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Earnings transcript
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NOW
ServiceNow, Inc.
$102.15
-0.93
(-0.9%)
| Exchange: | NYSE |
| Market Cap: | 105.348B |
| Shares Outstanding: | 120.3M |
Delayed data
About The Company
| Sector: | Technology | |||||
| Industry: | Software – Application | |||||
| CEO: | William R. McDermott | |||||
| Full Time Employees: | 26293 | |||||
| Address: |
| |||||
| Website: | https://www.servicenow.com |
ServiceNow, Inc. specializes in delivering cloud-based solutions designed to streamline and automate critical business services for organizations across the globe. Its flagship “Now Platform” serves as the foundation, leveraging technologies such as workflow automation, artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA). This platform also incorporates robust features like performance analytics, electronic service catalogs, configuration management systems, data benchmarking, encryption capabilities, and various collaboration and development tools. ServiceNow offers a comprehensive suite of applications built on this platform, catering to diverse enterprise needs. Key offerings include IT Service Management (ITSM), which streamlines support for employees, customers, and partners; IT Business Management (ITBM); IT Operations Management (ITOM), designed to integrate and manage both physical and cloud-based IT infrastructure; and IT Asset Management (ITAM) for automating asset lifecycles. Its Security Operations solution facilitates seamless integration between internal systems and third-party security tools. Beyond IT, the company provides solutions for Governance, Risk, and Compliance (GRC) to enhance organizational resilience, along with tools for Human Resources, Legal, and general workplace service delivery, including dedicated safe workplace applications. Other specialized applications cover Customer Service Management (CSM) and Field Service Management (FSM). To further extend functionality, ServiceNow offers App Engine for custom development and IntegrationHub to connect workflows across various applications. The company also provides a range of professional services, industry-specific solutions, and comprehensive customer support. ServiceNow’s diverse client base spans critical sectors such as government, financial services, healthcare, telecommunications, manufacturing, and education, alongside various IT services, technology, oil and gas, and consumer product industries. The company reaches these customers through a combination of its direct sales force and a network of resale partners. Notably, a strategic alliance with Celonis assists clients in pinpointing and prioritizing business processes ripe for automation. Established in 2004 and headquartered in Santa Clara, California, the company originally operated as Service-now.com before rebranding to ServiceNow, Inc. in May 2012.
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Revenue Segmentation
EPS
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Earnings Call
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Key takeaways
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Login — it's freeIncome Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 8,971,000 | 10,984,000 | 13,278,000 |
| Gross Profit | 7,050,000 | 8,697,000 | 10,295,000 |
| EBITDA | 1,594,000 | 2,226,000 | 2,999,000 |
| Operating Income | 762,000 | 1,364,000 | 1,824,000 |
| Net Income | 1,731,000 | 1,425,000 | 1,748,000 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Total Assets | 17,387,000 | 20,383,000 | 26,038,000 |
| Total Liabilities | 9,759,000 | 10,774,000 | 13,074,000 |
| Total Stockholders Equity | 7,628,000 | 9,609,000 | 12,964,000 |
| Total Debt | 2,284,000 | 2,278,000 | 3,203,000 |
| Cash and Cash Equivalents | 1,897,000 | 2,304,000 | 3,726,000 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | 3,398,000 | 4,267,000 | 5,444,000 |
| Capital Expenditure | -694,000 | -852,000 | -868,000 |
| Free Cash Flow | 2,704,000 | 3,415,000 | 4,576,000 |
| Net Income | 1,731,000 | 1,425,000 | 1,748,000 |
| Net Change in Cash | 429,000 | 406,000 | 1,422,000 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2030 | Full Access | Full Access | Full Access | Full Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 30,087,201.445 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (High) | 31,096,883.926 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (Avg) | 30,432,162.075 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Low) | 10,656,357.434 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (High) | 11,013,969.206 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Avg) | 10,778,536.420 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Low) | 9,407,315.948 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (High) | 9,819,132.459 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Avg) | 9,548,011.809 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Low) | 13,810,909.379 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (High) | 14,274,383.301 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Avg) | 13,969,256.442 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Avg) | 9.120 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (High) | 9.380 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Low) | 8.990 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated Revenue) | 15 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated EPS) | 4 | Full Access | Full Access | Full Access | Full Access |
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Current Key Metrics
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Login — it's freeForward P/E Ratios
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Login — it's freeSWOT Analysis
Strengths (preview)
- Strong Financial Performance: ServiceNow reported robust results in Q3 2024, exceeding revenue and earnings expectations as highlighted in the earnings call transcript. Key metrics such as revenue, net income, and operating cash flow likely reflect sustained growth, supported by historical income statement data showing consistent performance.
- Innovation Leadership: The company is positioned as a leader in AI-driven innovations and workflow automation, as emphasized in the Q3 2024 earnings call summary. This technological edge enhances its competitive standing within the software and IT services industry.
- Solid Market Position: With a significant market cap and strong performance metrics (e.g., perf1y, perf5y), ServiceNow demonstrates resilience and growth compared to industry and sector benchmarks, indicating a strong foothold in the technology sector.
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MARKETSnap estimates NOW intrinsic value between $686.27 – $702.27 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
[intrinsic_calculator]
Common questions about NOW valuation
Is ServiceNow, Inc. (NOW) overvalued or undervalued right now?
MARKETSnap estimates intrinsic value for ServiceNow, Inc. (NOW) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is NOW a buy, hold, or sell for long-term investors?
MARKETSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether NOW trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is NOW’s P/E ratio?
You can see NOW’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for NOW?
MARKETSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MARKETSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is NOW a good long-term investment?
Whether NOW fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MARKETSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
NOW
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Daily snapshot
-0.9
Trading Metrics:
| Open: | 103.38 | Previous Close: | 103.08 | |
| Day Low: | 98.42 | Day High: | 103.45 | |
| Year Low: | 81.24 | Year High: | 211.48 | |
| Price Avg 50: | 99.41 | Price Avg 200: | 138.8 | |
| Volume: | 23.521M | Average Volume: | 27.073M |
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Login — it's freeNOW full analysis
Hey everyone, welcome back to the channel. Today we’re doing a deep dive into ServiceNow, ticker NOW. This stock has been absolutely hammered over the past year, down over 46%. And the big question is, is this a massive mispricing, or is the market seeing something we’re not? We’re going to break down the business, the numbers, the competitive landscape, and figure out what’s really going on here. Let’s start with the big picture. ServiceNow is a company that’s been…
