Summary
This Form 8-K filing by ServiceNow, Inc. (NOW) on January 29, 2014, primarily serves to announce the company's financial results for the fourth quarter and full year ended December 31, 2013. The filing incorporates by reference a press release that details these results, providing investors with key performance indicators. Notably, the report emphasizes ServiceNow's use of non-GAAP financial measures, including gross margins, operating margins, net income, earnings per share, free cash flow, and billings. The company explains that these non-GAAP figures exclude items such as stock-based compensation and amortization of debt discount, which management believes offer a clearer view of core operational performance and facilitate year-over-year comparisons. Investors are encouraged to review both GAAP and non-GAAP results for a comprehensive understanding.
Key Highlights
- 1ServiceNow announced its financial results for the three months and year ended December 31, 2013.
- 2The company is providing investors with a press release (Exhibit 99.1) that details these financial results.
- 3ServiceNow utilizes and presents non-GAAP financial measures, including gross margins, operating margins, net income/loss, and earnings per share.
- 4Non-GAAP measures are presented to exclude items such as stock-based compensation expense and amortization of debt discount.
- 5The company believes these non-GAAP measures offer useful supplemental information for analyzing core operating results and comparing performance across periods.
- 6Free cash flow is presented as a non-GAAP measure, calculated as net cash from operations minus capital expenditures.
- 7Billings, calculated as revenue plus change in deferred revenue, is also provided as a supplemental non-GAAP measure to indicate sales volumes and business performance.