What are non-GAAP financial measures, and why does ServiceNow use them?

Non-GAAP financial measures are financial calculations that exclude certain items from GAAP (Generally Accepted Accounting Principles) results. ServiceNow uses them, such as excluding stock-based compensation expense, to provide investors with supplemental information that management believes offers a better understanding of the company's core operating results and facilitates comparisons across periods.

How does ServiceNow define 'billings'?

ServiceNow defines billings as total revenue plus the change in total deferred revenue. The company believes this metric provides investors with useful supplemental information about the performance of its business and helps them understand sales volumes.

Does this report contain forward-looking statements?

This specific 8-K filing itself does not contain forward-looking statements as it primarily reports historical financial results. However, the referenced press release (Exhibit 99.1) may contain forward-looking statements, which are typically subject to risks and uncertainties as disclosed within that document.

NOW 8-K: Earnings & Results

Q: What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to report ServiceNow's financial results for the first quarter ended March 31, 2013, which were announced via a press release filed as Exhibit 99.1.

Summary

This 8-K filing from ServiceNow, Inc. (NOW), dated April 24, 2013, primarily serves to announce the company's financial results for the first quarter ended March 31, 2013. The report references a press release (Exhibit 99.1) that details these results, including both GAAP and non-GAAP financial measures. Investors should note that this information is furnished and not deemed "filed" under the Securities Exchange Act. The company emphasizes its use of non-GAAP financial measures such as gross margins, operating margins, net income, earnings per share, free cash flow, and billings. ServiceNow states that these non-GAAP measures, particularly those excluding stock-based compensation expense, are intended to provide supplemental insights into the company's core operating performance and facilitate comparisons across reporting periods. Management believes these measures offer a clearer view of operational efficiency and cash generation, aiding investors in assessing the company's performance and potential.

Key Highlights

1ServiceNow announced its financial results for the first quarter ended March 31, 2013, via a press release filed as Exhibit 99.1.
2The filing is an 8-K report, indicating a significant event, specifically the release of quarterly financial results.
3The company provided both GAAP and non-GAAP financial results, with a strong emphasis on the supplemental nature of non-GAAP metrics.
4Non-GAAP measures highlighted include gross margins, operating margins, net income/loss, EPS, free cash flow, and billings.
5ServiceNow explained its rationale for using non-GAAP figures, particularly excluding stock-based compensation, to offer a clearer view of core operating performance.
6Free cash flow is defined as GAAP net cash from operations less capital expenditures, presented as a key metric for assessing cash available for investment.
7Billings, calculated as revenue plus change in deferred revenue, is presented as a useful indicator of sales volume and business performance.

ServiceNow, Inc. 8-K Report, Financial Results (Apr 24, 2013)

Summary

Key Highlights

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