8-KEarnings & ResultsExhibits & Filings

ServiceNow, Inc. 8-K Report, Financial Results (Aug 1, 2012)

Filed August 1, 2012For Securities:NOW

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.

Frequently Asked Questions

The main purpose of this 8-K filing is to report ServiceNow, Inc.'s financial results for the second quarter ended June 30, 2012, through an attached press release (Exhibit 99.1).

ServiceNow uses non-GAAP measures for gross margins, operating margins, net income/loss, EPS, free cash flow, and billings. They believe these measures, which exclude stock-based compensation expense and adjustments for capitalized software, provide useful supplemental information to investors by facilitating the analysis of core operating results and comparisons across periods.

ServiceNow defines billings as revenue plus the change in total deferred revenue. They believe this metric offers investors useful supplemental information regarding the performance of their business and helps in understanding sales volumes and overall business performance.

No, ServiceNow explicitly states that their non-GAAP measures are presented in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. They encourage investors to consider both GAAP and non-GAAP results, along with the reconciliation between them, for a full understanding of the business.