Dnow (DNOW) FY2023 results: revenue $2.3 billion, up 8.7% on the year

Dnow Inc. (DNOW) reported revenue of $2.3 billion for fiscal 2023, the year ended 31 December 2023, up 8.7% on the year before. Net income was $250 million, up 95.3%, and diluted earnings per share $2.27. The figures are the company's own, from the 10-K it filed with the SEC on 15 February 2024.

Revenue

$2.3 billion

+8.7% on the year

FY2016FY2023

Operating margin

6.2%

6.1% a year earlier

FY2016FY2023

Net income

$250 million

+95.3% on the year

FY2016FY2023

Diluted EPS

$2.27

+100.9% on the year

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	2,321	2,136	1,632	+8.7%
Cost of revenue	1,782	1,630	1,275	+9.3%
Gross profit	539	506	357	+6.5%
Gross margin	23.2%	23.7%	21.9%
Selling, general and administrative	395	n/a	n/a
Operating income	144	131	9.0	+9.9%
Operating margin	6.2%	6.1%	0.6%
Pre-tax income	142	139	12.0	+2.2%
Income tax	-109	10.0	7.0
Effective tax rate	-76.8%	7.2%	58.3%
Net income	250	128	5.0	+95.3%
Net margin	10.8%	6.0%	0.3%
Diluted EPS	$2.27	$1.13	$0.05	+100.9%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2023	FY2022	FY2021	On the year
Operating cash flow	188	0.0	30.0
Capital expenditure	17.0	9.0	5.0	+88.9%
Free cash flow	171	-9.0	25.0
Free cash flow margin	7.4%	-0.4%	1.5%
Cash from investing	-48.0	-87.0	-96.0
Cash from financing	-55.0	-10.0	-6.0
Depreciation and amortisation	26.0	19.0	23.0	+36.8%
Share-based compensation	15.0	11.0	8.0	+36.4%
Buybacks	50.0	7.0	0.0	+614.3%
Diluted shares, weighted	108m	111m	110m	-2.5%
Shares outstanding at period end	106m	110m	111m	-3.7%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	1,060	842	712	+25.9%
Non-controlling interest	3.0	2.0	1.0	+50.0%
Debt	0.0	0.0	0.0
Operating lease liabilities	30.0	25.0	17.0	+20.0%
Finance lease liabilities	15.0	7.0	3.0	+114.3%
Other liabilities	421	444	371	-5.2%
Total liabilities and equity	1,529	1,320	1,104	+15.8%
Fixed assets	131	119	111	+10.1%
Goodwill	139	116	67.0	+19.8%
Intangible assets	28.0	25.0	9.0	+12.0%
Cash and equivalents	299	212	313	+41.0%
Receivables	384	398	304	-3.5%
Inventory	366	381	250	-3.9%
Other assets	182	69.0	50.0	+163.8%
Total assets	1,529	1,320	1,104	+15.8%

10-K for the year ended 31 December 2023, filed 15 February 2024: the filing.