JHVEPhoto ServiceNow (NYSE:NOW) (NEOE:NOWS:CA) delivered an earnings report that was met with cheer from investors, as its stock jumped 6% premarket. But details matter. I assert, as I've done before, that ServiceNow is on the path toward becoming a megacap stock, a household name. Indeed, I argue that investors are getting a very fair entry price right now while paying 35x next year's free cash flow. ServiceNow is not only delivering +20% premium growth, but it's capable of sustaining this growth in the me ...

This presentation includes certain non‐GAAP financial measures and the corresponding growth rates as defined by SEC rules. For additional information, see the slide titled "Statement Regarding Use of Non-GAAP Financial Measures." Terms such as Remaining Performance Obligations (RPO), Current Remaining Performance Obligations (cRPO) and Renewal Rate shall have the meanings set forth in our filings with the SEC. The information in this presentation on new products, features, or functionality is intended to ou ...

ServiceNow, Inc. (NYSE:NOW) Q2 2024 Earnings Conference Call July 24, 2024 5:00 PM ET Company Participants Darren Yip - VP, IR William McDermott - Chairman & CEO Gina Mastantuono - CFO Conference Call Participants Sanjit Singh - Morgan Stanley Raimo Lenschow - Barclays Kash Rangan - Goldman Sachs Peter Weed - Bernstein Samad Samana - Jefferies Karl Keirstead - UBS Brad Sills - Bank of America Securities Kirk Materne - Evercore ISI Alex Zukin - Wolfe Research Mark Murphy - JPMorgan Joel Fishbein - Truist Sec ...

The reported revenue compares to the Zacks Consensus Estimate of $2.61 billion, representing a surprise of +0.79%. The company delivered an EPS surprise of +9.82%, with the consensus EPS estimate being $2.85. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Current Remaining Performance Obligations(cRPO) - GAAP: $8.78 billion versus $ ...

What looked like a simple continuation of a market sell-off this morning got worse. I mean, it clearly did. Only the small-cap Russell 2000 spent any time in green at all today — and that was more a minute or two early in the session. The Dow, S&P 500 and the Nasdaq all closed near session lows. The Dow dropped -504 points, -1.25% — and it got off easy. The S&P 500 fell -2.31%, the Russell was down -2.13% and the Nasdaq really hit the skids today, -654 points or -3.64%. S&P flash PMI for July Services and M ...

Table of Contents FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2024 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-35580 Not Applicable (Former name, former address and formal fiscal year, if changed since last report) Title of each class Trading Symbol Name of each exchange on which registered Common stock, par value $0.001 per share NOW T ...

Revenue Growth - Subscription revenues for Q2 2024 increased to $2.542 billion, up 22.5% from $2.075 billion in Q2 2023[2] - Total revenues for Q2 2024 reached $2.627 billion, a 22.2% increase from $2.150 billion in Q2 2023[2] - Subscription revenues for Q2 2024 were $2,542 million, representing 23% year-over-year growth[25] - Total revenues for Q2 2024 were $2,627 million, representing 22% year-over-year growth[25] - ServiceNow's full-year 2024 subscription revenue guidance is $10,575 - $10,585 million, representing 22% year-over-year growth[48] Net Income and Profitability - Net income for Q2 2024 was $262 million, compared to $1.044 billion in Q2 2023, impacted by a discrete income tax benefit in the prior year[2] - Non-GAAP net income for Q2 2024 was $651 million, up 34% from $486 million in Q2 2023[5] - Net income for the three months ended June 30, 2024 was $262 million, compared to $1,044 million in the same period last year[12] - Q2 2024 GAAP operating income was $240 million, compared to $117 million in Q2 2023, with non-GAAP operating income reaching $720 million, up from $544 million in the same period last year[68] - Q2 2024 GAAP net income was impacted by a $910 million release of a valuation allowance on deferred tax assets and $55 million as part of the effective tax rate[62] - Non-GAAP operating margin for Q2 2024 was 27%, up from 25% in Q2 2023, driven by improved efficiency and cost management[60] - Non-GAAP operating margin guidance for Q3 2024 is 29.5%, reflecting continued operational efficiency[80] Cash Flow and Financial Position - Free cash flow for Q2 2024 was not explicitly stated, but the company emphasizes its importance as an indicator of business strength[10] - Net cash provided by operating activities for the six months ended June 30, 2024 was $1,961 million, up from $1,482 million in the prior year period[12] - Free cash flow margin for Q2 2024 was 14%, down from 21% in Q2 2023, primarily due to increased capital expenditures[69] - Cash, cash equivalents and restricted cash at the end of the period was $2,167 million for the six months ended June 30, 2024, compared to $1,670 million in the same period last year[12] - Non-GAAP free cash flow margin was 31% for the three and six months ended June 30, 2024[17] - Purchases of property and equipment totaled $397 million for the six months ended June 30, 2024, up from $297 million in the prior year period[12] Assets and Liabilities - Current assets as of June 30, 2024, totaled $8.021 billion, up from $7.777 billion at the end of 2023[3] - Total liabilities and stockholders' equity as of June 30, 2024, stood at $18.207 billion, compared to $17.387 billion at the end of 2023[3] - The company reclassified $184 million from investing activities to financing activities related to the acquisition of G2K Group GmbH[67] Stock-Based Compensation and Expenses - Stock-based compensation for Q2 2024 was $444 million, contributing to the reconciliation between GAAP and non-GAAP net income[5] - Stock-based compensation expense as a percentage of subscription revenues was 2% for the three and six months ended June 30, 2024[16] - Stock-based compensation expense as a percentage of total revenues was 17% in Q2 2024, consistent with Q2 2023[60] - Amortization of purchased intangibles as a percentage of total revenues remained stable at 1% in Q2 2024[60] Performance Obligations - Current remaining performance obligations (cRPO) for Q2 2024 were $8.78 billion, representing 22% year-over-year growth[25] - Remaining performance obligations (RPO) for Q2 2024 were $18.6 billion, representing 31% year-over-year growth[25] Generative AI and Strategic Investments - Generative AI contributed significantly, with NNACV for Now Assist doubling quarter over quarter and 11 deals greater than $1 million in Q2[25] - ServiceNow acquired Raytion, a Germany-based leader in information retrieval technology, to enhance GenAI-powered search and knowledge management capabilities[25] - ServiceNow made its first telecommunications-focused Ecosystem Ventures investment in Prodapt to accelerate AI-enabled solutions[28] International Expansion and Cloud Services - ServiceNow announced plans for a UAE Cloud, hosted on Microsoft Azure, with targeted delivery in the first half of 2025[28] - Constant currency adjustments were applied to Q2 2024 revenues using exchange rates of 1 USD to 0.93 Euros and 1 USD to 0.79 GBP[55] Tax and Currency Impact - The company is using a non-GAAP tax rate of 20% and 19% for the three and six months ended June 30, 2024 and 2023, respectively[14] - The strengthening of the U.S. dollar resulted in a $20 million FX headwind to 2024 subscription revenues compared to previous guidance[70] Investor Relations and Communication - The company will host a conference call on July 24, 2024, at 2 p.m. PT to discuss the financial results[8] - The live webcast of the conference call will be available on the ServiceNow investor relations website[9] Gross Profit and Margins - GAAP subscription gross profit for the six months ended June 30, 2024 was $4,155 million, compared to $3,356 million in the same period last year[13] - Non-GAAP subscription gross margin was 85% for both the three and six months ended June 30, 2024[13] - GAAP operating margin was 12% for the three and six months ended June 30, 2024[16]

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For 2024, ServiceNow expects subscription revenues to be $10.56-$10.575 billion (up $20 million from the previous guidance), which suggests a rise between 21.5% and 22% from 2023 on a GAAP basis. At constant currency, subscription revenues are expected to grow 21.5% over 2023. The Zacks Consensus Estimate for 2024 revenues is pegged at $10.88 billion, indicating 21.32% growth year over year. The consensus mark for earnings is pegged at $13.51 per share, unchanged over the past 30 days and indicating a 25.32 ...

ServiceNow (NOW) closed at $738.77 in the latest trading session, marking a +0.37% move from the prior day. This move outpaced the S&P 500's daily loss of 0.78%. On the other hand, the Dow registered a loss of 1.29%, and the technology-centric Nasdaq decreased by 0.7%. The upcoming earnings release of ServiceNow will be of great interest to investors. The company's earnings report is expected on July 24, 2024. The company is predicted to post an EPS of $2.85, indicating a 20.25% growth compared to the equiv ...