Summary
ServiceNow, Inc. reported strong revenue growth in the third quarter of 2017, driven primarily by its subscription services. Total revenues increased by 39% year-over-year, reaching $498.2 million, with subscription revenues up 43% to $455.4 million. The company continues to expand its customer base, notably increasing the number of customers with an Annual Contract Value (ACV) greater than $1 million by 32% to 436. While the company is investing heavily in sales and marketing and research and development, leading to a net loss of $24.2 million for the quarter, it also demonstrated significant improvement in cash flow from operations, which rose to $458.0 million for the first nine months of the year. The company's liquidity remains strong with substantial cash and investments.
Financial Highlights
52 data points| Revenue | $492.37M |
| Cost of Revenue | $127.49M |
| Gross Profit | $364.89M |
| R&D Expenses | $98.47M |
| Operating Expenses | $368.80M |
| Operating Income | -$3.91M |
| Interest Expense | $16.57M |
| Net Income | -$22.18M |
| EPS (Basic) | $-0.03 |
| EPS (Diluted) | $-0.03 |
| Shares Outstanding (Basic) | 859.42M |
| Shares Outstanding (Diluted) | 859.42M |
Key Highlights
- 1Total revenues grew 39% year-over-year to $498.2 million for the three months ended September 30, 2017.
- 2Subscription revenues, the primary revenue driver, increased 43% year-over-year to $455.4 million.
- 3The number of customers with an Annual Contract Value (ACV) greater than $1 million increased by 32% to 436.
- 4Cash flow from operating activities was strong, totaling $458.0 million for the first nine months of 2017, a significant increase from $27.2 million in the prior year.
- 5The company reported a net loss of $24.2 million for the quarter, a decrease from $36.3 million in the same period last year, indicating improving profitability.
- 6Sales and marketing expenses increased by 36% to $227.0 million, reflecting continued investment in growth.