UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-36325 NOW INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identificatio ...

Financial Data and Key Metrics Changes - First quarter revenue was $584 million, up 7% sequentially and up 23% year-over-year, driven by strong international growth of 28% [24][29] - Gross margins for Q1 2023 were 23.5%, down from recent highs but above the combined gross margin of 22.9% for 2021 and 2022 [3][24] - EBITDA for the first quarter was $47 million, representing 8% of revenue, and up 68% year-over-year [24][30] - Free cash flow consumption was $11 million in Q1 as the company invested in working capital and capital expenditures [24][30] Business Line Data and Key Metrics Changes - U.S. revenue totaled $427 million, a 3% increase sequentially and a 28% increase year-over-year [29][30] - Canada revenue was $83 million, up 11% sequentially but relatively flat year-over-year [29][30] - International revenue reached $74 million, a sequential increase of 28% [27][29] Market Data and Key Metrics Changes - The U.S. energy centers contributed approximately 74% of total U.S. revenue, while U.S. process solutions contributed 26% [29] - The company noted a 2% decline in U.S. rig counts and completions, impacting overall market conditions [49][58] - Increased demand for renewable natural gas (RNG) and biodiesel projects was highlighted as a growth opportunity [51][87] Company Strategy and Development Direction - The company is focused on revenue synergies from recent acquisitions, aiming to grow its business rather than seeking cost savings [5][48] - Strategic investments are being made in upgrading facilities and expanding the rental fleet for Flex Flow and EcoVapor businesses [31][48] - The company aims to generate $100 million in cash from operations in 2023 while maintaining a disciplined approach to capital allocation [31][57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the international segment's strong growth and the potential for market share gains despite a challenging U.S. market [10][58] - The company anticipates a low single-digit percentage increase in sequential revenues for Q2 2023, with year-over-year growth expected to be around 10% [12][58] - Management acknowledged headwinds from weather-related activity declines and lower oil and gas prices but remains focused on executing their strategy [10][58] Other Important Information - The company remains debt-free with a cash position of $168 million and total liquidity of $555 million [30][56] - The share repurchase program is ongoing, with $36 million spent in Q1, totaling $43 million repurchased to date [57][58] - The company is actively pursuing additional acquisitions to enhance its market position and expand its geographic reach [48][74] Q&A Session Summary Question: Can you elaborate on the second quarter outlook and expected gross margin changes? - Management confirmed expectations of slight gross margin erosion due to seasonal impacts and geographic mix, particularly from Canada [34][35] Question: What are the prospects for organic growth in the current market? - Management indicated that organic growth is expected primarily in the U.S., driven by new customer acquisitions and market share gains [63][77] Question: How is the company diversifying its international business? - The company has diversified its international operations to focus more on land-based projects and capital projects associated with national and international oil companies [78] Question: What is the outlook for the Process Solutions segment? - Management aims for the Process Solutions segment to grow to one-third of U.S. revenue, emphasizing its higher margins and revenue synergies from acquisitions [84][85]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-36325 NOW INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identificati ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2022 was $547 million, down 5% or $30 million from Q3, but up 27% year-over-year, with full-year revenue reaching $2.1 billion, an increase of 31% from 2021 [18][101] - Net income for Q4 was $32 million or $0.28 per diluted share, with non-GAAP net income at $29 million or $0.25 per diluted share [26] - EBITDA for Q4 was $47 million, representing 8.6% of revenue, while full-year EBITDA was $175 million or 8.2% of revenue, marking a significant improvement from previous years [73][112] Business Line Data and Key Metrics Changes - U.S. revenue for Q4 was $414 million, down 5% sequentially, with U.S. energy centers contributing 76% of total U.S. revenues for the quarter [9][19] - Canadian revenue for Q4 was $75 million, a 13% decrease sequentially but up 4% year-over-year, with full-year Canadian revenue totaling $315 million, a 27% increase from 2021 [24][113] - International revenue for Q4 was $58 million, up $2 million sequentially, with full-year international revenue totaling $230 million, a 5% increase despite a negative foreign currency impact [78][85] Market Data and Key Metrics Changes - In the U.S. downstream sector, customer spending remained strong, particularly in refining and chemical sectors, with increased demand for fabricated equipment packages [10] - The Middle East saw increased rig activations and drilling activity, with significant investments in local pipe inventory [14] - The U.K. market returned to growth with higher order inquiries for various products, indicating a positive trend in market activity [13] Company Strategy and Development Direction - The company aims to enhance customer intimacy and improve product availability by transitioning to a more cohesive regional supercenter model [6] - Focus on acquisitions to strengthen market position, with two acquisitions completed in December 2022 to enhance pump and engineered process equipment capabilities [8][118] - Commitment to energy evolution and ESG solutions, with a focus on reducing emissions and improving supply chain efficiencies [90][138] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2023, expecting customer spending to increase year-over-year, despite potential challenges from rising costs and inflation [92][120] - The company anticipates a slight decline in gross margins in Q1 2023 due to seasonal impacts but expects strong performance throughout the year [39][125] - Management highlighted the importance of maintaining a disciplined capital allocation strategy while focusing on organic growth and M&A opportunities [28][123] Other Important Information - The company reported zero debt and a cash position of $212 million at year-end, with a focus on maintaining strong liquidity [87][134] - The company is leveraging digital technologies to streamline operations, with digital revenue accounting for 46% of total revenue in Q4 [110] - The company is actively working on integrating ESG solutions into its offerings, particularly through the EcoVapor acquisition [118][138] Q&A Session Summary Question: Plans for cash allocation between M&A and repurchase - Management indicated a focus on funding organic growth while also prioritizing M&A opportunities and share repurchase programs as cash flow increases [36][123] Question: Gross margin seasonality in 2023 - Management expects Q1 to be the lowest gross margin period due to seasonal impacts, with a potential easing of margins as the year progresses [39][125] Question: Customer activity outlook in the U.S. upstream market - Management noted that while there is pressure from lower gas prices, they are monitoring customer budgets and project pipelines closely [61][142]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE YEAR ENDED DECEMBER 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-36325 NOW INC. (Exact name of registrant as specified in its charter) Delaware 46-4191184 (State of Incorporation) (IRS Identification No.) 7402 North Eldridge Parkway, Houst ...

NOW Inc. (NYSE:DNOW) Q3 2022 Earnings Conference Call November 2, 2022 9:00 AM ET Company Participants Brad Wise - Vice President of Digital Strategy and Investor Relations David Cherechinsky - President and Chief Executive Officer Mark Johnson - Senior Vice President and Chief Financial Officer Conference Call Participants Nathan Jones - Stifel Jeff Robertson - Water Tower Research Sean Mitchell - Daniel Energy Partners Operator Good morning. My name is Sam, and I will be your conference operator today. At ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-36325 NOW INC. (Exact name of registrant as specified in its charter) Delaware 46-4191184 (State or other jurisdiction of (I.R.S. Employer incorporation or or ...

Financial Data and Key Metrics Changes - Revenues in Q2 2022 were $539 million, a 14% increase or $66 million growth over Q1 2022, and a 35% increase or $139 million year-over-year [40][41] - Gross margins reached 23.7%, up 110 basis points from Q1 2022, exceeding previous full-year guidance of 22% to 22.5% [45][40] - EBITDA for Q2 was $47 million, representing 8.7% of revenue, the highest level since being public [11][40] - GAAP net income for Q2 was $26 million or $0.23 per share, while non-GAAP net income excluding other costs was $29 million or $0.26 per share [50] Business Line Data and Key Metrics Changes - U.S. revenue was $408 million, up 22% sequentially and 38% year-over-year, driven by increased E&P customer activity [41][17] - Canadian revenue was $72 million, down 12% sequentially but up 41% year-over-year, marking the smallest second-quarter pullback on record [42][25] - International revenue was $59 million, up 4% sequentially and 11% year-over-year, with a 19% increase when excluding foreign currency impacts [43][44] Market Data and Key Metrics Changes - U.S. rig count growth was 13%, contributing to revenue growth in the U.S. segment [41][17] - International market conditions are improving, with increased offshore investments and activity in the Middle East and Southeast Asia [28][29] Company Strategy and Development Direction - The company is focused on maximizing efficiencies through regionalized fulfillment and enhancing customer proximity [14][17] - Recent acquisitions aim to fortify the company's position in non-commoditized customer solutions with better gross margins [35][37] - The company plans to invest in technology and training to improve operational efficiencies and customer service [96][98] Management's Comments on Operating Environment and Future Outlook - Management expects Q3 revenues to increase in the mid-single-digit percent range, with gross margins remaining at record high levels [64] - Full-year revenue is now expected to grow up to 30% compared to 2021, with EBITDA approximating 7% of full-year revenue [66] - The company anticipates generating positive free cash flow in 2022 despite potential seasonal revenue declines in Q4 [89][90] Other Important Information - The company has authorized an $80 million share repurchase program, reflecting confidence in its financial performance and balance sheet [38][62] - The company has ceased operations in Russia and reduced its footprint in certain international markets, impacting quarterly revenue by approximately $4 million [31][47] Q&A Session Summary Question: Can you comment on the upside drivers for gross margins in Q2? - Management noted that proactive inventory building and a large project contributed to higher gross margins, but expects margins to narrow slightly in Q3 [70][72] Question: What are the expectations for operating margins moving forward? - Management aims for a full-year EBITDA of 7%, with goals to grow further in future years [75][76] Question: What was the catalyst for the share repurchase announcement? - The catalyst was the belief that shares were undervalued, combined with a strong earnings profile and balance sheet [79] Question: How will free cash flow be impacted in the back half of the year? - Management expects a slight dip in free cash flow in Q4 due to seasonal revenue declines but remains optimistic about generating positive cash flow overall [88][90] Question: What is the outlook for international growth next year? - Management expressed optimism for double-digit growth in the international segment, supported by increasing activity and project opportunities [90]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-36325 NOW INC. (Exact name of registrant as specified in its charter) Delaware 46-4191184 (State or other jurisdiction of (I.R.S. Employer incorporation or organiz ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $473 million, a sequential increase of $41 million or 9.5% [45] - Year-over-year revenue growth was $112 million or 31% [45] - Gross margin for Q1 2022 was 22.6%, above the record 21.9% from 2021 [48] - GAAP net income for Q1 2022 was $30 million or $0.27 per share, while non-GAAP net income was $15 million or $0.14 per share [52] Business Line Data and Key Metrics Changes - U.S. revenue was $334 million, up 10% sequentially and 33% year-over-year [46] - Canada revenue grew to $82 million, a 14% sequential increase and 41% year-over-year [47] - International segment revenue was flat at $57 million sequentially but up 12% year-over-year [47] Market Data and Key Metrics Changes - The U.S. energy centers contributed approximately 79% of total U.S. revenues in Q1 2022 [46] - The company experienced growth in the Permian, Eagle Ford, Powder River, and Williston Basin markets [22] Company Strategy and Development Direction - The company is focused on transforming its business to serve as a critical link between global manufacturers and customers [11] - A regionalized project fulfillment strategy is being implemented, with plans to establish five supercenters by the end of the year [78] - The company aims to maintain a strong balance sheet with zero debt and significant liquidity to support growth and acquisitions [59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum in the business and the ability to generate positive cash flow despite growth [16][68] - The company raised its full-year revenue guidance to a 20% increase, with EBITDA to revenue incrementals approximating 20% [63] - Management noted the impact of geopolitical events, such as the Russian invasion of Ukraine, on energy security and demand for products [36] Other Important Information - The company has ceased operations in Russia, where revenues represented less than 1% of total [36] - The company is actively pursuing acquisitions, with a focus on smaller deals in the current market [74][75] - Workplace safety has improved, achieving a record low total recordable incident rate [65] Q&A Session Summary Question: Cash flow improvements despite growth outlook - Management highlighted improvements in working capital velocity and a leaner organization as key factors enabling positive cash flow [68][70] Question: Capital allocation strategy in the current market - Management confirmed plans to pursue acquisitions this year, despite higher seller expectations [74][75] Question: Impact of rig count and DUC count on future spending - Management indicated that the depletion of DUCs could lead to increased spending by customers in the future [76] Question: Regionalized fulfillment strategy progress - Management stated that the rollout of supercenters is more than halfway complete, focusing on customer proximity and efficiency [78] Question: WS&A expense growth in relation to revenue - Management expects WS&A expenses to grow at a lower rate than revenue, indicating a focus on efficiency [82][84] Question: Commodity pricing and potential upside - Management acknowledged the potential for price appreciation but noted that it depends on supply and demand dynamics [86]