Summary
ServiceNow, Inc. filed an 8-K on January 28, 2015, to report its financial results for the fourth quarter and full year ended December 31, 2014. The filing primarily consists of a press release containing these results. Investors should note that the company provided both GAAP and non-GAAP financial measures, including gross margins, operating margins, net income, earnings per share, free cash flow, and billings. ServiceNow emphasizes that these non-GAAP measures are intended to supplement and facilitate the analysis of its core operating performance and should be considered alongside GAAP results. The company also highlights its definition of "billings" as revenue plus the change in total deferred revenue, a key metric for understanding sales volumes.
Key Highlights
- 1ServiceNow announced financial results for the three months and year ended December 31, 2014, via press release.
- 2The filing incorporates a press release (Exhibit 99.1) containing detailed financial results.
- 3The company provided both GAAP and non-GAAP financial measures for key performance indicators.
- 4Non-GAAP measures discussed include gross margins, operating margins, net income/loss, EPS, free cash flow, and billings.
- 5ServiceNow's management believes non-GAAP measures offer useful supplemental information for analyzing core operations and performance trends.
- 6Free cash flow is defined as GAAP net cash provided by operating activities less purchases of property and equipment.
- 7Billings are defined as revenue plus the change in total deferred revenue, intended to show sales volumes.