Summary
ServiceNow, Inc. (NOW) filed an 8-K on July 31, 2013, to report its financial results for the three months ended June 30, 2013. The filing primarily contains a press release detailing these results. Investors should note that the company utilizes and emphasizes non-GAAP financial measures, including gross margins, operating margins, net income, earnings per share, free cash flow, and billings, alongside GAAP results. Management believes these non-GAAP measures offer a clearer view of core operating performance and facilitate cross-period comparisons by excluding items like stock-based compensation and adjustments for capitalized software. Free cash flow is presented as a key metric for assessing the cash available for business investment and operations. Billings, calculated as revenue plus the change in deferred revenue, is highlighted as an indicator of sales volume and business performance. Investors are encouraged to review both GAAP and non-GAAP figures and their reconciliations to fully understand the company's financial health.
Key Highlights
- 1ServiceNow reported its Q2 2013 financial results via an 8-K filing on July 31, 2013.
- 2The company provided both GAAP and non-GAAP financial results, with a strong emphasis on non-GAAP metrics.
- 3Key non-GAAP metrics highlighted include gross margins, operating margins, net income, EPS, free cash flow, and billings.
- 4Non-GAAP adjustments exclude stock-based compensation expense and capitalized software adjustments to show core operating results.
- 5Free cash flow is presented as a non-GAAP measure to demonstrate cash available for investment and operations.
- 6Billings, defined as revenue plus the change in deferred revenue, is provided to illustrate sales volumes and business performance.
- 7Investors are urged to consider both GAAP and non-GAAP results and their reconciliations for a comprehensive understanding.