ServiceNow (NOW) FY2022 results: revenue $7.2 billion, up 22.9% on the year

ServiceNow, Inc. (NOW) reported revenue of $7.2 billion for fiscal 2022, the year ended 31 December 2022, up 22.9% on the year before. Net income was $325 million, up 41.2%, and diluted earnings per share $0.32. The figures are the company's own, from the 10-K it filed with the SEC on 31 January 2023.

Revenue

$7.2 billion

+22.9% on the year

FY2015FY2022

Operating margin

4.9%

4.4% a year earlier

FY2015FY2022

Net income

$325 million

+41.2% on the year

FY2015FY2022

Diluted EPS

$0.32

+41.6% on the year

FY2015FY2022

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2022 · Q2 FY2022 · Q3 FY2022 · Q4 FY2022

Income statement (profit and loss)

$ million	FY2022	FY2021	FY2020	On the year
Revenue	7,245	5,896	4,519	+22.9%
Cost of revenue	1,573	1,353	987	+16.3%
Gross profit	5,672	4,543	3,532	+24.9%
Gross margin	78.3%	77.1%	78.2%
Research and development	1,768	1,397	1,024	+26.6%
Operating income	355	257	199	+38.1%
Operating margin	4.9%	4.4%	4.4%
Interest expense	27.0	28.0	33.0	-3.6%
Pre-tax income	399	249	150	+60.2%
Income tax	74.0	19.0	31.0	+289.5%
Effective tax rate	18.5%	7.6%	20.7%
Net income	325	230	119	+41.2%
Net margin	4.5%	3.9%	2.6%
Diluted EPS	$0.32	$0.23	$0.12	+41.6%

$ 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	FY2022	FY2021	FY2020	On the year
Operating cash flow	2,723	2,191	1,787	+24.3%
Capital expenditure	550	392	419	+40.3%
Free cash flow	2,173	1,799	1,367	+20.8%
Free cash flow margin	30.0%	30.5%	30.3%
Cash from investing	-2,583	-1,607	-1,507
Cash from financing	-344	-506	597
Depreciation and amortisation	433	472	336	-8.3%
Share-based compensation	1,401	1,131	870	+23.9%
Buybacks	0.0	0.0	n/a
Diluted shares, weighted	1,018m	1,016m	1,012m	+0.2%
Shares outstanding at period end	1,014m	998m	979m	+1.6%

Balance sheet

$ million	FY2022	FY2021	FY2020	On the year
Shareholders' equity	5,032	3,695	2,834	+36.2%
Debt	1,486	1,576	1,640	-5.7%
Operating lease liabilities	650	556	423	+16.9%
Other liabilities	6,131	4,971	3,818	+23.3%
Total liabilities and equity	13,299	10,798	8,715	+23.2%
Fixed assets	1,053	766	660	+37.5%
Goodwill	824	777	241	+6.0%
Intangible assets	232	287	153	-19.2%
Investments	4,927	3,206	2,883	+53.7%
Cash and equivalents	1,470	1,728	1,677	-14.9%
Receivables	1,725	1,390	1,009	+24.1%
Other assets	3,068	2,644	2,092	+16.0%
Total assets	13,299	10,798	8,715	+23.2%

10-K for the year ended 31 December 2022, filed 31 January 2023: the filing.