

$26

$0.13/ $0.13

 

$296

$1.49/ $1.46

 

 

(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)

Non-GAAP subscription revenues, professional services and other revenues, total revenues, cRPO, RPO and adjusted professional services and other billings 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.



Note: Numbers rounded for presentation purposes.

Full-Year 2021 GAAP and Non-GAAP Results:

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

 

Full Year 2021

GAAP Results

 

Full-Year 2021 Non-GAAP Results(1)

 

Amount

($ millions)

Year/Year

Growth (%)

 

Amount

($ millions)(2)

Year/Year

Growth (%)

Adjusted

Amount

($ millions)(2)

Adjusted

Year/Year

Growth (%)

Subscription revenues

$5,573

30 %

 

$5,496

28 %

 

 

Professional services and other revenues

$323

39 %

 

$317

36 %

 

 

Total revenues

$5,896

30 %

 

$5,813

29 %

 

 

 

 

 

 

 

 

 

 

Subscription billings

 

 

 

6,494

30 %

6,388

28 %

Professional services and other billings

 

 

 

356

45 %

350

42 %

Total billings

 

 

 

6,850

31 %

6,738

29 %

 

 

 

 

 

 

 

 

 

Amount

($ billions)

Year/Year

Growth (%)

 

 

 

Amount

($ billions)(2)

Year/Year

Growth (%)

cRPO

$5.7

29%

 

 

 

$5.8

32%

RPO

$11.5

29%

 

 

 

$11.8

32%

 

 

 

 

 

 

 

 

 

Amount

($ millions)

Margin (%)

 

Amount

($ millions)

Margin (%)

 

 

Subscription gross profit

$4,551

82%

 

$4,743

85%

 

 

Professional services and other gross profit (loss)

($8)

(2%)

 

$51

16%

 

 

Total gross profit

$4,543

77%

 

$4,794

81%

 

 

Income from operations

$257

4%

 

$1,482

25%

 

 

Net cash provided by operating activities

$2,191

37%

 

 

 

 

 

Free cash flow

 

 

 

$1,867

32%

 

 

 

 

 

 

 

 

 

 

 

Amount

($ millions)

Earnings per

Basic/Diluted

Share ($)

 

Amount

($ millions)

Earnings per

Basic/Diluted

Share ($)

 

 

Net income

230

$1.16/ $1.13

 

$1,201

$6.07/ $5.92

 

 

(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)

Non-GAAP subscription revenues, professional services and other revenues, total revenues, cRPO, RPO and adjusted professional services and other billings 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.



Note: Numbers rounded for presentation purposes.

Financial Outlook

Our guidance includes GAAP and non-GAAP financial measures. The non-GAAP growth rates for subscription revenues and cRPO are only adjusted for constant currency to provide better visibility into the underlying business trends. Since September 30, 2021, ServiceNow has seen an incremental strengthening of the U.S. dollar resulting in a foreign exchange (“FX”) headwind in 2022 (estimated to be approximately a $110 million currency headwind for 2022 subscription revenue and a $75 million currency headwind for Q1 2022 cRPO).

The following table summarizes our guidance for the first quarter 2022:

 

First Quarter 2022

GAAP Guidance

 

First Quarter 2022

Non-GAAP Guidance(1)

 

Amount

($ millions)(2)

Year/Year

Growth (%)

 

Constant Currency

Year/ Year Growth (%)

Subscription revenues

$1,610 - $1,615

25 %

 

27.5 %

 

 

 

 

 

cRPO

 

28 %

 

29.5 %

 

 

 

 

Margin (%)

Income from operations

 

 

 

25%

 

 

 

 

 

 

 

 

 

Amount

(millions)

Weighted-average shares used to compute diluted net income per share

 

203

(1)

We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Guidance” for a reconciliation of GAAP to non-GAAP measures.

(2)

Guidance for GAAP subscription revenues is based on the 31-day average of foreign exchange rates for December 2021 for entities reporting in currencies other than U.S. Dollars.

The following table summarizes our guidance for the full-year 2022:

 

Full-Year 2022

GAAP Guidance

 

Full-Year 2022

Non-GAAP Guidance(1)

 

Amount

($ millions)(2)

Year/Year

Growth (%)

 

Constant Currency

Year/ Year Growth (%)

Subscription revenues

$7,020 - $7,040

26 %

 

28 %

 

 

 

 

 

 

 

 

 

Margin (%)

Subscription gross profit

 

 

 

86%

Income from operations

 

 

 

25%

Free cash flow

 

 

 

31%

 

 

 

 

 

 

 

 

 

Amount

(millions)

Weighted-average shares used to compute diluted net income per share

 

204

(1)

We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Guidance” for a reconciliation of GAAP to non-GAAP measures.

(2)

GAAP subscription revenues for the future quarters included in our full-year 2022 guidance are based on the 31-day average of foreign exchange rates for December 2021 for entities reporting in currencies other than U.S. Dollars.

Conference Call Details

The conference call will begin at 2 p.m. Pacific Time (22:00 GMT) on January 26, 2022. 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/749924992.

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.

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.

  • Revenues. We adjust revenues and related growth rates 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 Q4 2020, the average exchange rates in effect for our major currencies were 1 USD to 0.84 Euros and 1 USD to 0.76 British Pound Sterling (“GBP”)), rather than the actual average exchange rates in effect during the current period (for Q4 2021, the average exchange rates in effect for our major currencies were 1 USD to 0.87 Euros and 1 USD to 0.74 GBP). We believe the presentation of revenues and related growth rates 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 and related growth rates 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. While we believe billings is one indicator of the performance of our business, an increase or decrease in billings may not reflect the actual performance for that reporting period. As a result, our billings metric has become less indicative of the actual performance of our business over time and we do not plan to disclose this metric in the future.
  • Remaining performance obligations and current remaining performance obligations. We adjust cRPO and remaining performance obligations (“RPO”) and related growth rates 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 Q4 2020, the end of the period exchange rates in effect for our major currencies were 1 USD to 0.82 Euros and 1 USD to 0.73 GBP), rather than the actual end of the period exchange rates in effect during the current period (for Q4 2021, the end of the period exchange rates in effect for our major currencies were 1 USD to 0.88 Euros and 1 USD to 0.74 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: experiencing an actual or perceived cyber-security event; our ability to comply with evolving privacy laws, data transfer restrictions, and other foreign and domestic standards related to data and the Internet; errors, interruptions, delays, or security breaches in or of our service or data centers; our ability to maintain and attract key employees and manage workplace culture; alleged violations of laws and regulations, including those relating to anti-bribery and anti-corruption and those relating to public sector contracting requirements; our ability to compete successfully against existing and new competitors; our ability to predict, prepare for and respond promptly to rapidly evolving technological, market and customer developments; 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; our ability to develop and gain customer demand for and acceptance of new and improved products and services; material changes in the value of foreign currencies relative to the U.S. Dollar; the continued impact and duration of COVID-19 on our business, future financial performance and global economic conditions, including any subsequent waves of outbreak or new variant strains of the COVID-19 virus, the effectiveness, extent and duration of mitigation efforts such as “shelter in place” and other government responses, the availability of vaccinations; our ability to consummate and realize the benefits of any strategic transactions or acquisitions; and fluctuations and volatility in our stock price.

Further information on these and other factors that could affect our financial results are included in our Form 10-Q for the quarter ended September 30, 2021 and in other filings we make with the Securities and Exchange Commission from time to time, including our Form 10-K that will be filed for the year ended December 31, 2021.

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) makes the world work better for everyone. Our cloud-based platform and solutions help digitize and unify organizations so that they can find smarter, faster, better ways to make work flow. So employees and customers can be more connected, more innovative, and more agile. And we can all create the future we imagine. The world works with ServiceNowTM. For more information, visit: www.servicenow.com.

© 2022 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

 

Twelve Months Ended

 

December 31,

2021

 

December 31,

2020

 

December 31,

2021

 

December 31,

2020

Revenues:

 

 

 

 

 

 

 

Subscription

$

1,523

 

 

$

1,184

 

 

$

5,573

 

 

$

4,286

 

Professional services and other

 

91

 

 

 

66

 

 

 

323

 

 

 

233

 

Total revenues

 

1,614

 

 

 

1,250

 

 

 

5,896

 

 

 

4,519

 

Cost of revenues (1):

 

 

 

 

 

 

 

Subscription

 

282

 

 

 

210

 

 

 

1,022

 

 

 

731

 

Professional services and other

 

93

 

 

 

69

 

 

 

331

 

 

 

256

 

Total cost of revenues

 

375

 

 

 

279

 

 

 

1,353

 

 

 

987

 

Gross profit

 

1,239

 

 

 

971

 

 

 

4,543

 

 

 

3,532

 

Operating expenses (1):

 

 

 

 

 

 

 

Sales and marketing

 

632

 

 

 

534

 

 

 

2,292

 

 

 

1,855

 

Research and development

 

392

 

 

 

284

 

 

 

1,397

 

 

 

1,024

 

General and administrative

 

180

 

 

 

135

 

 

 

597

 

 

 

454

 

Total operating expenses

 

1,204

 

 

 

953

 

 

 

4,286

 

 

 

3,333

 

Income from operations

 

35

 

 

 

18

 

 

 

257

 

 

 

199

 

Interest expense

 

(7

)

 

 

(8

)

 

 

(28

)

 

 

(33

)

Other income (expense), net

 

4

 

 

 

4

 

 

 

20

 

 

 

(16

)

Income before income taxes

 

32

 

 

 

14

 

 

 

249

 

 

 

150

 

Provision for (benefit from) income taxes

 

6

 

 

 

(3

)

 

 

19

 

 

 

31

 

Net income

$

26

 

 

$

17

 

 

$

230

 

 

$

119

 

Net income per share - basic

$

0.13

 

 

$

0.09

 

 

$

1.16

 

 

$

0.61

 

Net income per share - diluted

$

0.13

 

 

$

0.08

 

 

$

1.13

 

 

$

0.59

 

Weighted-average shares used to compute net income per share - basic

 

199

 

 

 

195

 

 

 

198

 

 

 

193

 

Weighted-average shares used to compute net income per share - diluted

 

204

 

 

 

202

 

 

 

203

 

 

 

202

 

(1)

Includes stock-based compensation as follows:

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

2021

 

December 31,

2020

 

December 31,

2021

 

December 31,

2020

Cost of revenues:

 

 

 

 

 

 

 

Subscription

$

33

 

 

$

26

 

 

$

128

 

 

$

98

 

Professional services and other

 

16

 

 

 

14

 

 

 

59

 

 

 

52

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

96

 

 

92

 

 

389

 

 

320

Research and development

 

107

 

 

 

79

 

 

 

395

 

 

 

282

 

General and administrative

 

50

 

 

 

34

 

 

 

160

 

 

 

118

 

ServiceNow, Inc.

Condensed Consolidated Balance Sheets

(in millions)

(unaudited)

 

December 31,

2021

 

December 31,

2020

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,728

 

 

$

1,677

 

Short-term investments

 

1,576

 

 

 

1,415

 

Accounts receivable, net

 

1,390

 

 

 

1,009

 

Current portion of deferred commissions

 

303

 

 

 

229

 

Prepaid expenses and other current assets

 

223

 

 

 

192

 

Total current assets

 

5,220

 

 

 

4,522

 

Deferred commissions, less current portion

 

623

 

 

444

Long-term investments

 

1,630

 

 

 

1,468

 

Property and equipment, net

 

766

 

 

 

660

 

Operating lease right-of-use assets

 

591

 

 

 

454

 

Intangible assets, net

 

287

 

 

 

153

 

Goodwill

 

777

 

 

 

241

 

Deferred tax assets

 

692

 

 

 

673

 

Other assets

 

212

 

 

 

100

 

Total assets

$

10,798

 

 

$

8,715

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

89

 

 

$

34

 

Accrued expenses and other current liabilities

 

850

 

 

 

668

 

Current portion of deferred revenue

 

3,836

 

 

 

2,963

 

Current portion of operating lease liabilities

 

82

 

 

 

72

 

Current debt, net

 

92

 

 

 

 

Total current liabilities

 

4,949

 

 

 

3,737

 

Deferred revenue, less current portion

 

63

 

 

 

45

 

Operating lease liabilities, less current portion

 

556

 

 

 

423

 

Long-term debt, net

 

1,484

 

 

 

1,640

 

Other long-term liabilities

 

51

 

 

 

36

 

Stockholders’ equity

 

3,695

 

 

 

2,834

 

Total liabilities and stockholders’ equity

$

10,798

 

 

$

8,715

 

ServiceNow, Inc.

Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

2021

 

December 31,

2020

 

December 31,

2021

 

December 31,

2020

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income

$

26

 

 

$

17

 

 

$

230

 

 

$

119

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

126

 

 

 

93

 

 

 

472

 

 

 

336

 

Amortization of deferred commissions

 

83

 

 

 

61

 

 

 

294

 

 

 

218

 

Amortization of debt discount and issuance costs

 

2

 

 

 

2

 

 

 

7

 

 

 

24

 

Stock-based compensation

 

302

 

 

 

245

 

 

 

1,131

 

 

 

870

 

Deferred income taxes

 

(13

)

 

 

(18

)

 

 

(34

)

 

 

(24

)

Repayments of convertible senior notes attributable to debt discount

 

 

 

 

(13

)

 

 

(15

)

 

 

(82

)

Loss on extinguishment of 2022 Notes

 

 

 

 

5

 

 

 

3

 

 

 

47

 

Other

 

17

 

 

 

(3

)

 

 

45

 

 

 

(2

)

Changes in operating assets and liabilities, net of effect of business combinations:

 

 

 

 

 

 

 

Accounts receivable

 

(620

)

 

 

(362

)

 

 

(401

)

 

 

(152

)

Deferred commissions

 

(221

)

 

 

(144

)

 

 

(565

)

 

 

(365

)

Prepaid expenses and other assets

 

(15

)

 

 

(13

)

 

 

(93

)

 

 

(55

)

Accounts payable

 

16

 

 

 

(36

)

 

 

55

 

 

 

(34

)

Deferred revenue

 

913

 

 

 

645

 

 

 

960

 

 

 

711

 

Accrued expenses and other liabilities

 

228

 

 

 

206

 

 

 

102

 

 

 

175

 

Net cash provided by operating activities

 

844

 

 

 

685

 

 

 

2,191

 

 

 

1,786

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of property and equipment

 

(100

)

 

 

(134

)

 

 

(392

)

 

 

(419

)

Business combinations, net of cash acquired

 

(7

)

 

 

1

 

 

 

(785

)

 

 

(107

)

Purchases of intangibles

 

(7

)

 

 

(7

)

 

 

(7

)

 

 

(13

)

Purchases of investments

 

(744

)

 

 

(695

)

 

 

(2,485

)

 

 

(2,922

)

Purchases of strategic investments

 

(43

)

 

 

(10

)

 

 

(71

)

 

 

(12

)

Sales and maturities of investments

 

540

 

 

 

666

 

 

 

2,119

 

 

 

1,965

 

Other

 

2

 

 

 

2

 

 

 

14

 

 

 

1

 

Net cash used in investing activities

 

(359

)

 

 

(177

)

 

 

(1,607

)

 

 

(1,507

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Net proceeds from borrowings on 2030 Notes

 

 

 

 

 

 

 

 

 

 

1,482

 

Repayments of convertible senior notes attributable to principal

 

(2

)

 

 

(59

)

 

 

(61

)

 

 

(1,628

)

Net proceeds from unwind of 2022 Note Hedge

 

 

 

 

 

 

 

 

 

 

1,106

 

Proceeds from employee stock plans

 

2

 

 

 

4

 

 

 

167

 

 

 

146

 

Taxes paid related to net share settlement of equity awards

 

(155

)

 

 

(148

)

 

 

(612

)

 

 

(509

)

Net cash (used in) provided by financing activities

 

(155

)

 

 

(203

)

 

 

(506

)

 

 

597

 

Foreign currency effect on cash, cash equivalents and restricted cash

 

(4

)

 

 

22

 

 

 

(25

)

 

 

25

 

Net change in cash, cash equivalents and restricted cash

 

326

 

 

 

327

 

 

 

53

 

 

 

901

 

Cash, cash equivalents and restricted cash at beginning of period

 

1,406

 

 

 

1,352

 

 

 

1,679

 

 

 

778

 

Cash, cash equivalents and restricted cash at end of period

$

1,732

 

 

$

1,679

 

 

$

1,732

 

 

$

1,679

 

ServiceNow, Inc.

GAAP to Non-GAAP Reconciliation

(in millions, except cRPO, RPO and per share data)

(unaudited)

 

Three Months Ended

 

 

 

Twelve Months Ended

 

 

 

December 31,

2021

 

December 31,

2020

 

Growth

Rates

 

December 31,

2021

 

December 31,

2020

 

Growth

Rates

Subscription revenues:

 

 

 

 

 

 

 

 

 

 

 

GAAP subscription revenues

$

1,523

 

 

$

1,184

 

 

29

%

 

$

5,573

 

 

$

4,286

 

 

30

%

Effects of foreign currency rate fluctuations

 

15

 

 

 

 

 

 

 

(77

)

 

 

 

 

Non-GAAP subscription revenues(1)

$

1,538

 

 

 

 

30

%

 

$

5,496

 

 

 

 

28

%

 

 

 

 

 

 

 

 

 

 

 

 

Professional services and other revenues:

 

 

 

 

 

 

 

 

 

 

 

GAAP professional services and other revenues

$

91

 

 

$

66

 

 

38

%

 

$

323

 

 

$

233

 

 

39

%

Effects of foreign currency rate fluctuations

 

 

 

 

 

 

 

 

(6

)

 

 

 

 

Non-GAAP professional service and other revenues(1)

$

91

 

 

 

 

38

%

 

$

317

 

 

 

 

36

%

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues:

 

 

 

 

 

 

 

 

 

 

 

GAAP total revenues

$

1,614

 

 

$

1,250

 

 

29

%

 

$

5,896

 

 

$

4,519

 

 

30

%

Effects of foreign currency rate fluctuations

 

15

 

 

 

 

 

 

 

(83

)

 

 

 

 

Non-GAAP total revenues(1)

$

1,629

 

 

 

 

30

%

 

$

5,813

 

 

 

 

29

%

 

 

 

 

 

 

 

 

 

 

 

 

cRPO (in billions):

 

 

 

 

 

 

 

 

 

 

 

GAAP cRPO

$

5.7

 

 

$

4.4

 

 

29

%

 

$

5.7

 

 

$

4.4

 

 

29

%

Effects of foreign currency rate fluctuations

 

0.1

 

 

 

 

 

 

 

0.1

 

 

 

 

 

Non-GAAP cRPO(2)

$

5.8

 

 

 

 

32

%

 

$

5.8

 

 

 

 

32

%

 

 

 

 

 

 

 

 

 

 

 

 

RPO (in billions):

 

 

 

 

 

 

 

 

 

 

 

GAAP RPO

$

11.5

 

 

$

8.9

 

 

29

%

 

$

11.5

 

 

$

8.9

 

 

29

%

Effects of foreign currency rate fluctuations

 

0.3

 

 

 

 

 

 

 

0.3

 

 

 

 

 

Non-GAAP RPO(2)

$

11.8

 

 

 

 

32

%

 

$

11.8

 

 

 

 

32

%

 

 

 

 

 

 

 

 

 

 

 

 

Subscription billings:

 

 

 

 

 

 

 

 

 

 

 

GAAP subscription revenues

$

1,523

 

 

$

1,184

 

 

29

%

 

$

5,573

 

 

$

4,286

 

 

30

%

Change in subscription deferred revenue, unbilled receivables and customer deposits

 

897

 

 

 

643

 

 

 

 

 

921

 

 

 

696

 

 

 

Non-GAAP subscription billings

 

2,420

 

 

 

1,827

 

 

32

%

 

 

6,494

 

 

 

4,982

 

 

30

%

Effects of foreign currency rate fluctuations

 

25

 

 

 

 

 

 

 

(68

)

 

 

 

 

Effects of fluctuations in billings duration

 

(13

)

 

 

 

 

 

 

(38

)

 

 

 

 

Non-GAAP adjusted subscription billings(3)

$

2,432

 

 

 

 

33

%

 

$

6,388

 

 

 

 

28

%

 

 

 

 

 

 

 

 

 

 

 

 

Professional services and other billings:

 

 

 

 

 

 

 

 

 

 

 

GAAP professional services and other revenues

$

91

 

 

$

66

 

 

37

%

 

$

323

 

 

$

233

 

 

39

%

Change in professional services and other deferred revenue

 

22

 

 

 

13

 

 

 

 

$

33

 

 

$

13

 

 

 

Non-GAAP professional services and other billings

 

113

 

 

 

79

 

 

43

%

 

 

356

 

 

 

246

 

 

45

%

Effects of foreign currency rate fluctuations

 

 

 

 

 

 

 

 

(6

)

 

 

 

 

Non-GAAP adjusted professional services and other billings(3)

$

113

 

 

 

 

43

%

 

$

350

 

 

 

 

42

%

 

 

 

 

 

 

 

 

 

 

 

 

Total billings:

 

 

 

 

 

 

 

 

 

 

 

GAAP total revenues

$

1,614

 

 

$

1,250

 

 

29

%

 

$

5,896

 

 

$

4,519

 

 

30

%

Change in total deferred revenue, unbilled receivables and customer deposits

 

919

 

 

 

657

 

 

 

 

 

954

 

 

 

710

 

 

 

Non-GAAP total billings

 

2,533

 

 

 

1,907

 

 

33

%

 

 

6,850

 

 

 

5,229

 

 

31

%

Effects of foreign currency rate fluctuations

 

25

 

 

 

 

 

 

 

(74

)

 

 

 

 

Effects of fluctuations in billings duration

 

(13

)

 

 

 

 

 

 

(38

)

 

 

 

 

Non-GAAP adjusted total billings(3)

$

2,545

 

 

 

 

33

%

 

$

6,738

 

 

 

 

29

%

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

GAAP subscription cost of revenues

$

282

 

 

$

210

 

 

 

 

$

1,022

 

 

$

731

 

 

 

Stock-based compensation

 

(33

)

 

 

(26

)

 

 

 

 

(128

)

 

 

(98

)

 

 

Amortization of purchased intangibles

 

(21

)

 

 

(8

)

 

 

 

 

(64

)

 

 

(36

)

 

 

Non-GAAP subscription cost of revenues

$

228

 

 

$

176

 

 

 

 

$

830

 

 

$

597

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP professional services and other cost of revenues

$

93

 

 

$

69

 

 

 

 

$

331

 

 

$

256

 

 

 

Stock-based compensation

 

(16

)

 

 

(14

)

 

 

 

 

(59

)

 

 

(52

)

 

 

Non-GAAP professional services and other cost of revenues

$

77

 

 

$

55

 

 

 

 

$

272

 

 

$

204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

GAAP subscription gross profit

$

1,241

 

 

$

974

 

 

 

 

$

4,551

 

 

$

3,555

 

 

 

Stock-based compensation

 

33

 

 

 

26

 

 

 

 

 

128

 

 

 

98

 

 

 

Amortization of purchased intangibles

 

21

 

 

 

8

 

 

 

 

 

64

 

 

 

36

 

 

 

Non-GAAP subscription gross profit

$

1,295

 

 

$

1,008

 

 

 

 

$

4,743

 

 

$

3,689

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP professional services and other gross loss

$

(2

)

 

$

(3

)

 

 

 

$

(8

)

 

$

(23

)

 

 

Stock-based compensation

 

16

 

 

 

14

 

 

 

 

 

59

 

 

 

52

 

 

 

Non-GAAP professional services and other gross profit

$

14

 

 

$

11

 

 

 

 

$

51

 

 

$

29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

$

1,239

 

 

$

971

 

 

 

 

$

4,543

 

 

$

3,532

 

 

 

Stock-based compensation

 

49

 

 

 

40

 

 

 

 

 

187

 

 

 

150

 

 

 

Amortization of purchased intangibles

 

21

 

 

 

8

 

 

 

 

 

64

 

 

 

36

 

 

 

Non-GAAP gross profit

$

1,309

 

 

$

1,019

 

 

 

 

$

4,794

 

 

$

3,718

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin:

 

 

 

 

 

 

 

 

 

 

 

GAAP subscription gross margin

 

82

%

 

 

82

%

 

 

 

 

82

%

 

 

83

%

 

 

Stock-based compensation as % of subscription revenues

 

2

%

 

 

2

%

 

 

 

 

2

%

 

 

2

%

 

 

Amortization of purchased intangibles as % of subscription revenues

 

1

%

 

 

1

%

 

 

 

 

1

%

 

 

1

%

 

 

Non-GAAP subscription gross margin

 

85

%

 

 

85

%

 

 

 

 

85

%

 

 

86

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP professional services and other gross margin

 

(2

%)

 

 

(5

%)

 

 

 

 

(2

%)

 

 

(10

%)

 

 

Stock-based compensation as % of professional services and other revenues

 

17

%

 

 

21

%

 

 

 

 

18

%

 

 

22

%

 

 

Non-GAAP professional services and other gross margin

 

15

%

 

 

16

%

 

 

 

 

16

%

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross margin

 

77

%

 

 

78

%

 

 

 

 

77

%

 

 

78

%

 

 

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

 

81

%

 

 

82

%

 

 

 

 

81

%

 

 

82

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

GAAP sales and marketing expenses

$

632

 

 

$

534

 

 

 

 

$

2,292

 

 

$

1,855

 

 

 

Stock-based compensation

 

(96

)

 

 

(92

)

 

 

 

 

(389

)

 

 

(320

)

 

 

Amortization of purchased intangibles

 

 

 

 

(1

)

 

 

 

 

(1

)

 

 

(1

)

 

 

Non-GAAP sales and marketing expenses

$

536

 

 

$

441

 

 

 

 

$

1,902

 

 

$

1,534

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP research and development expenses

$

392

 

 

$

284

 

 

 

 

$

1,397

 

 

$

1,024

 

 

 

Stock-based compensation

 

(107

)

 

 

(79

)

 

 

 

 

(395

)

 

 

(282

)

 

 

Amortization of purchased intangibles

 

(1

)

 

 

 

 

 

 

 

(1

)

 

 

(2

)

 

 

Business combination and other related costs

$

(5

)

 

$

 

 

 

 

$

(10

)

 

$

 

 

 

Non-GAAP research and development expenses

$

279

 

 

$

205

 

 

 

 

$

991

 

 

$

740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP general and administrative expenses

$

180

 

 

$

135

 

 

 

 

$

597

 

 

$

454

 

 

 

Stock-based compensation

 

(50

)

 

 

(34

)

 

 

 

 

(160

)

 

 

(118

)

 

 

Amortization of purchased intangibles

 

(2

)

 

 

(2

)

 

 

 

 

(10

)

 

 

(7

)

 

 

Business combination and other related costs

 

(1

)

 

 

(2

)

 

 

 

 

(8

)

 

 

(6

)

 

 

Non-GAAP general and administrative expenses

$

127

 

 

$

97

 

 

 

 

$

419

 

 

$

323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP total operating expenses

$

1,204

 

 

$

953

 

 

 

 

$

4,286

 

 

$

3,333

 

 

 

Stock-based compensation

 

(253

)

 

 

(205

)

 

 

 

 

(944

)

 

 

(720

)

 

 

Amortization of purchased intangibles

 

(3

)

 

 

(3

)

 

 

 

 

(12

)

 

 

(10

)

 

 

Business combination and other related costs

 

(6

)

 

 

(2

)

 

 

 

 

(18

)

 

 

(6

)

 

 

Non-GAAP total operating expenses

$

942

 

 

$

743

 

 

 

 

$

3,312

 

 

$

2,597

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations:

 

 

 

 

 

 

 

 

 

 

 

GAAP income from operations

$

35

 

 

$

18

 

 

 

 

$

257

 

 

$

199

 

 

 

Stock-based compensation

 

302

 

 

 

245

 

 

 

 

 

1,131

 

 

 

870

 

 

 

Amortization of purchased intangibles

 

24

 

 

 

11

 

 

 

 

 

76

 

 

 

46

 

 

 

Business combination and other related costs

 

6

 

 

 

2

 

 

 

 

 

18

 

 

 

6

 

 

 

Non-GAAP income from operations

$

367

 

 

$

276

 

 

 

 

$

1,482

 

 

$

1,121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin:

 

 

 

 

 

 

 

 

 

 

 

GAAP operating margin

 

2

%

 

 

1

%

 

 

 

 

4

%

 

 

5

%

 

 

Stock-based compensation as % of total revenues

 

19

%

 

 

20

%

 

 

 

 

19

%

 

 

19

%

 

 

Amortization of purchased intangibles as % of total revenues

 

2

%

 

 

1

%

 

 

 

 

2

%

 

 

1

%

 

 

Business combination and other related costs as % of total revenues

 

%

 

 

%

 

 

 

 

0

%

 

 

%

 

 

Non-GAAP operating margin

 

23

%

 

 

22

%

 

 

 

 

25

%

 

 

25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

$

26

 

 

$

17

 

 

 

 

$

230

 

 

$

119

 

 

 

Stock-based compensation

 

302

 

 

 

245

 

 

 

 

 

1,131

 

 

 

870

 

 

 

Amortization of purchased intangibles

 

24

 

 

 

11

 

 

 

 

 

76

 

 

 

46

 

 

 

Business combination and other related costs

 

6

 

 

 

2

 

 

 

 

 

18

 

 

 

6

 

 

 

Amortization of debt discount and issuance costs

 

2

 

 

 

2

 

 

 

 

 

7

 

 

 

24

 

 

 

Other

 

 

 

 

5

 

 

 

 

 

3

 

 

 

47

 

 

 

Income tax expense effects related to the above adjustments

 

(64

)

 

 

(47

)

 

 

 

 

(264

)

 

 

(186

)

 

 

Non-GAAP net income

$

296

 

 

$

235

 

 

 

 

$

1,201

 

 

$

926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share - basic and diluted:

 

 

 

 

 

 

 

 

 

 

 

GAAP net income per share - basic

$

0.13

 

 

$

0.09

 

 

 

 

$

1.16

 

 

$

0.61

 

 

 

GAAP net income per share - diluted

$

0.13

 

 

$

0.08

 

 

 

 

$

1.13

 

 

$

0.59

 

 

 

Non-GAAP net income per share - basic

$

1.49

 

 

$

1.20

 

 

 

 

$

6.07

 

 

$

4.79

 

 

 

Non-GAAP net income per share - diluted

$

1.46

 

 

$

1.17

 

 

 

 

$

5.92

 

 

$

4.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP weighted-average shares used to compute net income per share - basic

 

199

 

 

 

195

 

 

 

 

 

198

 

 

 

193

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP weighted-average shares used to compute net income per share - diluted

 

204

 

 

 

202

 

 

 

 

 

203

 

 

 

202

 

 

 

Effects of in-the-money portion of convertible senior notes(4)

 

(1

)

 

 

(1

)

 

 

 

 

 

 

 

(2

)

 

 

Non-GAAP weighted-average shares used to compute net income per share - diluted

 

203

 

 

 

201

 

 

 

 

 

203

 

 

 

200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow:

 

 

 

 

 

 

 

 

 

 

 

GAAP net cash provided by operating activities

$

844

 

 

$

685

 

 

 

 

$

2,191

 

 

$

1,786

 

 

 

Purchases of property and equipment

 

(100

)

 

 

(134

)

 

 

 

 

(392

)

 

 

(419

)

 

 

Repayments of convertible senior notes attributable to debt discount

 

 

 

 

13

 

 

 

 

 

15

 

 

 

82

 

 

 

Business combination and other related costs

 

 

 

 

 

 

 

 

 

53

 

 

 

 

 

 

Non-GAAP free cash flow

$

744

 

 

$

564

 

 

 

 

$

1,867

 

 

$

1,449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow margin:

 

 

 

 

 

 

 

 

 

 

 

GAAP net cash provided by operating activities as % of total revenues

 

52

%

 

 

55

%

 

 

 

 

37

%

 

 

39

%

 

 

Purchases of property and equipment as % of total revenues

 

(6

%)

 

 

(11

%)

 

 

 

 

(7

%)

 

 

(9

%)

 

 

Repayments of convertible senior notes attributable to debt discount as % of total revenues

 

%

 

 

1

%

 

 

 

 

%

 

 

2

%

 

 

Business combination and other related costs as % of total revenues

 

0

%

 

 

%

 

 

 

 

1

%

 

 

%

 

 

Non-GAAP free cash flow margin

 

46

%

 

 

45

%

 

 

 

 

32

%

 

 

32

%

 

 

(1)

Non-GAAP 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)

Non-GAAP cRPO, 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)

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)

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.



Note: Numbers are rounded for presentation purposes and may not foot.

ServiceNow, Inc.

Reconciliation of Non-GAAP Financial Guidance

 

 

Three Months Ended

 

 

 

March 31, 2022

 

March 31, 2021

 

Growth Rates

 

 

 

 

 

 

GAAP subscription revenues

$1,610 - $1,615 million

 

$1,293 million

 

25%

 

 

 

 

 

 

Effects of foreign currency rate fluctuations

$35 million

 

 

 

2.5%

 

 

 

 

 

 

Non-GAAP subscription revenues(1)

$1,645 - $1,650 million

 

 

 

27.5%

 

 

 

 

 

 

 

 

 

 

 

 

cRPO growth rate

28%

 

 

 

 

 

 

 

 

 

 

Effects of foreign currency rate fluctuations

1.5%

 

 

 

 

 

 

 

 

 

 

Non-GAAP cRPO growth rate(2)

29.5%

 

 

 

 

 

 

 

 

 

 

GAAP operating margin

4%

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense as % of total revenues

20%

 

 

 

 

 

 

 

 

 

 

Amortization of purchased intangibles as % of total revenues

1%

 

 

 

 

 

 

 

 

 

 

Business combination and other related costs as % of total revenues

0%

 

 

 

 

 

 

 

 

 

 

Non-GAAP operating margin

25%

 

 

 

 

 

 

 

 

 

 

GAAP weighted-average shares used to compute net income per share - diluted

204 million

 

 

 

 

 

 

 

 

 

 

Effects of in-the-money portion of convertible senior notes(3)

(1) million

 

 

 

 

 

 

 

 

 

 

Non-GAAP weighted-average shares used to compute net income per share - diluted

203 million

 

 

 

 

 

Twelve Months Ended

 

 

 

December 31, 2022

 

December 31, 2021

 

Growth Rates

 

 

 

 

 

 

GAAP subscription revenues

$7,020 - $7,040 million

 

$5,573 million

 

26%

 

 

 

 

 

 

Effects of foreign currency rate fluctuations

$110 million

 

 

 

2%

 

 

 

 

 

 

Non-GAAP subscription revenues (1)

$7,130 - $7,150 million

 

 

 

28%

 

 

 

 

 

 

GAAP subscription gross margin

83%

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense as % of subscription revenues

2%

 

 

 

 

 

 

 

 

 

 

Amortization of purchased intangibles as % of subscription revenues

1%

 

 

 

 

 

 

 

 

 

 

Non-GAAP subscription margin

86%

 

 

 

 

 

 

 

 

 

 

GAAP operating margin

5%

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense as % of total revenues

19%

 

 

 

 

 

 

 

 

 

 

Amortization of purchased intangibles as % of total revenues

1%

 

 

 

 

 

 

 

 

 

 

Business combination and other related costs as % of total revenues

0%

 

 

 

 

 

 

 

 

 

 

Non-GAAP operating margin

25%

 

 

 

 

 

 

 

 

 

 

GAAP net cash provided by operating activities as % of total revenues

39%

 

 

 

 

 

 

 

 

 

 

Purchases of property and equipment as % of total revenues

(8%)

 

 

 

 

 

 

 

 

 

 

Repayments of convertible senior notes attributable to debt discount as % of total revenues

0%

 

 

 

 

 

 

 

 

 

 

Business combination and other related costs as % of total revenues

0%

 

 

 

 

 

 

 

 

 

 

Non-GAAP free cash flow margin

31%

 

 

 

 

 

 

 

 

 

 

GAAP weighted-average shares used to compute net income per share - diluted

204 million

 

 

 

 

 

 

 

 

 

 

Effects of in-the-money portion of convertible senior notes(3)

0 million

 

 

 

 

 

 

 

 

 

 

Non-GAAP weighted-average shares used to compute net income per share - diluted

204 million

 

 

 

 

(1)

Non-GAAP revenues and the corresponding growth rates are derived by applying the average exchange rates in effect during the comparison period rather than the exchange rates for the guidance period.

(2)

Non-GAAP cRPO growth rate is 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)

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.

 

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 LosAltos.com & California Media Partners, LLC. All rights reserved.