8-KEarnings & ResultsExhibits & Filings

ServiceNow, Inc. 8-K Report, Financial Results (Oct 24, 2012)

Filed October 24, 2012For Securities:NOW

Summary

ServiceNow, Inc. (NOW) filed a Form 8-K on October 24, 2012, to report its third-quarter financial results for the period ended September 30, 2012. The filing primarily consists of a press release (Exhibit 99.1) detailing these results. The company emphasizes its use of non-GAAP financial measures, including gross margins, operating margins, net income, earnings per share, free cash flow, and billings, explaining their utility for investors in analyzing core operating performance and sales volumes. Investors should note that while GAAP results are provided, ServiceNow's management believes non-GAAP measures, which exclude items like stock-based compensation expense, offer a clearer view of the company's ongoing operations and comparability across periods. Free cash flow is defined as operating cash flow less capital expenditures, and billings are calculated as revenue plus the change in deferred revenue. The company encourages a thorough review of both GAAP and non-GAAP figures, along with the provided reconciliations, for a comprehensive understanding of its financial health and performance.

Key Highlights

  • 1ServiceNow announced its Q3 2012 financial results on October 24, 2012, via an 8-K filing.
  • 2The filing incorporates a press release detailing the Q3 2012 financial performance.
  • 3The company utilizes and explains several non-GAAP financial measures, including gross margin, operating margin, net income/loss, EPS, free cash flow, and billings.
  • 4Non-GAAP measures are presented to provide supplemental information and facilitate analysis of core operating results, excluding items like stock-based compensation.
  • 5Free cash flow is defined as GAAP net cash from operating activities minus purchases of property and equipment.
  • 6Billings are calculated as revenue plus the change in total deferred revenue, intended to reflect sales volumes.
  • 7ServiceNow encourages investors to review both GAAP and non-GAAP results and reconciliations for a full understanding.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce and provide details on ServiceNow's financial results for the third quarter ended September 30, 2012. It includes a press release containing these financial details.

Billings is a non-GAAP financial measure calculated as revenue plus the change in total deferred revenue. ServiceNow reports billings because management believes it offers investors useful supplemental information regarding the performance of the business and helps them better understand sales volumes.

ServiceNow presents non-GAAP financial measures, such as adjusted gross margin, operating margin, net income, and EPS, because management believes they provide useful supplemental information to investors. These measures help facilitate the analysis of the company's core operating results and improve comparability across reporting periods, particularly by excluding items like stock-based compensation expense.

In this filing, free cash flow is defined as a non-GAAP financial measure calculated as net cash provided by operating activities (as reported under GAAP) reduced by purchases of property and equipment.