Summary
ServiceNow, Inc.'s 2019 10-K filing highlights a year of robust revenue growth, with total revenues reaching $3.46 billion, a 33% increase year-over-year. The company continues to expand its customer base, particularly among large enterprises, with over 6,200 customers by the end of 2019, and no single customer accounting for more than 10% of revenue, indicating a diversified customer base. The core business remains subscription-based, demonstrating strong customer retention with a renewal rate of 98%. Financially, ServiceNow has transitioned to profitability, reporting net income of $626.7 million for 2019, a significant improvement from a net loss in the prior year, partly due to a substantial income tax benefit. The company also generated strong operating cash flow of $1.2 billion, underscoring its operational strength and ability to fund growth initiatives. Despite a competitive market, ServiceNow's investment in research and development and its comprehensive platform strategy, encompassing IT, employee, and customer workflows, position it for continued expansion.
Financial Highlights
54 data points| Revenue | $3.46B |
| Cost of Revenue | $796.00M |
| Gross Profit | $2.66B |
| R&D Expenses | $749.00M |
| Operating Expenses | $2.62B |
| Operating Income | $42.00M |
| Interest Expense | $33.00M |
| Net Income | $626.70M |
| EPS (Basic) | $0.67 |
| EPS (Diluted) | $0.64 |
| Shares Outstanding (Basic) | 932.33M |
| Shares Outstanding (Diluted) | 986.12M |
Key Highlights
- 1Strong Revenue Growth: Total revenues increased by 33% year-over-year to $3.46 billion in 2019.
- 2Growing Enterprise Customer Base: The company served approximately 6,200 enterprise customers by year-end 2019, with revenue diversified across many clients.
- 3Return to Profitability: ServiceNow reported a net income of $626.7 million in 2019, a significant turnaround from a net loss in 2018.
- 4Healthy Cash Flow Generation: Operating cash flow was robust at $1.2 billion for the year ended December 31, 2019.
- 5High Customer Retention: The renewal rate remained strong at 98%, indicating customer satisfaction and loyalty.
- 6Significant Investment in R&D: The company continued to invest heavily in research and development to enhance its platform and expand its offerings.
- 7Strategic Focus on Digital Workflows: ServiceNow's platform enables IT, Employee, and Customer workflows, supporting broad digital transformation initiatives for its clients.