8-KEarnings & ResultsExhibits & Filings

ServiceNow, Inc. 8-K Report, Financial Results (Jan 27, 2016)

Filed January 27, 2016For Securities:NOW

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.

Frequently Asked Questions

The actual financial results are detailed in the press release dated January 27, 2016, which is included as Exhibit 99.1 to this 8-K filing. Investors should refer to that exhibit for specific revenue, profit, and other financial figures.

ServiceNow reports non-GAAP financial measures to provide supplemental information that they believe offers investors a clearer view of the company's core operating results and facilitates comparisons across reporting periods. These measures exclude items like foreign currency impacts, stock-based compensation, and amortization expenses, which can fluctuate and may not reflect the ongoing operational performance of the business.

Billings is a non-GAAP metric calculated as revenue plus the change in total deferred revenue. ServiceNow believes this metric offers investors useful supplemental information regarding the performance of their business and helps them better understand sales volumes and overall business performance.

No, the information in this 8-K filing, particularly the financial results announced via press release, is furnished under Item 2.02 and is not considered 'filed' for the purposes of Section 18 of the Securities Exchange Act of 1934. This means the company is not subject to the liabilities associated with Section 18 for this furnished information.