Actionable news
0
All posts from Actionable news
Actionable news in NOW: SERVICENOW Inc,

Servicenow Reports Financial Results For Third Quarter 2015

The following excerpt is from the company's SEC filing.

SANTA CLARA, Calif.--(BUSINESS WIRE)--October 21, 2015--ServiceNow® (NYSE:NOW), the enterprise cloud company, today announced the financial results for its third quarter 2015.

Third Quarter 2015 Results:

Revenues of $261.2 million, an increase of 46% year-over-year and 55% in constant currency.

GAAP net loss of $41.0 million, or a loss of $0.26 per basic and diluted share, compared to a GAAP net loss of $41.1 million, or a loss of $0.28 per basic and diluted share, in the third quarter of 2014.

Non- GAAP net income of $25.0 million, or income of $0.16 per basic share and $0.15 per diluted share, compared to a non-GAAP net income of $5.7 million, or income of $0.04 per basic share and $0.03 diluted share, in the third quarter of 2014.

Billings were $286.4 million, an increase of 38% year-over-year and 46% in constant currency.

Free cash flow was $42.3 million, an increase of 512% year-over-year.

For a reconciliation of these GAAP and non-GAAP financial measures, please see the table entitled “Results of Operations GAAP to Non-GAAP Reconciliation” included at the end of this release.

“We now count more than 30% of the Global 2000 as customers, an increase of 39 from the prior quarter,” said Frank Slootman, president and chief executive officer, ServiceNow. “Additionally, we now have 206 customers with annualized contract value in excess of $1 million, an increase of 62% year-over-year.”

“We continue to see customers increase their initial annualized contract value by greater than 50% on average every year,” said Michael Scarpelli, chief financial officer, ServiceNow. “In addition, we’re demonstrating more leverage in our business model as free cash flow exceeded third quarter guidance, and we expect our full year 2015 free cash flow to be north of $200 million.”

Financial Outlook:

The financial guidance discussed below is on a non-GAAP basis, except for revenues, and excludes stock-based compensation expense, amortization of purchased intangibles, and acquisition-related expenses. Please see the tables included at the end of this release for a reconciliation of these non-GAAP financial measures to the related GAAP financial measures. For the fourth quarter of 2015, we expect:

Total revenues between $277 and $282 million, representing year-over-year growth between 40% and 42%, and between 44% and 47% in constant currency. Our total fourth quarter revenue estimate consists of subscription revenues between $239 and $243 million, and professional services and other revenues between $38 and $39 million.

Billings between $370 and $375 million, representing year-over-year growth between 35% and 37%, and between 39% and 41% in constant currency.

Subscription gross margin of approximately 82%, professional services and other gross margin of approximately 15%, and overall gross margin of approximately 73%.

Operating margin of approximately 9%.

Free cash flow of approximately $60 million.

For the full year 2015, we expect:

Total revenues of approximately $1 billion, representing year-over-year growth of approximately 47%, and approximately 55% in constant currency.

Billings of approximately $1.2 billion, representing year-over-year growth of approximately 41%, and approximately 49% in constant currency.

Free cash flow of approximately $207 million.

Conference Call Details:

The conference call will begin at 2 p.m. Pacific Time (21:00 GMT) on Wednesday, Oct. 21, 2015. Interested parties may listen to the call by dialing 877.703.6105 (passcode: 79125980), or if outside North America, by dialing +1.857.244.7304 (passcode: 79125980). Individuals may access the live teleconference from the investor relations section of the ServiceNow website at

http://investors.servicenow.com

An audio replay of the conference call and webcast will be available three hours after its completion and will be accessible for 30 days. To hear the replay, interested parties may go to the investor relations section of the ServiceNow website or dial 888.286.8010 (passcode: 81146319), or if outside North America, by dialing +1.617.801.6888 (passcode: 81146319).

Statement regarding use of non-GAAP financial measures

We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Our financial measures under GAAP include foreign currency impact, stock-based compensation expense, the amortization of debt discount and issuance costs related to the convertible senior notes, amortization of purchased intangibles and acquisition-related expenses, and the related income tax effect of these adjustments. We believe the presentation of operating results that exclude these items provides useful supplemental information to investors and facilitates the analysis of our core operating results and comparison of operating results across reporting periods.

Free cash flow, which is a non-GAAP financial measure, is calculated as GAAP net cash provided by operating activities reduced by purchases of property and equipment. We believe information regarding free cash flow provides investors with an important perspective on the cash available to invest in our business and fund ongoing operations. However, our calculation of free cash flow may not be comparable to similar measures used by other companies.

Billings is calculated as revenue plus the change in total deferred revenue as presented on the statement of cash flows. We believe billings offers investors useful supplemental information regarding the performance of our business, and will help investors better understand the sales volumes and performance of our business.

We present constant currency information to provide a framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. To present this information, current period results for entities reporting in currencies other than U.S. Dollars are converted into U.S. Dollars at the exchange rates in effect during the prior period presented, rather...


More