Summary
ServiceNow, Inc. (NOW) filed an 8-K on August 1, 2012, to report its financial results for the three months ended June 30, 2012. The filing primarily consists of a press release (Exhibit 99.1) detailing these results. Investors should note that this report focuses on the company's second quarter 2012 performance. The company also outlined its use of non-GAAP financial measures, which exclude stock-based compensation expense and adjustments for capitalized software, arguing that these provide a clearer view of core operating results and facilitate comparisons across periods. Additionally, ServiceNow explained its non-GAAP metrics for free cash flow and billings, emphasizing their importance for understanding operational performance and cash availability.
Key Highlights
- 1ServiceNow announced its financial results for the second quarter ended June 30, 2012, via an 8-K filing.
- 2The filing includes a press release (Exhibit 99.1) containing detailed financial information for the quarter.
- 3The company utilizes and explains non-GAAP financial measures, including gross and operating margins, net income/loss, EPS, free cash flow, and billings.
- 4Non-GAAP adjustments exclude stock-based compensation expense and adjustments for capitalized software to provide a view of core operating results.
- 5Free cash flow is defined as GAAP net cash provided by operating activities less purchases of property and equipment.
- 6Billings are calculated as revenue plus the change in total deferred revenue, intended to reflect sales volumes and business performance.