ServiceNow, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited)

Transcription

1 Condensed Consolidated Statements of Operations (in thousands, except share and per share data) Revenues: Total revenues Cost of revenues (1) : Total cost of revenues $ 117,375 $ 71,558 21,715 14, ,090 85,939 31,189 18,312 21,925 13,996 53,114 32,308 Gross profit 85,976 53,631 Operating expenses (1) : Sales and marketing Research and development General and administrative Total operating expenses 69,416 38,226 31,110 16,039 21,631 12, ,157 66,544 Loss from operations (36,181) (12,913) Interest and other income (expense), net (5,963) 119 Loss before provision for income taxes (42,144) (12,794) Provision for income taxes 1, Net loss $ (43,311) $ (13,358) Net loss per share - Basic and Diluted Weighted-average shares used to compute net loss per share - Basic and Diluted $ (0.30) $ (0.10) 142,060, ,782,029 (1) Includes total stock-based compensation expense as follows: Cost of revenues: Sales and marketing Research and development General and administrative $ 3,076 $ 1,794 2, ,043 3,985 7,839 3,114 6,879 2,332

2 Condensed Consolidated Balance Sheets (in thousands) ASSETS Current assets: March 31, 2014 December 31, 2013 $ 337,920 $ 366, , , , ,339 32,887 31,123 32,044 23,733 Total current assets 828, ,749 Deferred commissions, less current portion Long-term investments Property and equipment, net Intangible assets, net Goodwill Cash and cash equivalents Short-term investments Accounts receivable, net Current portion of deferred commissions Prepaid expenses and other current assets Other assets 21,575 21, , ,356 86,200 75,560 5,771 5,796 8,689 8,724 4,766 3,973 Total assets $ 1,224,261 $ 1,168,476 LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities: Accounts payable Accrued expenses and other current liabilities Current portion of deferred revenue $ 22,664 $ 7,405 48,619 68, , ,553 Total current liabilities 365, ,088 Deferred revenue, less current portion Convertible senior notes, net Other long-term liabilities Stockholders equity 14,249 14, , ,777 18,924 17, , ,259 Total liabilities and stockholders equity $ 1,224,261 $ 1,168,476

3 Condensed Consolidated Statements of Cash Flows (in thousands) Cash flows from operating activities: Net loss Adjustments to reconcile net loss to net cash Other provided by operating activities: Depreciation and amortization Amortization of premiums on investments Amortization of deferred commissions Amortization of debt discount and issuance costs Stock-based compensation Tax benefit from employee stock plans Changes in operating assets and liabilities: Accounts receivable Deferred commissions Prepaid expenses and other assets Accounts payable Deferred revenue Accrued expenses and other liabilities Cash flows from investing activities: Maturities of investments Restricted cash Net cash used in investing activities Cash flows from financing activities: Net cash provided by operating activities Purchases of property and equipment Purchases of investments Sale of investments Offering costs paid in connection with follow-on offering Proceeds from employee stock plans Tax benefit from employee stock plans Net cash provided by financing activities Foreign currency effect on cash and cash equivalents Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period $ (43,311) $ (13,358) 7,938 4,364 1,814 1,095 11,149 5,366 7,081 29,229 12,046 (940) (1,851) (27) (2,938) (13,232) (9,269) (8,910) 3,688 12,075 (1,471) 42,172 25,729 (21,328) (8,959) 24,217 15,023 (10,968) (10,415) (134,856) (55,946) 25,528 44,668 55,350 (55) (75,683) (11,011) (698) 22,214 21, ,851 23,154 22,621 (71) (840) (28,383) 25, , ,989 $ 337,920 $ 144,782 Calculation of free cash flows (a non-gaap measure): Net cash provided by operating activities Purchases of property and equipment Free cash flows $ 24,217 $ 15,023 (10,968) (10,415) $ 13,249 $ 4,608

4 Results of Operations GAAP to Non-GAAP Reconciliation (in thousands except share and per share data) Reconciliation of gross profit: Revenues: GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP $ 117,375 $ $ 117,375 $ 71,558 $ $ 71,558 21,715 21,715 14,381 14,381 Total revenues 139, ,090 85,939 85,939 Cost of revenues (1) : Gross profit: 31,189 (3,076) 28,113 18,312 (1,794) 16,518 21,925 (2,392) 19,533 13,996 (821) 13,175 Total cost of revenues 53,114 (5,468) 47,646 32,308 (2,615) 29,693 86,186 3,076 89,262 53,246 1,794 55,040 (210) 2,392 2, ,206 Total gross profit $ 85,976 $ 5,468 $ 91,444 $ 53,631 $ 2,615 $ 56,246 Reconciliation of operating expenses: Operating expenses (1) : Sales and marketing Research and development General and administrative $ 69,416 $ (9,043) $ 60,373 $ 38,226 $ (3,985) $ 34,241 31,110 (7,839) 23,271 16,039 (3,114) 12,925 21,631 (6,879) 14,752 12,279 (2,332) 9,947 Total operating expenses $ 122,157 $ (23,761) $ 98,396 $ 66,544 $ (9,431) $ 57,113 Reconciliation of loss from operations, interest and other income (expense) net, provision for income taxes, net loss, and net loss per share: Loss from operations Interest and other income (expense), net (2) Loss before provision for income taxes (1) (2) Provision for income taxes Net loss $ (36,181) $ 29,229 $ (6,952) $ (12,913) $ 12,046 $ (867) (5,963) 7,081 1, $ (42,144) $ 36,310 $ (5,834) $ (12,794) $ 12,046 $ (748) 1,167 4,680 5, ,103 $ (43,311) $ 31,630 $ (11,681) $ (13,358) $ 11,507 $ (1,851) Net loss per share - Basic and Diluted Weighted-average shares used to compute net loss per share - Basis and Diluted $ (0.30) $ 0.22 $ (0.08) $ (0.10) $ 0.09 $ (0.01) 142,060, ,060, ,782, ,782,029 (1) Adjustments include stock-based compensation and the related tax effect. (2) Adjustments include amortization of debt discount and issuance costs for the convertible senior notes and the related tax effect.

5 Non-GAAP Billings Reconciliation (in thousands) March 31, December 31, March 31, Total revenues Deferred revenue, end of period Less: deferred revenue, beginning of period Billings $ 139,090 $ 125,230 $ 85, , , , , , ,361 $ 180,840 $ 166,151 $ 110,343

6 Reconciliation of Non-GAAP Financial Guidance The financial guidance provided below is an estimate based on information available as of April 23, The company s future performance and financial results are subject to risks and uncertainties, and actual results could differ materially from the guidance set forth below. Some of the factors that could affect the company s financial results are stated above in this press release. More information on potential factors that could affect the company s financial results is included from time to time in the company s public reports filed with the SEC, including the company's Annual Report on Form 10-K filed on Feburary 28, 2014, the company's Form 10-Q for the quarter ended March 31, 2014 to be filed with the SEC. The company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. June 30, 2014 Non-GAAP subscription gross margin 77% Stock-based compensation expense (3%) GAAP subscription gross margin 74% Non-GAAP professional services and other gross margin 30% Stock-based compensation expense (11%) GAAP professional services and other gross margin 19% Non-GAAP total gross margin 67% Stock-based compensation expense (4%) GAAP total gross margin 63% Non-GAAP operating margin (6%) Stock-based compensation expense (25%) GAAP operating margin (31%)