BusinessWire

ServiceNow Reports Fourth Quarter and Full-Year 2019 Financial Results

  • Subscription revenues of $899 million in Q4 2019, representing 35% year-over-year growth, 36% adjusted for foreign currency exchange rates
  • 76 transactions over $1 million in net new annual contract value in Q4 2019, representing 49% year-over-year growth
  • 892 total customers with over $1 million in annual contract value, representing 32% year-over-year growth

SANTA CLARA, Calif.--(BUSINESS WIRE)--ServiceNow (NYSE: NOW), the leading digital workflow company making work, work better for people, today announced financial results for its fourth quarter and year ended December 31, 2019, with subscription revenues of $899 million in Q4 2019, representing 35% year-over-year growth, 36% adjusted for foreign currency exchange rates.


During the fourth quarter, ServiceNow closed 76 transactions with more than $1 million in net new annual contract value (ACV), representing 49% year-over-year growth. The company closed the year with 892 total customers with more than $1 million in ACV, representing 32% year-over-year growth in customers.

“ServiceNow beat the high end of guidance for Q4, ending the year very strong,” said ServiceNow President and CEO Bill McDermott. “In Q4, we saw record deals and broad expansion of the Now Platform. ServiceNow is orchestrating what every company wants - workflows that create great experiences. Digital transformation is driving our momentum as customers across industries rush to embrace the simplicity that ServiceNow enables. We are proud to make work, work better for people.”

“I’m thrilled to be a part of ServiceNow, where we are committed to delivering world-class outcomes for our customers and strong results for our shareholders - as evidenced by our accomplishments in Q4,” said Gina Mastantuono, ServiceNow CFO. “Looking ahead, we remain focused on driving sustainable top-line growth as we look to scale our business to $10 billion in revenue and beyond.”

Fourth Quarter 2019 GAAP and NonGAAP Results:

The following table summarizes our financial results for the fourth quarter 2019:

 

Fourth Quarter 2019

GAAP Results

Fourth Quarter 2019 Non-GAAP Results(1)

 

Amount
($ millions)

Year/Year
Growth (%)

Amount
($ millions)

Year/Year
Growth (%)

Adjusted

Amount
($ millions)(2)

Adjusted

Year/Year

Growth (%)

Subscription revenues

$899.2

35%

 

 

$907.0

36%

Professional services and other revenues

$52.6

7%

 

 

$53.3

8%

Total revenues

$951.8

33%

 

 

$960.4

34%

 

 

 

 

 

 

 

Subscription billings

 

 

$1,297.8

36%

$1,303.4

37%

Professional services and other billings

 

 

$60.7

(1%)

$61.4

1%

Total billings

 

 

$1,358.5

34%

$1,364.8

35%

 

 

 

 

 

 

 

 

Amount
($ millions)

Margin (%)

Amount
($ millions)

Margin (%)

 

 

Subscription gross profit

$751.0

84%

$777.2

86%

 

 

Professional services and other gross profit (loss)

($10.6)

(20%)

$0.7

1%

 

 

Total gross profit

$740.3

78%

$777.9

82%

 

 

Income from operations

$28.5

3%

$209.6

22%

 

 

Net cash provided by operating activities

$421.2

44%

 

 

 

 

Free cash flow

 

 

$342.2

36%

 

 

 

 

 

 

 

 

 

 

Amount
($ millions)

Earnings per

Basic/Diluted

Share ($)

Amount
($ millions)

Earnings per

Basic/Diluted

Share ($)

 

 

Net income(3)

$598.7

$3.17 / $3.03

$186.9

$0.99 / $0.96

 

 

(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 adjusted subscription revenues, professional services and other revenues, total revenues and 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.

(3)

Fourth quarter 2019 GAAP net income was impacted by a $574 million one-time income tax benefit from the release of a valuation allowance on our deferred tax assets.

Note: Numbers rounded for presentation purposes.

Full-Year 2019 GAAP and NonGAAP Results:

The following table summarizes our financial results for the full-year 2019:

 

Full-Year 2019

GAAP Results

Full-Year 2019 Non-GAAP Results(1)

 

Amount
($ millions)

Year/Year
Growth (%)

Amount
($ millions)

Year/Year
Growth (%)

Adjusted Amount
($ millions)(2)

Adjusted

Year/Year

Growth (%)

Subscription revenues

$3,255.1

34%

 

 

$3,312.6

37%

Professional services and other revenues

$205.4

10%

 

 

$210.2

12%

Total revenues

$3,460.4

33%

 

 

$3,522.8

35%

 

 

 

 

 

 

 

Subscription billings

 

 

$3,788.3

31%

$3,850.0

34%

Professional services and other billings

 

 

$213.9

3%

$218.7

5%

Total billings

 

 

$4,002.2

30%

$4,068.7

32%

 

 

 

 

 

 

 

 

Amount
($ millions)

Margin (%)

Amount
($ millions)

Margin (%)

 

 

Subscription gross profit

$2,705.4

83%

$2,802.3

86%

 

 

Professional services and other gross profit (loss)

($41.6)

(20%)

$1.5

1%

 

 

Total gross profit

$2,663.8

77%

$2,803.8

81%

 

 

Income from operations

$42.1

1%

$739.5

21%

 

 

Net cash provided by operating activities

$1,236.0

36%

 

 

 

 

Free cash flow

 

 

$971.1

28%

 

 

 

 

 

 

 

 

 

 

Amount
($ millions)

Earnings per

Basic/Diluted

Share ($)

Amount
($ millions)

Earnings per

Basic/Diluted

Share ($)

 

 

Net income(3)

$626.7

$3.36 / $3.18

$646.3

$3.47 / $3.32

 

 

(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 adjusted subscription revenues, professional services and other revenues, total revenues and 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.

(3)

Full-year 2019 GAAP net income was impacted by a $574 million one-time income tax benefit from the release of a valuation allowance on our deferred tax assets.

Note: Numbers rounded for presentation purposes.

Financial Outlook

Our guidance includes GAAP and non-GAAP financial measures.

The following table summarizes our guidance for the first quarter 2020:

 

First Quarter 2020

GAAP Guidance

First Quarter 2020 Non-GAAP Guidance(1)

 

Amount
($ millions)(2)

Year/Year
Growth (%)

Amount
($ millions)(2)

Year/Year
Growth (%)

Adjusted

Amount
($ millions)(3)

Adjusted

Year/ Year

Growth (%)

Subscription revenues

$975 - $980

32%

 

 

$978 - $983

32% - 33%

Subscription billings

 

 

$1,040 - $1,045

28% - 29%

$1,042 - $1,047

29%

 

 

 

 

 

 

 

 

 

 

 

Margin (%)

 

 

Income from operations

 

 

 

22%

 

 

 

 

 

 

 

 

 

 

 

 

Amount
(millions)

 

 

 

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

 

 

195

 

 

 

(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 and non-GAAP subscription billings is based on foreign exchange rates as of December 31, 2019 for entities reporting in currencies other than U.S. Dollars.

(3)

Non-GAAP adjusted subscription revenues are adjusted for constant currency. Non-GAAP adjusted subscription billings are adjusted for constant currency and constant billings duration. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Guidance” for a reconciliation of GAAP to non-GAAP measures.

The following table summarizes our guidance for full-year 2020:

 

Full-Year 2020

GAAP Guidance

Full-Year 2020 Non-GAAP Guidance(1)

 

Amount
($ millions)(2)

Year/Year
Growth (%)

Amount
($ millions)(2)

Year/Year
Growth (%)

Adjusted

Amount
($ millions)(3)

Adjusted

Year/ Year

Growth (%)

Subscription revenues

$4,220 - $4,240

30%

 

 

$4,210 - $4,230

29% - 30%

Subscription billings

 

 

$4,805 - $4,825

27%

$4,807 - $4,827

27%

 

 

 

 

 

 

 

 

 

 

 

Margin (%)

 

 

Subscription gross profit

 

 

 

86%

 

 

Income from operations

 

 

 

22%

 

 

Free cash flow

 

 

 

29%

 

 

 

 

 

 

 

 

 

 

 

 

Amount
(millions)

 

 

 

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

 

 

196

 

 

 

(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 and non-GAAP subscription billings for the future quarters included in our full-year 2020 guidance are based on foreign exchange rates as of December 31, 2019 for entities reporting in currencies other than U.S. Dollars.

(3)

Non-GAAP adjusted subscription revenues are adjusted for constant currency. Non-GAAP adjusted subscription billings are adjusted for constant currency and constant billings duration. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Guidance” for a reconciliation of GAAP to non-GAAP measures.

Conference Call Details

The conference call will begin at 2 p.m. Pacific Time (22:00 GMT) on January 29, 2020. Interested parties may listen to the call by dialing (877) 824‑2843 (passcode: 6598983), or if outside North America, by dialing (647) 689‑5665 (passcode: 6598983). Individuals may access the live teleconference from this webcast link:

https://event.on24.com/wcc/r/2150754/43377D81BB1A56781828BB38CFDBC372

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) 585‑8367 (passcode: 6598983), or if outside North America, by dialing (416) 621‑4642 (passcode: 6598983).

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at http://investors.servicenow.com.

Statement Regarding Use of NonGAAP 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 Q4 2018, the average exchange rates in effect for our major currencies were 1 USD to 0.8763 Euros and 1 USD to 0.7775 British Pound Sterling (GBP)), rather than the actual average exchange rates in effect during the current period (for Q4 2019, the average exchange rates in effect for our major currencies were 1 USD to 0.9034 Euros and 1 USD 0.7771 GBP). Similarly, in our guidance, we apply the average exchange rates in effect during the comparison period rather than the exchange rates for the guidance period. We believe the presentation of revenues adjusted for constant currency facilitates the comparison of revenues year-over-year.
  • Billings and Adjusted billings. We believe billings is a useful leading indicator regarding the performance of our business. 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 or guidance 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.
  • 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, the related income tax effect of these adjustments, and the one-time income tax benefit from the release of a valuation allowance on the deferred tax assets. 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 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 and repayments of convertible senior notes attributable to debt discount, 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 and guidance.

Use of ForwardLooking 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) our ability to compete successfully against existing and new competitors, (ii) our ability to comply with privacy laws, data transfer restrictions, and other foreign and domestic standards related to data and the Internet, (iii) our ability to predict, prepare for and respond promptly to rapidly evolving technological, market and customer developments, (iv) errors, interruptions, delays, or security breaches in or of our service or datacenters, (v) 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, (vi) our ability to develop and gain customer acceptance of new and improved products and services, including those acquired through strategic transactions, and (vii) material changes in the value of foreign currencies relative to the U.S. Dollar.

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, 2019 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, 2019.

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.

© 2020 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 thousands, except per share data)

(unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

2019

 

December 31,

2018

 

December 31,

2019

 

December 31,

2018

Revenues:

 

 

 

 

 

 

 

Subscription

$

899,194

 

 

$

666,139

 

 

$

3,255,079

 

 

$

2,421,313

 

Professional services and other

52,580

 

 

49,302

 

 

205,358

 

 

187,503

 

Total revenues

951,774

 

 

715,441

 

 

3,460,437

 

 

2,608,816

 

Cost of revenues (1):

 

 

 

 

 

 

 

Subscription

148,244

 

 

113,503

 

 

549,642

 

 

417,421

 

Professional services and other

63,209

 

 

54,659

 

 

247,003

 

 

205,237

 

Total cost of revenues

211,453

 

 

168,162

 

 

796,645

 

 

622,658

 

Gross profit

740,321

 

 

547,279

 

 

2,663,792

 

 

1,986,158

 

Operating expenses (1):

 

 

 

 

 

 

 

Sales and marketing

416,005

 

 

319,163

 

 

1,534,284

 

 

1,203,056

 

Research and development

202,328

 

 

148,662

 

 

748,369

 

 

529,501

 

General and administrative

93,476

 

 

79,176

 

 

339,016

 

 

296,027

 

Total operating expenses

711,809

 

 

547,001

 

 

2,621,669

 

 

2,028,584

 

Income (loss) from operations

28,512

 

 

278

 

 

42,123

 

 

(42,426

)

Interest expense

(8,475

)

 

(8,938

)

 

(33,283

)

 

(52,733

)

Interest income and other income (expense), net

14,149

 

 

10,615

 

 

58,345

 

 

56,135

 

Income (loss) before income taxes

34,186

 

 

1,955

 

 

67,185

 

 

(39,024

)

Benefit from income taxes

(564,538

)

 

(5,060

)

 

(559,513

)

 

(12,320

)

Net income (loss)

$

598,724

 

 

$

7,015

 

 

$

626,698

 

 

$

(26,704

)

Net income (loss) per share - basic

$

3.17

 

 

$

0.04

 

 

$

3.36

 

 

$

(0.15

)

Net income (loss) per share - diluted

$

3.03

 

 

$

0.04

 

 

$

3.18

 

 

$

(0.15

)

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

189,042

 

 

179,764

 

 

186,466

 

 

177,846

 

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

197,843

 

 

190,662

 

 

197,223

 

 

177,846

 

 
(1) Includes stock-based compensation as follows:
 

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

2019

 

December 31,

2018

 

December 31,

2019

 

December 31,

2018

Cost of revenues:

 

 

 

 

 

 

 

Subscription

$

18,709

 

 

$

12,134

 

 

$

72,728

 

 

$

48,738

 

Professional services and other

11,374

 

 

8,506

 

 

43,123

 

 

32,816

 

Sales and marketing

68,337

 

 

58,762

 

 

268,408

 

 

228,045

 

Research and development

50,562

 

 

37,298

 

 

194,821

 

 

135,203

 

General and administrative

21,069

 

 

25,944

 

 

83,115

 

 

99,151

 

ServiceNow, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

December 31,

2019

 

December 31,

2018

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

775,778

 

 

$

566,204

 

Short-term investments

915,317

 

 

931,718

 

Accounts receivable, net

835,279

 

 

574,810

 

Current portion of deferred commissions

175,039

 

 

139,890

 

Prepaid expenses and other current assets

125,488

 

 

132,071

 

Total current assets

2,826,901

 

 

2,344,693

 

Deferred commissions, less current portion

333,448

 

 

282,490

 

Long-term investments

1,013,332

 

 

581,856

 

Property and equipment, net (1)

468,085

 

 

347,216

 

Operating lease right-of-use assets (1)

402,428

 

 

 

Intangible assets, net

143,850

 

 

100,582

 

Goodwill

156,756

 

 

148,845

 

Deferred tax assets

599,633

 

 

20,642

 

Other assets

77,997

 

 

52,816

 

Total assets

$

6,022,430

 

 

$

3,879,140

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

52,960

 

 

$

30,733

 

Accrued expenses and other current liabilities (1)

461,403

 

 

330,246

 

Current portion of deferred revenue

2,185,754

 

 

1,651,594

 

Current portion of operating lease liabilities (1)

52,668

 

 

 

Total current liabilities

2,752,785

 

 

2,012,573

 

Deferred revenue, less current portion

40,038

 

 

38,597

 

Operating lease liabilities, less current portion (1)

383,221

 

 

 

Convertible senior notes, net

694,981

 

 

661,707

 

Other long-term liabilities (1)

23,464

 

 

55,064

 

Stockholders’ equity (1)

2,127,941

 

 

1,111,199

 

Total liabilities and stockholders’ equity

$

6,022,430

 

 

$

3,879,140

 

(1)

We adopted Topic 842 using the modified retrospective method as of January 1, 2019 and elected the transition option that allows us not to restate the comparative periods in our financial statements in the year of adoption.

ServiceNow, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

2019

 

December 31,

2018

 

December 31,

2019

 

December 31,

2018

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income (loss)

$

598,724

 

 

$

7,015

 

 

$

626,698

 

 

$

(26,704

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

72,331

 

 

43,112

 

 

252,114

 

 

149,604

 

Amortization of deferred commissions

45,788

 

 

35,991

 

 

168,014

 

 

143,358

 

Amortization of debt discount and issuance costs

8,475

 

 

8,938

 

 

33,283

 

 

52,733

 

Stock-based compensation

170,051

 

 

142,644

 

 

662,195

 

 

543,953

 

Deferred income taxes

(572,923

)

 

(1,883

)

 

(575,765

)

 

(34,180

)

Realized gain on marketable equity securities

 

 

 

 

 

 

(19,257

)

Repayments of convertible senior notes attributable to debt discount

 

 

(43,716

)

 

 

 

(145,349

)

Other

(4,300

)

 

1,675

 

 

(8,921

)

 

6,177

 

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

 

 

 

 

 

 

 

Accounts receivable

(288,166

)

 

(153,602

)

 

(259,835

)

 

(146,148

)

Deferred commissions

(97,296

)

 

(86,861

)

 

(255,605

)

 

(239,382

)

Prepaid expenses and other assets

(4,338

)

 

(21,405

)

 

(29,907

)

 

(19,886

)

Accounts payable

(8,733

)

 

(9,815

)

 

21,355

 

 

(4,757

)

Deferred revenue

401,794

 

 

294,798

 

 

537,249

 

 

468,856

 

Accrued expenses and other liabilities

99,804

 

 

72,721

 

 

65,097

 

 

82,071

 

Net cash provided by operating activities

421,211

 

 

289,612

 

 

1,235,972

 

 

811,089

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of property and equipment

(79,003

)

 

(88,113

)

 

(264,892

)

 

(224,462

)

Business combinations, net of cash and restricted cash acquired

(7,414

)

 

(12,500

)

 

(7,414

)

 

(37,440

)

Purchases of other intangibles

(35,329

)

 

(10,800

)

 

(72,689

)

 

(24,400

)

Purchases of investments

(339,976

)

 

(468,784

)

 

(1,595,667

)

 

(1,295,782

)

Sales of investments

2,457

 

 

 

 

33,503

 

 

39,975

 

Maturities of investments

258,840

 

 

333,058

 

 

1,159,247

 

 

1,194,687

 

Realized gains on derivatives not designated as hedging instruments, net

1,693

 

 

 

 

23,435

 

 

 

Net cash used in investing activities

(198,732

)

 

(247,139

)

 

(724,477

)

 

(347,422

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Repayments of convertible senior notes attributable to principal

(9

)

 

(118,125

)

 

(9

)

 

(429,645

)

Proceeds from employee stock plans

2,641

 

 

3,723

 

 

107,868

 

 

104,160

 

Taxes paid related to net share settlement of equity awards

(78,913

)

 

(59,742

)

 

(409,715

)

 

(281,010

)

Payments on financing obligations

 

 

(177

)

 

 

 

(933

)

Net cash used in financing activities

(76,281

)

 

(174,321

)

 

(301,856

)

 

(607,428

)

Foreign currency effect on cash, cash equivalents and restricted cash

6,253

 

 

(5,937

)

 

(186

)

 

(15,530

)

Net increase (decrease) in cash, cash equivalents and restricted cash

152,451

 

 

(137,785

)

 

209,453

 

 

(159,291

)

Cash, cash equivalents and restricted cash at beginning of period

625,540

 

 

706,323

 

 

568,538

 

 

727,829

 

Cash, cash equivalents and restricted cash at end of period

$

777,991

 

 

$

568,538

 

 

$

777,991

 

 

$

568,538

 


Contacts

Media Contact:
Sara Day
650.336.3123
press@servicenow.com

Investor Contact:
Kendall Toyne
408.831.6040
ir@servicenow.com


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