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.