Summary
ServiceNow, Inc. (NOW) filed an 8-K on January 27, 2016, to report its financial results for the fourth quarter and full year ended December 31, 2015. The primary purpose of this filing was to disclose these results, which were detailed in an accompanying press release (Exhibit 99.1). While the 8-K itself does not contain the detailed financial figures, it confirms that the company is providing investors with its performance data. It also highlights ServiceNow's use of non-GAAP financial measures alongside GAAP, explaining their rationale for providing these supplemental metrics such as operating results excluding foreign currency impacts, stock-based compensation, and amortization expenses. The company emphasizes that these non-GAAP figures are intended to offer a clearer view of core operations and facilitate comparability, while also defining metrics like "billings" and "free cash flow" for investor analysis.
Key Highlights
- 1ServiceNow announced its financial results for the fourth quarter and full year ended December 31, 2015.
- 2The financial results were disclosed via a press release furnished as Exhibit 99.1 to the 8-K.
- 3The company utilizes and provides supplemental non-GAAP financial measures to offer investors a better understanding of its core operating performance.
- 4Key non-GAAP adjustments mentioned include foreign currency impact, stock-based compensation, amortization of debt discount and intangibles, and business combination expenses.
- 5ServiceNow defines and uses "billings" as a metric to indicate sales volume and business performance.
- 6The company also provides "free cash flow" and "free cash flow margin" as important perspectives on cash available for investment and operations.
- 7Constant currency information is presented to allow for analysis of business performance without the effect of foreign currency fluctuations.