Summary
This 8-K filing from ServiceNow, Inc., dated October 22, 2014, announces the company's financial results for the third quarter ended September 30, 2014. The primary purpose of the filing is to furnish the press release containing these results as an exhibit. Investors should note that the company provides both GAAP and non-GAAP financial measures, with a particular emphasis on non-GAAP metrics like gross margins, operating margins, net income, EPS, free cash flow, and billings. Management believes these non-GAAP measures offer a clearer view of core operating performance and are useful for comparing results across periods and with other companies.
Key Highlights
- 1ServiceNow announced its third quarter financial results for the period ending September 30, 2014, via a press release filed with this 8-K.
- 2The company is providing both Generally Accepted Accounting Principles (GAAP) and non-GAAP financial results.
- 3Non-GAAP measures exclude items such as stock-based compensation, amortization of debt discount and intangibles, and acquisition-related expenses.
- 4Management asserts that non-GAAP results provide useful supplemental information for analyzing core operating performance and for period-over-period comparisons.
- 5Free cash flow, a non-GAAP metric, is defined as GAAP operating cash flow less capital expenditures.
- 6Billings, another non-GAAP metric, is calculated as revenue plus the change in total deferred revenue, intended to reflect sales volumes.
- 7The press release containing the detailed financial results is incorporated by reference as Exhibit 99.1.