Summary
ServiceNow, Inc. (NOW) reported solid financial results for the first quarter ended March 31, 2021. Total revenues grew by 30% year-over-year to $1.36 billion, driven primarily by a 30% increase in subscription revenues to $1.29 billion, reflecting continued strong demand for its digital workflow platform. The company demonstrated robust operational efficiency, with a total gross profit margin of 78% and an increase in net income to $82 million from $48 million in the prior year. Cash flow from operations showed significant strength, increasing to $727 million from $492 million, resulting in free cash flow of $620 million. The company also reported growth in its customer base, with the number of customers with an Annual Contract Value (ACV) greater than $1 million increasing to 1,146. The company ended the quarter with a strong liquidity position, holding $3.5 billion in cash and cash equivalents and short-term investments.
Financial Highlights
51 data points| Revenue | $1.36B |
| Cost of Revenue | $299.00M |
| Gross Profit | $1.06B |
| R&D Expenses | $314.00M |
| Operating Expenses | $964.00M |
| Operating Income | $97.00M |
| Interest Expense | $7.00M |
| Net Income | $82.44M |
| EPS (Basic) | $0.08 |
| EPS (Diluted) | $0.08 |
| Shares Outstanding (Basic) | 983.12M |
| Shares Outstanding (Diluted) | 1.01B |
Key Highlights
- 1Total revenues increased by 30% to $1.36 billion, driven by subscription revenue growth.
- 2Subscription revenues rose 30% to $1.29 billion, indicating strong demand for ServiceNow's platform.
- 3Net income grew to $82 million, a significant increase from $48 million in the prior year.
- 4Cash flow from operating activities increased by 48% to $727 million.
- 5Free cash flow rose by 52% to $620 million.
- 6The number of customers with ACV greater than $1 million increased by 23% to 1,146.
- 7The company maintained a strong liquidity position with $3.5 billion in cash, cash equivalents, and short-term investments.