ServiceNow (NOW) FY2021 results: revenue $5.9 billion, up 30.5% on the year

ServiceNow, Inc. (NOW) reported revenue of $5.9 billion for fiscal 2021, the year ended 31 December 2021, up 30.5% on the year before. Net income was $230 million, up 93.4%, and diluted earnings per share $0.23. The figures are the company's own, from the 10-K it filed with the SEC on 3 February 2022.

Revenue

$5.9 billion

+30.5% on the year

FY2014FY2021

Operating margin

4.4%

4.4% a year earlier

FY2014FY2021

Net income

$230 million

+93.4% on the year

FY2014FY2021

Diluted EPS

$0.23

+91.5% on the year

FY2014FY2021

this yearthe year beforeHover a bar for its figure.

The year in brief

The quarters: Q4 FY2021

Income statement (profit and loss)

$ million	FY2021	FY2020	FY2019	On the year
Revenue	5,896	4,519	3,460	+30.5%
Cost of revenue	1,353	987	797	+37.1%
Gross profit	4,543	3,532	2,664	+28.6%
Gross margin	77.1%	78.2%	77.0%
Research and development	1,397	1,024	748	+36.4%
Operating income	257	199	42.0	+29.2%
Operating margin	4.4%	4.4%	1.2%
Interest expense	28.0	33.0	33.0	-15.2%
Pre-tax income	249	150	67.0	+66.0%
Income tax	19.0	31.0	-560	-38.7%
Effective tax rate	7.6%	20.7%	-835.1%
Net income	230	119	627	+93.4%
Net margin	3.9%	2.6%	18.1%
Diluted EPS	$0.23	$0.12	$0.64	+91.5%

$ 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	FY2021	FY2020	FY2019	On the year
Operating cash flow	2,191	1,787	1,236	+22.6%
Capital expenditure	392	419	265	-6.5%
Free cash flow	1,799	1,367	971	+31.6%
Free cash flow margin	30.5%	30.3%	28.1%
Cash from investing	-1,607	-1,507	-724
Cash from financing	-506	597	-302
Depreciation and amortisation	472	336	252	+40.3%
Share-based compensation	1,131	870	662	+29.9%
Buybacks	0.0	n/a	0.0
Diluted shares, weighted	1,016m	1,012m	986m	+0.3%
Shares outstanding at period end	998m	979m	947m	+1.9%

Balance sheet

$ million	FY2021	FY2020	FY2019	On the year
Shareholders' equity	3,695	2,834	2,128	+30.4%
Debt	1,576	1,640	695	-3.9%
Operating lease liabilities	556	423	383	+31.5%
Other liabilities	4,971	3,818	2,816	+30.2%
Total liabilities and equity	10,798	8,715	6,022	+23.9%
Fixed assets	766	660	468	+16.1%
Goodwill	777	241	157	+222.7%
Intangible assets	287	153	144	+87.6%
Investments	3,206	2,883	1,929	+11.2%
Cash and equivalents	1,728	1,677	776	+3.1%
Receivables	1,390	1,009	835	+37.7%
Other assets	2,644	2,092	1,714	+26.4%
Total assets	10,798	8,715	6,022	+23.9%

10-K for the year ended 31 December 2021, filed 3 February 2022: the filing.