Financial Data and Key Metrics Changes - Total revenue for Q3 2023 was $588 million, down $6 million or 1% from Q2 2023, but up $11 million or 2% year-over-year [50][70] - EBITDA for Q3 2023 was $46 million, or 7.8% of revenue, with year-to-date EBITDA at $140 million, or 7.9% of revenue [50][45] - Net income attributable to NOW Inc. for Q3 was $35 million, or $0.32 per fully diluted share, while non-GAAP net income was $28 million, or $0.25 per fully diluted share [51][52] - Cash position at the end of Q3 was $194 million, with total liquidity of $547 million [10][52] Business Line Data and Key Metrics Changes - The US Process Solutions business grew to a record 30% of the US segment in Q3, driven by high demand for various equipment [5] - Canada revenues were $68 million for the quarter, a 3% sequential increase, but lower than expected due to market disruptions [6][9] - DigitalNOW revenue as a percentage of total SAP revenue was 46% in Q3, down from 48% in Q2 2023 [7] Market Data and Key Metrics Changes - International revenue for Q3 was $72 million, flat sequentially but up 29% year-over-year [9] - US revenue for Q3 totaled $448 million, a decrease of $8 million or 2% sequentially, despite a 10% decline in US rig counts [50][45] Company Strategy and Development Direction - The company is focused on maximizing shareholder value, leveraging a debt-free balance sheet, and pursuing margin-accretive acquisitions [13][49] - The strategy includes expanding into carbon capture and renewable natural gas markets, with significant growth opportunities identified [40][92] - The company is transitioning to the DNOW brand to better communicate its vision and enhance market presence [79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue retention despite a declining rig count, indicating a strong market position [15] - The company expects a seasonal slowdown in Q4 due to customer budget exhaustion and fewer business days [39][53] - Full-year revenue growth is anticipated to be approximately 8%, despite challenges in the US rig count [53][80] Other Important Information - The company repurchased $5 million worth of shares in Q3, with cumulative repurchases totaling $56 million out of an authorized $80 million [49][52] - The effective tax rate for Q3 was 5.4% on a GAAP basis, with a non-GAAP effective tax rate of approximately 26% [76] Q&A Session Summary Question: Expectations for rig growth in 2024 - Management noted that there is speculation about growth in rig counts as customers are expected to reset budgets and add rigs [82] Question: Acquisition opportunities to support Process Solutions business - Management confirmed they are looking for acquisitions that provide exclusivity in territories and enhance margins [23] Question: Customer conversations regarding energy evolution projects - Management indicated that most growth opportunities will come from existing customers investing in energy transition projects [63][88]

DNOW. Energy Delivered." Statements made in the course of this presentation that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained f ...

Financial Performance - For the three months ended September 30, 2023, the company generated net income of $35 million on revenue of $588 million, representing a revenue increase of $11 million or 1.9% compared to the same period in 2022[82]. - For the nine months ended September 30, 2023, net income attributable to the company was $100 million on revenue of $1,766 million, reflecting an increase in revenue of $177 million or 11.1% year-over-year[82]. - The company reported an operating profit of $37 million for the three months and $108 million for the nine months ended September 30, 2023, compared to $44 million and $96 million for the same periods in 2022, respectively[83]. - Total revenue for the three months ended September 30, 2023, was $588 million, an increase of $11 million or 1.9% compared to $577 million in the same period of 2022[86]. - U.S. revenue for the three months ended September 30, 2023, was $448 million, up $13 million or 3.0% from $435 million in 2022, driven by acquisitions[87]. - Canada revenue decreased by $18 million or 20.9% to $68 million for the three months ended September 30, 2023, primarily due to a decrease in rig count[89]. - International revenue increased by $16 million or 28.6% to $72 million for the three months ended September 30, 2023, driven by stronger project activity[91]. - Total operating profit for the three months ended September 30, 2023, was $37 million, a decrease of $7 million or 15.9% compared to $44 million in 2022[86]. - U.S. operating profit for the three months ended September 30, 2023, was $29 million, down $2 million from $31 million in 2022, primarily due to decreased product margins[88]. - Canada generated an operating profit of $6 million for the three months ended September 30, 2023, a decline of $4 million from $10 million in 2022[90]. - International segment operating profit was $2 million for the three months ended September 30, 2023, a decrease of $1 million from $3 million in 2022[92]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2023, was $83 million, compared to a cash outflow of $6 million in the same period of 2022[106]. - Net cash used in investing activities for the nine months ended September 30, 2023, was $47 million, primarily related to business acquisitions of approximately $33 million[107]. - The company intends to pursue additional acquisition candidates, funding future cash acquisitions primarily with cash on hand, cash flow from operations, and the revolving credit facility[110]. - The share repurchase program approved on August 3, 2022, allows for the purchase of up to $80 million of common stock through December 31, 2024; as of September 30, 2023, $49 million worth of shares have been repurchased, with approximately $24 million remaining[111]. Market Conditions and Outlook - The average price of West Texas Intermediate Crude was $82.30 per barrel in Q3 2023, down 11.7% from $93.18 in Q3 2022, while natural gas prices fell 67.6% to $2.59 per MMBtu from $7.99[77]. - The worldwide active drilling rig count decreased by 0.4% to 1,790 rigs in Q3 2023 compared to Q2 2023, with the U.S. rig count declining by 9.8% to 651 rigs[79]. - The company expects oil and gas demand to grow over the next several years, despite recent volatility in commodity prices due to geopolitical instability and economic uncertainty[84]. - The company aims to support energy evolution investments by expanding its product and solution offerings to meet changing customer requirements[85]. Global Operations - The company operates through three reportable segments: U.S., Canada, and International, with approximately 110 locations in the U.S. and 40 in Canada[70][73]. - The company has a global presence with operations in approximately 20 countries and serves customers in about 80 countries, enhancing its value proposition[66]. Currency and Commodity Sensitivity - For the nine months ended September 30, 2023, approximately 25% of net sales were generated outside the U.S., exposing the company to foreign currency exchange rate fluctuations[116]. - The average foreign exchange rate for the first nine months of 2023 decreased by approximately 4% compared to the same period in 2022, with the Canadian dollar, British pound, and Australian dollar decreasing by approximately 5%, 1%, and 5% respectively[120]. - A hypothetical 10% change in foreign currency rates would have resulted in a $2 million change in net income for the nine months ended September 30, 2023[121]. - The company reported foreign currency transaction losses of $1 million for both the nine months ended September 30, 2023, and 2022, primarily due to exchange rate fluctuations[118]. - The company is sensitive to steel prices, which can impact product pricing, particularly steel tubular prices[122].

NOW, Inc. (NYSE:DNOW) Q2 2023 Earnings Conference Call August 2, 2023 9:00 AM ET Company Participants Brad Wise - vice President-Digital Strategy and Investor Relations David Cherechinsky - President and Chief Executive Officer and Director Mark Johnson - Senior Vice President and Chief Financial Officer Conference Call Participants Adam Farley - Stifel Financial Corp. Jeff Robertson - Water Tower Research Douglas Becker - Capital One Financial Operator Good morning. My name is Chris, and I'll be your confe ...

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 ...